Platforms Africa, in its solution journalism series hosts Top Aviation expert, Journalist and Author, Wole Shadare where he opens up on air rage, higher ticket rate, the Wigwes, and supreme price they paid: Key things to know about Aviation’s State. Excerpts;
What is meant by Cheap Inventory Tickets?
This is very tricky but I will break it down for many to understand. Airline ticket pricing is very technical. If you have boarded a plane to Lagos from London, it is assumed that all passengers on economy or Business class cabins pay the same fare. Far from it.
Airlines have different categories of tickets for the same economy seat and people in the same cabin or someone sitting nearest to you has not paid the same fare as you. For the economy seats, airlines start from the lower fares until it graduates to the highest.
For example, they make 40 seats that goes for $100. After those seats are sold, they go to the next which may be $150 for another 40 seats. It graduates to the next and next until it gets to $400 or more. These are called inventories. In the case of the foreign airlines operating to Nigeria, they closed these lower inventories and offered the highest inventory which made tickets to be very expensive and unaffordable.
They cannot be blamed because of their trapped funds which hit nearly $800 million in Nigeria before the CBN released the funds. They reasoned that the devaluation of the Naira and their funds that were trapped in the country made it expedient for them to cancel the lower ticket inventories as Naira was not stable. They reasoned also that by the time they get their money, depreciation would have set in and which would have made them lose about half of their revenue.
The government had since settled them and there was no need for them not to unblock the lower inventories
READ ALSO
Independence, A Grace Or Mistake? Nigerians Speak On Platforms Africa e-Discourse
Why, How ECOWAS Failed In Its Essence As A Regional Body – Expert
Between Sugar And Killer; Health Risks, Tips To Save You From Diabetes
Why do the airlines keep this as a secret?
It is actually not a secret. It is market strategy and because of the fierce competition in the airline business
The breakdown is this. There are many fare rates which means that once the allocated number of seats for each rate finishes, they go to the next and next and next. While this is done, the fares are marginally going up.
What it means is that it gives a lot of people the opportunity to get cheaper fares unlike when it is just one expensive inventory, thereby forcing people to buy at that cost without options
What is the present state of the aviation industry Africa?
The current state of aviation in Africa
Africa’s air transport is not as developed like what we have in Europe, United States and Asia because of some factors like infrastructure, poor state of economies in the continent, low propensity to fly despite over 1 billion population, government policies that are very detrimental to the sector as a whole and lack of full liberalization of the sector.
Expectedly, there is a large variation across countries in the propensity to fly and the GDP of each is an important factor. Despite representing 15% of the world’s population, the 230 airlines present in African airspace operate just 5.5% of the world’s commercial passenger and freighter aircraft.
Additionally, the average age of the African airlines fleet is the oldest of any world region – 17 years versus 13 years for the global average.
READ ALSO
Hamar: African Tribe Where Wives Beg Husbands To Flog Them For Love, Loyalty
Dinka Ethnic Group: Tales of World’s Tallest Tribe
Ovahimba and Ovazimba: African Tribes Where Free Sex Is Offered To Guests
With the surge in the cost of air tickets , is it safe to say that air transport is getting out of reach for the poor?
The forecast and significant population growth will deliver more demand for air travel. A study prepared for the International Air Transport Association (IATA), the trade body for airlines, points to current demand being lower than it could be because of barriers restricting intra-African air markets.
The Continent has been slow to liberalise their intra-African air markets. It has been shown, most starkly across the European Union, that liberalisation stimulates demand for air travel, both intra and intercontinental. It creates competition and, along with it, service improvements and lower costs that engage business and leisure flyers.
With the surge in the cost of air tickets , is it safe to say that air transport is getting out of the reach of the poor?
It is really getting out of the reach of the poor because of economic downturn both for local and international travelers. People are cutting down on their frequent travels and spending money on more important things. The economic situation is the reason for that.
What is actually responsible for the skyrocketing price of air tickets?
A lot of factors are responsible. Cost of operation of aircraft, skyrocketing price of jet fuel which has risen by 500% in the past three years, inflation, lack of infrastructure, high cost of aircraft insurance and the high risk tag of Africa for aircraft lessors.
Is this peculiar to Africa air space ?
It is peculiar to Africa because Africa is poor. Aircraft acquisition is very high, high interest on loans compare to Europe which is about 1% unlike in Nigeria where loan interest is 25%. How can airlines in Africa be profitable under such situation? You are loss making from day one.
Air transport is really getting out of the reach of the common man because of the economic situation of things. The people would rather use what they have for feeding and taking care of more basic needs than the luxury of air travel.
