Keyamo Plans to Help Airlines Get Cheaper Planes to Reduce Ticket Prices

Festus Keyamo, Nigeria’s Minister of Aviation and Aerospace Development, has announced plans to assist domestic airlines in acquiring aircraft at more affordable rates, aiming to reduce the cost of air travel.

This announcement comes in the wake of the Federal Competition and Consumer Protection Commission’s (FCCPC) decision on December 1 to investigate allegations of exploitative pricing practices within the aviation sector.

The investigation focuses on Air Peace Limited, a major Nigerian airline accused of significantly hiking prices for advance bookings on specific domestic routes.

Air Peace has countered these allegations, labeling them as damaging and unjust.

Keyamo explained that the aviation sector is heavily impacted by exchange rate fluctuations, which significantly affect operational costs, including routine maintenance like changing a tyre bolt.

He stated, “What we are therefore doing is to ensure that we expose them to the market across the world where they can access aircraft on very favorable terms. This will have a positive impact on ticket prices and their operational costs.”

He attributed these efforts to the government’s adoption of the Cape Town Convention (CTC) practice direction, which facilitates domestic airline operators’ access to aircraft on dry lease terms.

This initiative was supported and signed into practice by the federal government on September 12.

Further addressing the aviation sector’s challenges, Keyamo revealed that Nigeria will participate in a major global aircraft meeting in Dublin, Ireland, from January 12 to 18.

“I’m leading the delegation, which will include all the major aircraft financiers and leasers. For the first time, they have invited Nigeria because of the efforts we have made to help them access these markets globally,” he said.

This increased international cooperation has boosted Nigeria’s compliance score from 49 percent to 75.5 percent, marking a significant improvement in the country’s aviation industry standards.

Additionally, TheCable reported on October 29 that Boeing plans to host a forum at the Airline Economics Conference in Dublin to introduce Nigerian airline operators to foreign investors, further indicating growing international interest in Nigeria’s aviation sector.