By Matilda Ikediobi

International Air Transport Association, IATA, has warned that without a clear route development strategy, both existing and newly built airports across the country could become underutilised and drain government finances.

IATA said while competition among these airports could drive route development, airport operators would need to partner with airlines to ensure viability.

Area Manager & Head of Account Management, West & Central Africa, Dr Samson Fatokun, said this in Lagos at the Federal Airports Authority of Nigeria, FAAN, National Aviation Conference 2025 themed: ‘Elevating the Nigerian Aviation Industry through Investment, Partnership and Global Engagements.’

His words: “We are having airports being built in almost every state. Why do these governors want airports? They want airports in their states for connectivity and access, so that when investors come, they can land directly at their airport, trade can develop and cargo can move. They want access and connectivity. Some years ago, all the airports in Nigeria were government owned or managed by FAAN, but today, that is no longer the reality.

“We now have FAAN-managed airports. We have state-owned airports. We have concessioned airports. The situation is changing, and another layer that is about to emerge is that maybe in two years, we will have, for the first time, in Nigeria, a city with multiple airports, Lagos. How do we make all these airports profitable?

“What we did not have before is competition among airports. That will generate competition among them. For example, the Ogun State airport wants to compete for the same market in Lagos. They want to have that piece of the cake. Competition now will drive route development. Each person needs to get the airlines so that they can be viable.

“If you don’t have a strategy, a well-planned route development strategy, your airport will be moribund and continuously be a drain on the coffers of government. That is why connectivity and route development is crucial for both the existing airport and the new airports. 

“The credibility and survival of all these numerous airports depends squarely on the quality of the route development strategy that those airports and their owners have.”

Yuletide ticket price spike wrong business model – Aero MD

Less than two months after some domestic airlines raised ticket prices to the South-East and South-South regions ahead of the Yuletide, Managing Director/Chief Executive Officer of Aero Contractors, Capt Ado Sanusi, has faulted the approach and described it as a wrong business model.

Sanusi said although airlines adjust fares based on demand and supply, increasing ticket prices during peak season was unfair to travellers.

Sanusi, in a chat with Vanguard, said: “Airlines have more demand for tickets during the Yuletide, so they feel that they can increase the prices so that the highest bidder can pay for these tickets.

“Personally, I believe that is a wrong business model. I believe that it is wrong to increase prices during the Christmas period. I do understand it is basic Economics 101 because supply and demand is a factor. When supply is low and demand is high, prices go high. When demand is high, supply is constant, prices still go up.

“That is the economics of the whole thing. I believe airlines should have a way of managing the supply and demand through what we call booking in advance, opening fare buckets and properly managing inventory, which is good.”

Recently, Vanguard reported that Nigeria’s largest airline, Air Peace, had jacked up its one-way economy ticket from Lagos to Asaba in Delta State by 131 per cent, as well as Lagos to Enugu and Benin in Edo State.

Findings also revealed that United Nigeria also increased its one-way economy ticket from Lagos to Enugu to over N300,000, Lagos to  Owerri in Imo State and Asaba in Delta State, simultaneously.

Trustee member of the Airline Operators of Nigeria, AON, Roland Iyayi, had justified the increase, telling Vanguard that anything about pricing was an economic consideration. 

Iyayi said: “We look at it from the standpoint of demand and supply. There is also a need to consider all the factors involved. For the South-East, during a peak period, traffic is typically one way. What it means is that the demand is usually in one direction. If an airline takes maybe 100 passengers to that destination, it comes back with maybe about 20 passengers.

“Now, because the price is in one direction, the price of each seat has to be priced in such a way that the yield from one direction would fairly cover the operating costs. What happens around that period (Yuletide) to scheduled airlines is similar to the structure adopted by charter airlines.”

Boeing, Ethiopian Airlines deepen partnership with new deal

Africa’s largest carrier, Ethiopian Airlines, has concluded plans to purchase 11 additional 737 MAX jets from aircraft manufacturer, Boeing. 

The agreement for 11 B737-8, signed at the Dubai Airshow, would enable Ethiopian Airlines to grow its regional and international networks and expand its Addis Ababa hub. 

Speaking on the development, Ethiopian Airlines Group Chief Executive Officer, Mr Mesfin Tasew, said: “We are thrilled to be announcing our agreement with Boeing for additional11 B737-8 airplanes today during Dubai Airshow. The order will support our growth plans that we have set as part of our vision and strategy. We are happy that our partnership with Boeing continues to grow over the years and we look forward to flying Boeing airplanes for years to come and that we will continue to serve our customers by bringing them high performance airplanes with passenger comfort.”

Meanwhile, Boeing Senior Vice President of Commercial Sales and Marketing, Brad McMullen, said: “Ethiopian Airlines’ commitment to expand its 737 MAX fleet underscores its leadership in Africa. Our new agreement also strengthens our nearly 80-year partnership with the airline and region. We are proud that our efficient and versatile airplanes will continue to play a pivotal role in Ethiopian Airlines’ growth as they further connect the African continent and the world.”