The price war initiated by Arik Air for economy class passengers travelling from Lagos to London, is constituting a big threat to the dominance of British Airways and Virgin Atlantic Airways on the lucrative international route.
Arik commenced non-stop daily flights from Lagos to London Heathrow Airport late last year, and immediately slashed the prices of economy and premium class tickets thus hurting BA and VAA, which hitherto flew the bulk of London terminating passengers.
According to a review undertaken by Financial Derivatives Company (FDC), a Lagos-based economic research firm and presented at the July Executive Breakfast Meeting of the Lagos Business School, “the price war on the route initiated by Arik is hurting BA and Virgin Atlantic’s economy passengers and London terminating traffic.”
The review, a comprehensive summary of global economic and business indicators and events for the month of June and presented by Bismack Rewane, FDC’s managing director, indicated that BA has started an aggressive response to the Arik threat.
“BA is responding aggressively in the corporate market. It is offering corporate discounts in the premium classes (Business and First Class cabins) and on select routes. It has intensified customer service initiatives and interface,” the review noted.
Further investigation by the source revealed that the Arik threat is more pronounced in the battle for budget travellers (Economy Class passengers), where the local airline charges N174,000 (about $1,160 – taxes inclusive) for a return ticket to London and has become a major attraction.
On the contrary, BA’s cheapest Economy Class return ticket to London is $1,460 while VAA’s cost $1,432.
Arik’s cheapest Business Class return ticket to London is N500,000, about $3,333. To fly BA, it cost $4,825 while VAA charges $3,799.
Arik uses a brand new Airbus A340-500 long-range aircraft on the Lagos- London route offering Business Class passengers flat beds, individual television monitors, along with other in-flight entertainment comparable to any airline in the world.
Comments
03/11/2009 at 2:50:41 PM
Wale Ladiposays
Nice one Arik, una do well, keep it up.
30/10/2009 at 9:30:43 AM
Dansays
Well done, I hope they keep providing efficient service, like my brother Akin Olowo said,"Nigeria factor" only time will tell.
22/10/2009 at 10:35:43 AM
Ayeni Oluwatoyinsays
Arik is doing a job,and other player crop in,it wil b a massive growt for the airline industry and nigerian as a whole to patronise our indigenous airline
04/10/2009 at 7:03:51 PM
Raymondsays
Well done Arik Airline!. Keep going from strength to strength.Long over due about time we now have alternative and better competitive services to those arrogant european airlines.
31/07/2009 at 10:11:27 AM
Kunlesays
Hope they are not going to change to the Nigerian way soon. Anyway,let's remain optimistic
26/07/2009 at 10:32:32 PM
Ngozisays
Good news! I encourage Arik to keep offering more affordable air fares from your company..........
22/07/2009 at 11:57:41 AM
Yomi Olokosays
Nice one Arik, but it still costs me nearly GBP600 during the low season. Why is it none of the airlines can offer us the rates for the London - New York route which is about the same flight time to the London Lagos route but during the low season you can pay less than GBP400?
21/07/2009 at 5:19:19 PM
Jidesays
I had taken this story as normal PR stunts always played by Nigerian companies and I therefore took it with a pinch of salt until I personally confirmed this story yesterday. It is real. This utilitarian initiative by ARIK should be emulated by other indigenous companies. Bravo Arik, Bravo.
20/07/2009 at 12:52:12 PM
Akin Olowosays
Quite impressed with what Arik has achieved, but my major concern is complacency. No disrespect;Nigerian factor might crop in if care is not taken.
19/07/2009 at 1:04:03 PM
Charles Okerekesays
Fly on Arik, You are the only Nigerian Airline that can stand shoulder to shoulder against those colonial airlines.....Fly on
19/07/2009 at 11:33:41 AM
rukayat adebisisays
Nice one! Arik should maintain its present standard and continue to offer juicy promotional fares, especially for students in order to continoussly beat its competitors like BA and VIRGIN.
18/07/2009 at 5:33:11 PM
Kayodesays
Excellent! What Nigerian government failed to achieve is what Arik air has achieved. Nigerians please, please lets give our support by patronising Arik Air.......
18/07/2009 at 10:11:55 AM
chibuzo says
Arik never pinch BA and Virgin well well. I think BA and Virgin should suffer more than the price slash by Arik. So they think the lucrative route of Lagos-London is their birth right? Na lie! Fly on Arik and like Ronke advised Arik should not bring the Nigerian style of running business with time o.
18/07/2009 at 10:05:29 AM
Ronke Akeredolusays
Good news! I'm very sure Arik has won the price battle, no matter the effort from others; I doubt if they could match the rate Arik is going now. I flew Arik to Naija recently and the experience was interesting, especially the beautiful interior of the aircraft. I say bye bye to ill-treatment of Nigerians by British Airlines, especially BA. So I will continue to fly Arik bcuz is extremely Nigerian but Arik should not introduce the 'Nigerian factor' as they continue to grow.
The price war initiated by Arik Air for economy class passengers travelling from Lagos to London, is constituting a big threat to the dominance of British Airways and Virgin Atlantic Airways on the lucrative international route.
