There are indications that a price war has commenced on the highly lucrative London route following the entry of Air Peace.
The Chief Executive Officer of Air Peace, Allen Onyema, has alleged that foreign airlines crashed their fares drastically with a view to frustrating Air Peace.
Onyema who spoke during a Channels TV interview said foreign airlines which used to charge exorbitant fares before the entry of Air Peace have now reduced prices significantly.
Air Peace, Nigeria’s largest domestic carrier, commenced the Lagos-London route on March 30, almost seven years after a Nigerian carrier flew the route.
Many Nigerians had complained about the exorbitant fares on the route even as Onyema confirmed that a Business Class return ticket was being sold for N17m at some point.
But Air Peace’s entry crashed the fares with a one-way ticket coming down to as low as N738,000 from over $2000 it was initially sold.
Onyema however stated that foreign airlines are now crashing fares despite there not being a significant reduction in the exchange rate.