International airfares out of Nigeria have recorded a further
rise following an increase in exchange rate for ticket prices by
the International Air Transport Association, OYETUNJI ABIOYE and
MAUREEN IHUA-MADUENYI report.
The international airfares from Lagos to various destinations
across the globe have recorded a further increase following the
announcement of a new dollar exchange rate for the sale of air
tickets.
The Switzerland-based IATA, the trade association representing
over 290 global airlines, reviewed the dollar exchange rate for the
sale of tickets for flights out of Nigeria from 305/dollar to
326/dollar about three weeks ago.
As a result of this development, international airfares out of
Nigeria, which are already on the high side, have risen further by
seven per cent.
Travel companies issuing international tickets in Nigeria
confirmed to our correspondent on Sunday that airfares had recorded
a further increase.
Although some travel agents expressed the hope that the
development would not affect sales volume, other felt some
cost-conscious passengers might choose to cancel proposed travels
owing to the rise.
A survey by our correspondent on Sunday showed that non-stop
return flights in the economy class from Lagos to some destinations
in the United States aboard the Delta Airlines, which used to cost
between N750,000 and N850,000 during the summer season, were being
offered between N850,000 and N940,000.
Non-stop return flights from Lagos to London, the United Kingdom
in the economy class on the British Airways and Virgin Atlantic,
which used to be between N350,000 and N550,000, had also up to
between N400,000 to N600,000 for the summer season.
Non-stop return flight in the economy class from Lagos to
destinations in South Africa, aboard the South Africa Airways,
which used to cost between N220,000 and N240,000, depending on the
timing, had gone up to between N230,000 and N250,000 for the summer
season.
Although airfares actually rose as a result of the increase in
the exchange rate for the sale of tickets from 305/dollar to
326/dollar, some travel agents said the development had made
foreign airlines to release some cheaper classes of airfares that
hitherto were blocked.
Unconfirmed sources said foreign airlines flying into the
country were not breaking even with the sale of tickets at
305/dollar.
The development, it was learnt, forced them to approach IATA to
increase the exchange rate from 305/dollar to 326/dollar.
Foreign airlines had allegedly blocked travel agents from
accessing some cheaper classes of seats for passengers.
However, the blocking of cheaper classes of seats was said to be
partly connected with the old problem of not being able to access
adequate amount of dollars from the Central Bank of Nigeria to
repatriate their naira revenue.
Travel agents said IATA agreed to increase the exchange rate on
the premise that airlines would unblock the cheaper classes of
seats.
The President, National Association of Nigerian Travel Agents,
Mr. Bernard Bankole, confirmed that foreign airlines had unblocked
some cheaper classes of seats for travel agents, following the
increase in the exchange rate from 305/dollar to 326/dollar by
IATA.
Bankole said, “Airlines have unblocked some cheaper classes of
seats that were not available for sale before now. For example,
flights to London that used to be N450,000 or N550,000 have come
down. We have flights of N350,000 on the British Airways, Virgin
Atlantic now. We now have Oscar class and Sugar class of seats that
can be bought for N270,000 and N280,000. IATA has increased the
exchange rate for the sale of ticket, but foreign airlines have in
turn opened the cheaper classes.”’
Airfares especially international travel tickets have witnessed
significant rise in the last two years following the depreciation
of the naira from 155/dollar to the current 326/dollar
official.
Currently, travel agents said the IATA rate had been fluctuating
between N325/dollar and N328/dollar.
The fluctuation in the exchange rate has in the last few years
forced some foreign airlines to shut down their services in
Nigeria. They included the United Airlines, which used to fly
between Lagos and Houston, and the Spanish carrier, Iberia. They
both left due to difficulties in converting proceeds from ticket
sales into dollars for repatriation.
A travel agent, who spoke on condition of anonymity, said the
problem had forced many travel agencies out of business.
“The fluctuation has been like this since the recession but we
are yet to get used to it. When it just rose to N200, a lot of
people were still travelling because you could still get tickets
for N300,000 to New York but since it rose further, many licensed
IATA agents have shut down. What keep many of us in the business
are the push and the belief that it will get better,” she said.
