Air Peace’s entry into the Lagos to London route has disrupted the market, prompting foreign airlines on the same route to smartly adjust their pricing with over a 58% serial slash, adopting dynamic pricing strategy akin to surge pricing. This strategy of the foreign airlines aims to maintain competitiveness amidst Air Peace’s price cut upon entry into the route. From the outset, it is clear that it is a war of market strategy and not essentially a moral or humanitarian issue.
As a result, there has been incessant outcry, subtle blackmails and emotional appeals with widespread calls for government intervention to support Air Peace in its endeavour, including guaranteeing loans and utilizing diplomatic channels. Others have equally advocated for mass by-cut of foreign airlines in favour of Air Peace to serve as a lesson against monopolistic tendencies.
Indeed, the ongoing conflict between foreign airlines and Air Peace revolves around the intricate deployment and dissection of business strategies. Essentially, business strategy encompasses three fundamental elements: designing a coherent plan to achieve a set target, anticipating potential counter-strategies from competitors, and devising contingency strategies to effectively contend with competitors’ strategies. In this dynamic interplay, each party demonstrates its strategic acumen while simultaneously articulating the core demands of effective strategy: foresight, adaptability and competitive positioning.
It is unrealistic to think that from their scenario planning, Air Peace did not anticipate potential reactions from foreign airlines, such as leveraging extensive networks like Star Alliance (with the slogan: Together. Better. Connected), upon launching the Lagos-London route. Air Peace should have envisioned the competitive landscape, including pricing strategies like those of foreign airlines, aiming to maintain dominance in Africa’s largest market. While Air Peace likely did not expect foreign airlines to withdraw from the London route, strategic preparation could have mitigated the impact of their pricing maneuvers, which is a typical business strategic move.
In any case, by conducting a simple SWOT analysis, Air Peace can strategically position itself for success. Internally, the airline’s strong brand presence in Nigeria’s local routes is a key strength that can be leveraged to address weaknesses like its limited route network across the globe. Then, recognising external opportunities such as the growing demand for domestic and regional travel in Africa allows Air Peace to tailor its strategies for maximum market penetration and growth. By doing so, the airline can carve a niche for itself across Africa, effectively competing in the global market while also focusing on its London route.
SWOT analysis works by identifying internal strengths and using same to remedy observed weaknesses to enable one take advantage of external opportunities while keeping threats and competitors on check.
Accordingly, Air Peace should embark on a review of its grand strategic objectives and leverage its vast network of over 20 airports across Nigeria to gain a competitive advantage. Rather than relying solely on the Lagos hub, Air Peace can offer passengers the convenience of boarding from their local airports and seamless transfers through Lagos, attracting a significant portion of non-Lagos originating travelers seeking cost-saving measures and streamlined check-in procedures.
Why should I leave Kano, katsina, Kaduna or Enugu, Imo and Abia and environs to Lagos just to board a London flight if I can board same from Kano or Enugu at the same cost? This will also the deployment of Pareto 20%/80% analysis and of course, SMART Goals Principles
Establishing strategic partnerships with foreign airlines not present in Nigeria, through initiatives like code-sharing agreements or structured booking and transfer arrangements, can expand Air Peace’s global reach beyond the Lagos-London route, providing seamless travel experiences for passengers worldwide. This allows passengers to book Air Peace flights through other airlines’ platforms and vice versa. Given past challenges faced by smaller airlines attempting similar endeavours, Air Peace can pioneer practical and effective partnership activations to ensure success in this strategy. All these are seamless through the use of Decision Trees Analysis.
In addition to offering flights to Gatwick, Air Peace could enhance the passenger experience by providing bus shuttles from Gatwick to London city center, catering to those with preferences for Heathrow Airport. Increasing baggage allowance from 23kg to 30kg would also appeal to Nigerian passengers who often engage in significant shopping during London trips.
Air Peace can boost customer loyalty and retention through robust loyalty programmes like offering automatic rebates for local flyers, alongside targeted marketing campaigns. Implementing innovative pricing structures, such as offering credit tickets to passengers like public servants with payment deducted from their salary, can also meet diverse customer needs effectively.
Air Peace must prioritize enhancing its performance in local flight operations within Nigeria to positively influence perceptions and preferences for its foreign flights. Reliability and trustworthiness are key, as passengers’ experiences with delays and cancellations on local routes significantly impact their trust in the airline. By focusing on consistent and courteous service, Air Peace can earn and maintain Nigerians’ trust while competing with foreign airlines in the global market. Moreover, the airline can differentiate itself through personalized customer service, innovative in-flight entertainment, punctuality, reliability, and fleet modernization.
The truth is that Air Peace needs to deploy strategic response much more than just emotional appeals and sentiments, and as a result, it should also consider poaching a business manager from any or the competing foreign airlines who can quickly inject more strategic maneuverings, subject to possible non-disclosure agreements, to the operations of Air Peace. They also need to consider an official spokesman for the airline so that my brother, Allen Onyema will not continue to be seen as the Chairman who doubles as the spokesman and business strategist.
Despite reservations about government involvement in private enterprises, the Nigerian government can aid Air Peace amidst challenges from foreign airlines. By creating favorable regulatory frameworks and designating Air Peace as the official airline for public servants, expansion and operational efficiency in the Lagos-London route can be stimulated.
Furthermore, offering incentives such as tax breaks, financial backing for infrastructure development, and loan guarantees can fortify Air Peace’s resilience and adaptability. Prioritizing Air Peace over foreign carriers by reallocating support and resources can not only foster competitiveness but also bolster Nigeria’s aviation sector and elevate its global standing.
It is believed that these strategic initiatives, combined with a focus on operational efficiency and service quality, can enhance Air Peace’s competitive standing in the market, echoing the resilience showcased by foreign carriers in maintaining their foothold in the Lagos to London route against the avalanche of previous attempts.
*Oracle Nwala, LL.M, PhD, mni