READ ALSO
Tears of A Wife Can Cure An Aggressive Husband – Study
One In Five Players At Women’s World Cup Suffer Online Abuse – Study
Air Is a New Source of Electricity – Study
Many still have the fear about safety on board an aircraft. Is air transport safe at all?
Air transport is the safest when you compare it to road transportation. Even the IATA records shows that with Africa making huge improvement despite challenges. We need to tell people that air transport is about the safest.
Is it normal to feel tensed on board an aircraft ?
It is very normal to feel tense during flight for those who have phobia for height or motion. That is the reason you have cabin crew who serve you refreshments and speak with you just to calm us down that all is safe. No problem.
What preliminary information can you share with us about the plane crash in the US that killed former MD of Access Bank, Herbert Wigwe, wife, and son?
The Wigwe’s death is a sad reminder that life is indeed short. Our thoughts are with the family. May it never happen again. The Igbo say it better, “Ozoemena (May it never happen again)
The Airbus Helicopter EC130B4, registered as N130CZ and operated by Orbic Air, LLC, under Part 135 regulations for on-demand flights, outlines crucial details surrounding the tragic incident.
Departing from Bob Hope Airport in Burbank, California, the helicopter embarked on a journey to Boulder City Municipal Airport in Nevada via Palm Springs International Airport.
In the preliminary report shared by the NTSB, it was revealed that NSIB investigators, in collaboration with other relevant authorities and stakeholders such as David Gerlach FAA, Steve GouldOrbic Air LLC, Vincent EcalleBureau d’Enquetes et d’Analyses, Seth Buttner; Airbus Helicopters, Bryan Larimore; Safran Group conducted on-site examinations and analysis of available data to determine the factors contributing to the accident.
Initial findings suggest that the helicopter suffered catastrophic damage upon impact, resulting in fragmentation of major components.
However, during its flight, adverse weather conditions characterised by rain and a mix of snow, were encountered, as reported by witnesses, hinting that reports from law enforcement and eyewitnesses also indicated that several individuals travelling along Interstate 15 (I-15) observed a “fireball” in the area, prompting calls to emergency services.
The report also noted that subsequently, the wreckage of the helicopter was discovered in the high, mountainous desert and scrub-brush-covered terrain near Halloran Springs, California.
Analysis of the accident site revealed a scattered debris pattern about 300 ft along a 120° magnetic, indicating a trajectory from an initial impact point which was a 1.5 ft deep, 12 ft long and 10 ft wide ground crater, containing fragments of the right landing gear skid, cockpit wiring, and cabin floor structure.
The right skid step protruded upward at a 45° angle at the extreme eastern edge of the ground crater.
It clearly stated that the preliminary report is not the final determination of the cause of the accident, stressing that additional investigations and analysis are required before any conclusions can be drawn.
Some experts who described chopper flights in the US as peculiarly unsafe have also mentioned the route that Wigwe’s pilot used, as particularly unsafe. What is your view on this?
I think the US Federal Aviation Administration (FAA) should increase oversight on chopper operations. It is becoming unsafe. I read that the FAA is taking a holistic look at chopper operations. Air travel is highly liberalised in the US particularly General Aviation. You can buy your aircraft and chopper and you are good to fly.
As an aviation journalist, what other information will you like to share on the crash?
Until the final is out, it will be premature to have a view. We are taught that in aviation reporting. However, everything points to lack of due diligence.
What are the tips for someone to overcome airfright?
Just try to be calm and know that air travel is safe.
I want to take you back to the Cheap Inventory Ticket issue. Why did it take so long for the Nigeria Civil Aviation to order the foreign airlines to use this in Nigeria?
I think the NCAA and NANTA, travel agents body were in talks with the airlines and the discussions dragged on for so long until the government settled the liabilities of the carriers
Again, the airlines were smiling to the bank until the aviation regulatory tried to put a stop to their high fares occasioned by the closure of lower fare inventories.
From news reports from Nigeria suggests that foreign airlines are making a killing. Could this be the case in other African countries?
Not exactly. Fares in this market are just too high. The yield is good for the carriers. You can imagine Lagos to London which is the same equidistance of six hours with London-Accra cost far more in Nigeria than in Accra of more than $500. This has made many Nigerians travel to Togo, Benin, and Accra to travel
They pay far less than we pay here in Nigeria.
Intra Africa travel is far more expensive than travels outside the continent.
This edition of e-Discourse, a weekly event organised by Platforms Africa, a forum created by award-winning African journalist, Adeola Yusuf, is moderated by Accra, Ghana-based veteran journalist, Francis KOKUTSE
