Sequel to the adoption of a flexible exchange rate policy by the President Muhammadu Buhari-led administration, which was aimed at cushioning the huge pressure on the Naira and secure the Nation’s External Reserve, ticket fares for both Local and International Flights have increased astronomically.
Post-Nigeria, had earlier reported that the announcement of the adoption of a flexible exchange rate, had earlier triggered both negative and positive reactions.
Few weeks after the policy statement and adoption by the Central Bank of Nigeria, CBN, the Naira was devalued at the inter-bank exchange rate from N199/$ to N285/$.
Since the devaluation, domestic and International airlines have not really had it good with their operations, as customers have begun to complain that they can no longer afford airline tickets, due to the sporadic price hike.
Since most of the International airline transactions are dollar denominated, customers are almost paying double for their transactions.
The President of the National Association of Nigeria Travel Agencies, NANTA, Aminu Agoha, had lamented that the devaluation of the currency, if not quickly addressed, would weigh down on the airlines, as most of their activities are done in dollars.
He added, that the moment the value of dollar goes higher against the Naira, cost of air travels skyrocket in the country.
He said, “Well, if you ask me, the dollar is the determining factor of any business in Nigeria, particularly the aviation industry, where everything is dollar denominated.
“The fuel is dollar denominated, the maintenance of the aircraft is dollar denominated, the service charges and others.
“The moment the dollar starts going stronger against the Naira, definitely, the cost of air travels would go high and this is something that we as travel agencies cannot control. It is forces of the market; demand and supply.
“So, we cannot control that, unless if the government does something to bring the exchange rate down.”
According to news reports, a woman named Adeola Makanju, who wanted to fly to the United States of America, USA, received the shock of her life when she was given a bill of N1.2 million; in utter disbelief she asked the airline operator, “You can’t be serious. Are you sure this is for me?.
The operator in reply said, “Yes, madam.
That is their price now.”
That is their price now.”
Makanju, in total shock mingled with confusion, looked round the Murtala Muhammed International Airport, MMIA, terminal like she was seeing it for the first time.
Post-Nigeria, gathered that she had planned to go to the US, for a holiday for about 2 years, but could no longer afford it.
Presently, a return ticket to London via British Airways, BA, Economy class, is over N751,000, Business class over N2.8 million, while First class goes over N5.7 million.
For Ethiopian Airways, economy to London is over N1 million, Business class over N5 million.
Nigeria to France via same airline, Economy is over N2 million, while Business class goes for N6.025 million.
For Flying Emirates, economy to London is $1,358. Arik Airways, Economy to London is $2,029, While KLM is $1,617.
For South Africa Airways, Economy to US, Texas precisely is $2,149.61, Business Class is $7,620.07.
South Africa airlines to France by economy cost $2,207.79, while Business is $5,214.00.
Other Airlines such as Air France, Kenyan Airways, among several others, have also increased their flight tickets.
The over 50 percent hike according an Airline agent who spoke to Post-Nigeria’s correspondent, is occasioned by the recent devaluation, which has further weakened the Naira’s purchasing power.
Economy flight tickets from Abuja to Cape Town, which was N145,000; with South Africa Airways, is now going for over N200,000+.
For Arik Airline, Lagos to Cape town as at February this year was N85,000, but as at today, it is N170,000+.
Post-Nigeria further gathered, that if something drastic is not done to address the challenge, both Nigerians and Airlines operators will continue to suffer.
This by implication will further discourage and terminate both foreign and local business engagements and activities, thereby subjecting the economy to more woes.
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