The loss of three competitors, Dana Air, Air Nigeria and short-lived start-up First Nation Airways, in Oct-2012 resulted in air fares surging to record levels in a country where air travel was already among the costliest in the world.
Arik and Aero dominate the market with 58% of total domestic and international seat capacity.
A low return domestic air fare between the main centres of Lagos and Abuja on Arik Air, costs NGN54,503 (USD348.71) for a flight of little more than an hour each way. Arik’s pricing power – and apparent lack of revenue management capability – is further demonstrated by the fact that the fare is the same regardless of whether the booking is for travel the next day or bought four months in advance.
Poor surface infrastructure, however, means most Nigerians have little choice than to travel by air – or not to travel at all. Some are reportedly forced to pay bribes to touts, especially in the capital, Abuja.
Arik offers 93 international services a week and 492 domestic services against Aero’s 24 international and 417 domestic services. Togo’s ASKY is Nigeria’s second largest provider of regional services offering 52 frequencies a week to Lagos and Abuja.
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