It is no longer news that the management of Nigeria oldest aviation company, Aero Contractors Airline, has slashed its air fare to the minimum of Eighty Thousand Naira Only (N80,000) across all its destinations since the beginning of December 2024.
The airline said it took the initiative after considering the current economic situation Nigerians are passing through and the spirit of giving far more important than the economic gain accruable to it.
Speaking to journalists at a media briefing held at the airline’s office, Murtala Muhammed Airport, Lagos on Tuesday
the Managing Director of the airline, Capt Ado Sanusi made this known why speaking to journalists at a media briefing held at the airline’s office, Murtala Muhammed Airport, Lagos on Tuesday.
“Regarding the issue of reducing fares, we have looked at the market. We have seen a surplus capacity. As I said, we are not operating in isolation. I believe you are aware that at least about ten aircraft have entered the market. We have also studied the economic situation of the country. We are not insensitive to the economic hardship that is going on. And in the spirit of Christmas, which is the spirit of giving, we have decided to reduce our prices.
“We are still going to be profitable. We are not reducing our prices where we would not be profitable. Everywhere in the world you see there are Christmas sales, there are summer sales. There are sales during holidays.
“The reason is to give back to your customers, to your loyal customers. I believe we should start doing that. We do not intend to increase capacity. We have two to three aircraft that will be flying. And we intend to continue to modestly be reliable to our destinations,” Sanusi explained.
He continued, “Yes, I said if there is so much demand, you naturally increase the prices. But in this festive season of giving, I don’t think we should apply that economics. I think we should give back to the customers on their roads.”
On whether the airline considered reactions of other airlines before taking the initiative, Sanusi responded: “We understand we are not operating in isolation and we do understand that there are a lot of airlines that have deepened in capacity, which is good for the market. We intend not to do that. We intend to maintain our fleet size of about three. We intend not to increase our routes. As for the investment, what I project for Aero Contractors is ten-fleet for ten aircraft operations.”
The new fare, Sanusi said, will last till the end of January, when customers are expected to brace up for another round of fare slash for Valentine celebration.
On the economic status of Aero Contractors Airline, Sanusi hinted that the airline has been brought out of its very precarious position, stabilised and undergoing recovery session, makung it attractive to potential investors who are expected to come on board.
“In a milestone in Nigeria’s aviation industry, Aero Contractors marked a turnaround with 14 per cent profit, signalling the airline’s recovery. The company, which had faced financial challenges for years, has transformed from its negative 69% position in 2022 into a modest year-to-date profit of 14 percent.
Speaking on new investors for the carrier, he suggested that for the airline to be very, it requires 10 aircraft.
He however said that the decision on what the new investors want for the carrier as regards the number of airplanes that would determine the future of the airline.
“It depends on whether he is going to lease those aircraft. It depends on whether he is going to buy those aircraft. And it depends on what kind of aircraft he intends to buy. But we can only advise. And the advice is this company will go back to its rightful position with ten aircraft flying,’ he said
