- She further clarified that the addition of more economy seats, although more affordable, serves to elevate the average seats per departure, consequently resulting in reduced per-seat costs
In a bid to mitigate high operating expenses in the aviation sector, domestic airlines have taken measures to augment their revenue by expanding the number of available flight seats, accommodating more passengers.
Susan Akporiaye, President of the National Association of Nigeria Travel Agencies, explained that this new approach is a strategic response implemented by airline owners to enhance the capacity of their airlines amidst a decline in revenue.
She further clarified that the addition of more economy seats, although more affordable, serves to elevate the average seats per departure, consequently resulting in reduced per-seat costs.
She said, “Nothing has changed in the operating costs yet due to the fluctuating exchange rate, which is affecting our operating costs. The only thing that has changed is that airlines are beginning to release the lower seats now. Some of them have started releasing lower seats.
“Earlier, the airlines stopped selling off all the cheap classes and were only selling the expensive ones. The airlines had cut off all the cheap seats and were selling only the expensive ones because of the trapped fund issue but now that the rate of exchange is high. Most of them are releasing the cheap seats to get more revenue to remain afloat in the business.”
Reports said that aviation experts have expressed deep worries over the potential negative impact of the recent increase in airfares on the aviation industry occasioned by the scarcity of foreign exchange amongst other challenges.
Though the minister of Aviation and Aerospace Development, Festus Keyamo, had promised to resolve issues facing the sector, experts said poor implementation of policy regulation was a bane affecting the industry.
Meanwhile, the Chief Executive Officer, of Centurion Security, Group Capt. John Ojikutu, called for a thorough examination of the schoolcommercial addition sector by the relevant authorities so as to ascertain the financial health of all airlines.