Culled: Punch
International airfares out of Nigeria have recorded a further
rise following an increase in exchange rate for ticket prices by
the International Air Transport Association, OYETUNJI ABIOYE and
MAUREEN IHUA-MADUENYI report.
The international airfares from Lagos to various destinations
across the globe have recorded a further increase following the
announcement of a new dollar exchange rate for the sale of air
tickets.
The Switzerland-based IATA, the trade association representing
over 290 global airlines, reviewed the dollar exchange rate for the
sale of tickets for flights out of Nigeria from 305/dollar to
326/dollar about three weeks ago.
As a result of this development, international airfares out of
Nigeria, which are already on the high side, have risen further by
seven per cent.
Travel companies issuing international tickets in Nigeria
confirmed to our correspondent on Sunday that airfares had recorded
a further increase.
Although some travel agents expressed the hope that the
development would not affect sales volume, other felt some
cost-conscious passengers might choose to cancel proposed travels
owing to the rise.
A survey by our correspondent on Sunday showed that non-stop
return flights in the economy class from Lagos to some destinations
in the United States aboard the Delta Airlines, which used to cost
between N750,000 and N850,000 during the summer season, were being
offered between N850,000 and N940,000.
Non-stop return flights from Lagos to London, the United Kingdom
in the economy class on the British Airways and Virgin Atlantic,
which used to be between N350,000 and N550,000, had also up to
between N400,000 to N600,000 for the summer season.
Non-stop return flight in the economy class from Lagos to
destinations in South Africa, aboard the South Africa Airways,
which used to cost between N220,000 and N240,000, depending on the
timing, had gone up to between N230,000 and N250,000 for the summer
season.
Although airfares actually rose as a result of the increase in
the exchange rate for the sale of tickets from 305/dollar to
326/dollar, some travel agents said the development had made
foreign airlines to release some cheaper classes of airfares that
hitherto were blocked.
Unconfirmed sources said foreign airlines flying into the
country were not breaking even with the sale of tickets at
305/dollar.
The development, it was learnt, forced them to approach IATA to
increase the exchange rate from 305/dollar to 326/dollar.
Foreign airlines had allegedly blocked travel agents from
accessing some cheaper classes of seats for passengers.
However, the blocking of cheaper classes of seats was said to be
partly connected with the old problem of not being able to access
adequate amount of dollars from the Central Bank of Nigeria to
repatriate their naira revenue.
Travel agents said IATA agreed to increase the exchange rate on
the premise that airlines would unblock the cheaper classes of
seats.
The President, National Association of Nigerian Travel Agents,
Mr. Bernard Bankole, confirmed that foreign airlines had unblocked
some cheaper classes of seats for travel agents, following the
increase in the exchange rate from 305/dollar to 326/dollar by
IATA.
Bankole said, “Airlines have unblocked some cheaper classes of
seats that were not available for sale before now. For example,
flights to London that used to be N450,000 or N550,000 have come
down. We have flights of N350,000 on the British Airways, Virgin
Atlantic now. We now have Oscar class and Sugar class of seats that
can be bought for N270,000 and N280,000. IATA has increased the
exchange rate for the sale of ticket, but foreign airlines have in
turn opened the cheaper classes.”’
Airfares especially international travel tickets have witnessed
significant rise in the last two years following the depreciation
of the naira from 155/dollar to the current 326/dollar
official.
Currently, travel agents said the IATA rate had been fluctuating
between N325/dollar and N328/dollar.
The fluctuation in the exchange rate has in the last few years
forced some foreign airlines to shut down their services in
Nigeria. They included the United Airlines, which used to fly
between Lagos and Houston, and the Spanish carrier, Iberia. They
both left due to difficulties in converting proceeds from ticket
sales into dollars for repatriation.
A travel agent, who spoke on condition of anonymity, said the
problem had forced many travel agencies out of business.
“The fluctuation has been like this since the recession but we
are yet to get used to it. When it just rose to N200, a lot of
people were still travelling because you could still get tickets
for N300,000 to New York but since it rose further, many licensed
IATA agents have shut down. What keep many of us in the business
are the push and the belief that it will get better,” she said.
Culled: Punch
Read more https://nairalaw.com/exchange-rate-foreign-airlines-raise-fares/