It is obvious that the entrance of Air Peace in that route has threatened the profit margins of these foreign airlines.
It is likely that as a result of this, they would try to frustrate Air Peace and take them out of business.
This will be easy for them to do because they have the cash reserve they need to start a "price war".
Their goal perhaps, is to reduce the price to the barest minimum and increase it 20 times over, moment they succeed in crippling Air Peace.
Some of these these foreign Airlines were charging ₦15 million to ₦17 million for business class, for the Lagos-London route. Air Peace reduced the price to 4 million Naira for Business Class, and started charging ₦1.2 million for economy class.
Now, some of them are selling their flight tickets for ₦700,000.
According to Allen Onyeama, the CEO of Air Peace, some of the foreign airlines slashed their price to $100 which is currently ₦123,200.
Air Peace can't win the prize war. They can't crash their prices any lower. They need to make profit.
So, what should Air Peace do?
For one, Air Peace should leverage their strengths. Do they offer a superior in-flight experience, more legroom, or better entertainment options?
They now offer amazing Nigerian meals during flight. They should promote these aspects.
Secondly, they should focus on exceptional customer service. This could include shorter check-in lines, priority boarding for frequent flyers, or improved in-flight assistance.
They should also revamp their loyalty program.
I suggest they start offering bonus miles for consistent customers and partner with Lagos and London hotels to offer flight + hotel packages at competitive rates.
If they start offering student discounts, family travel packages and senior citizen deals - they will capture different range of customers.
Thirdly, how about running a 'Fly Nigerian Campaign' that emphasizes supporting a homegrown airline? Tell Nigerians that Air Peace belongs to them.
They should highlight job creation for Nigerians and contribution to the national economy. And then partner with Nigerian celebrities who have massive followers on social media.
Air Peace should actively engage with customers on social media and address their concerns.
That way, if the foreign Airlines run out of their cash reserve because of low patronage, they would have no option but to end the price war.
In business, don't engage in price war. Rather, focus on satisfying your customers. As an entrepreneur, I'm also learning a lot from this.
Now, do you tow the line of the writer? Or what do you suggest Air Peace need to do to keep in the game?
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