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Business News of Wednesday, 2 November 2011

Source: thenationonlineng.net

Nigerians now travel through Ghana for lower fares to Europe

At a time players in the aviation industry are complaining of the lopsidedness in the Bilateral Air Services Agreement between Nigeria and many countries of the world, major European mega carriers are charging higher air fares from major Nigerian cities including Lagos and Abuja as against Accra, the Ghanaian capital to London and Frankfurt on first class, business class and economy tickets.

A check on major airlines reservation system reveal that Nigerian passengers pay more to travel to European cities including London and Frankfurt if they book their flight from Lagos and Abuja as opposed to booking their flight from the Ghanaian capital Accra.

According to an aviation expert, Mr Chris Aligbe, who is chief executive officer of Belujane Konzults, booking a first class ticket on the Lagos - London route on British Airways on a one way fare will cost a passenger about $5,408 whereas the same booking for a passenger from Accra- London on British Airways for a way ticket which stands at $2,399.

Same flight on British Airways between Abuja-London on one way will cost passengers $5,288.

He further explained flight booking between Lagos - Frankfurt on German carrier: Lufthansa Airlines will cost passengers $5,356 for a one way first class ticket, while same flight on the same airline between Accra- Frankfurt will cost passengers $2,399.

On Royal Dutch KLM Airline a one way first class ticket will passengers between Lagos - London $4,236, while same flight between Accra- London will cost passengers $3,787.

The lower fare offering according Aligbe is a strategy by the foreign airlines to get niche passengers on the first class cabin from Nigeria, only to fill it up with lower fare passengers from Ghana.

Investigations further revealed that Nigerians passengers are paying more for business class seats from Lagos and Abuja to major European cities including London and Frankfurt as opposed to Accra.

On British Airways one way business class fare passengers from Lagos - London will cost $3,685, as opposed to flight booked from Accra - London going for $2,049 for one way fare.

He further explained that Germany Airline Lufthansa business class one way booking from Lagos- Frankfurt goes for $3,981, whereas the same business class one way booking between Accra- Frankfurt goes for $2,105.

On the economy seat, passenger booking between Lagos - Frankfurt cost $749, as opposed to same flight one way economy between Abuja- Frankfurt, which goes for $711, but same flight booking from Accra- Frankfurt goes for $1,175.

On Royal Dutch Airline; KLM one way economy booking between Lagos - London cost $1,332, whereas between Accra - London on one way economy goes for $1,284.

Same one way economy flight between Lagos - Frankfurt on KLM cost $1,332, whereas same flight between Accra- Frankfurt on economy cost $1,333.

Aligbe explained that such fare offering is already positioning the Kotoka International Airport, Accra, Ghana as a hub for West Africa, with its lower fare offering by foreign airlines.

He explained that many Nigerians now travel through Ghanaian airports where they could get cheaper fares to get to their destination.

According to Aligbe, the only way for the Nigerian government to correct this abnormally is to engage the foreign airlines such that the lopsidedness in fares could be addressed.

He said: "The threat to Nigeria from Ghana is a very serious threat. Ghana knows that it does not have the population; they know that the market is in Nigeria.

"Most of the industries in Nigeria have relocated to Ghana, but the market is here. The airline industry market within the sub-region is here in Nigeria.

"Nigerian airlines are dominating the west coast and Ghana wants to exploit this dominance and turn it to its advantage.