Nigerians flying out of the country for example, between Lagos and London route, can now get cheaper fares as low as N800,000 contrary to the notion that the least fare on the route has skyrocketed to over N3 million.
The drop in the fares has been attributed to the decision of many of the foreign carriers operating into the country to bring back their low inventory fares, which they had hitherto suspended from their systems in Nigeria to protest their trapped funds running into over $800million.
The latest information has equally contradicted the reports that the sharp increase in the prices of airfares on international routes are caused by the closure on Niger’s airspace.
Speaking to the Nigerian Tribune, the President of the National Association of Nigerian Travel Agents (NANTA), Mrs Susan Akporiaye who said the seeming increase in the fares was caused by the fluctuations in the exchange rates, however insisted that lower fares are equally available.
The NANTA leader, who said the diversion of flights from the Niger’s airspace was not responsible for the fare increase, cited how the travel agents’ leadership were able to make the foreign airlines bring back their low fares inventories following the unification of the exchange rates.
Explaining reasons behind the unstable fares, Akporiaye declare: “It is not true that an economy class ticket on Lagos/London is now N4million. The fluctuation of prices that we have been experiencing is no news, it’s actually because of the I $ E window, it fluctuates’ sometimes it goes up by N50, N60 or N70, it comes down, it goes up.
If it was N740 something to a dollar, today it may go to N785, so it is not true that economy class is N4 million.
“There is a whole lot happening at the same time, remember trapped fund issue led to foreign airlines, not all of them selling only the highest fares which did not mean they increased the fares, it was just that they removed all the cheap fares out of the systems and they only restricted the travel agencies in Nigeria to sell only the highest ones and at that time those highest fares was going for about N3 million, N3 .2million.
As that time because of the trapped funds, some airlines, majority of them, made the decision to shut down their low inventory so that they can break even and not run at a loss, during the restriction of low fares, we were selling at N450, N460 now when unification took place, we are now selling between N700, N800, so definitely that highest fare of N3 million when the rate was N450, at N800 that highest fare of N3 million is going to be over N4 million .
“So it’s not the Niger airspace closure that caused that, if you do the mathematics yourself, the highest economy at N450 rate was between N3 million, N2.7million, N2.9 million and N3 million.
That same highest economy at N800 rate of course is going to be over N4 million, so that’s what is happening and NANTA began to talk to the airlines and engage them that now that there are no more two different rates any more, that it has been unified and limited to I $ E window, that there is absolutely no reason why the airlines should continue to sell only the highest fares any more. That they should release and bring the low fares because now we are selling at N800 why are they still selling the highest fares that there is no point hence, should bring the low fares.
“Luckily for us a lot of them listened although not all but a lot of them and they released those low classes ones that was shut down so upon releasing those low ones shut down, you can now get fares of N800, 000, N1 million to London.
In fact you can even get, for ones that did not even shut down their low fares at all we were getting N400,000 for those ones that never restricted their low fares. So those ones at N800,000 is now going for N650, 000 then the ones that used to be N600, 000 when we were selling at N400, N450 rate to one dollar is now going for between N800, 000 and N1 million, so for those ones now at N800,000 to N1 million is the exchange rate that is causing those ones.
The closure of the airspace for now, I don’t know how long is going to be and I don’t know the alternative arrangements the airlines are going to make, if the alternative arrangements is going to bring about an increase for now that avoiding Niger has not brought about any increase in fares by any airline.
“The increase we are experiencing is just because of the fluctuation of the currency of dollars, if I gave you a fare at the rate of 743 yesterday and today it’s at the rate of 810, what do you think is going to happen to that fare, the fare I gave you for 800 yesterday at 743 and today is 810 that fare will automatically be N950, 000 to N1million.
Then tomorrow if it goes back to N750, it will drop to about N900,000, so that’s what we have been experiencing and because of the I $ E window, the rate changes everyday so as travel agents that one of the advantages our customers have.
“Fares are not valid, if somebody gives you fares today, that price will not be the same tomorrow and it won’t be the same thing next tomorrow because the cost of tickets are now changing on a daily basis because the rate changes on a daily basis. It goes very high sometimes it comes down. So far since this I $ E window started, the lowest it has gone is 742 rate to dollar and the highest so far is 805 if I can remember. Let’s keep our fingers crossed and hope we don’t wake up one day bad it’s 900.
“The analysis of economy class being 4 million, N5 million is not true. Yesterday I checked for somebody going to Antigua on BA which is very far and it was N3.2 million which will make you pass through London and America. BA to London is 820,000, its available but affordability is another thing. It’s vein fluctuating between N820,000 and N850,000 direct from Lagos or Abuja to London and it’s not N4 million”
For now diversion of flights from Niger as at today has not affected the cost of fares what has been affecting the fares is the rate of exchange that changes on a daily basis, so fares change everyday. The highest economy is N3.2 million. The airlines have released low fares.
The highest are still there but there is now low fares of N800,000, N900, 000 to 1.5million. Today direct flight to London from Lagos on the highest economy is N3.2million and the lowest is about N950,000 at the rate of exchange today is 782.”
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