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How Nigerian Airlines Beat High Costs by Increasing Flight Seats

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Nigerian airlines have adopted a new strategy to cope with the high operating costs in the aviation industry: increasing the number of flight seats. This allows them to accommodate more passengers and boost their revenue while reducing the per-seat costs.

According to Susan Akporiaye, the president of the National Association of Nigeria Travel Agencies, the airlines have started to release lower seats, which are cheaper and more attractive to customers. She said this was a response to the fluctuating exchange rate, which affects the airlines’ operating costs.

She explained that previously, the airlines had stopped selling off all the cheap classes and were only selling the expensive ones because of the issue of trapped funds. However, now that the exchange rate is high, they are releasing cheap seats to get more revenue and stay afloat.

Nigeria’s aviation industry has been facing many challenges, such as regulatory, institutional, and structural issues, lack of access to financial facilities, underfunding, and poor infrastructure. These challenges have also led some airlines to limit or stop their operations in the country.

However, the industry has also witnessed some positive developments in 2023, such as the assent of the Civil Aviation Act by President Bola Tinubu, which aims to establish an effective regulatory and institutional framework for civil aviation in Nigeria. The act also promotes aviation safety and security and ensures Nigeria’s compliance with international aviation agreements.

Another notable development is the partnership between Nigerian Airways and Ethiopian Airways, which involves acquiring a 49% stake in the former. This collaboration has been described as a milestone for the African aviation industry, as it will enhance connectivity, trade, and tourism between the two most populous nations on the continent.

The Nigerian government has also committed to invest more in infrastructure and facilities for safe, secure, environmentally friendly, and sustainable civil aviation. It has also pledged to support the ideals and aspirations of the International Civil Aviation Organisation (ICAO) and collaborate with other member states.

The Nigerian aviation industry is expected to experience significant growth and improvement in development, infrastructure, safety, and security in the coming years. With more innovations and collaborations, the industry will be able to overcome its challenges and contribute to the economic development of Nigeria and Africa at large.

Source: PUNCH

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