Current underpricing of fares could make local routes some of the cheapest in the world with the affected airlines having one of the least chances of survival.
The Guardian investigation revealed that at an average cost of N30,000 per flight, it is almost impossible for commercial airlines to cover the cost of operations, run efficient services and make profits despite huge capital investments.
While the airlines are not unaware of their comparative low-income earnings, some operators and experts have drawn attention to perennial disharmony, unhealthy rivalry and even predatory marketing in the sector.
Since the ministry of transportation dollarised the aviation sector in 1985, the industry has been susceptible to the vagaries of foreign exchange. With over 100 per cent spike in the naira to dollar rate in the last two years, the cost of aviation fuel, aircraft maintenance and spare parts among others have more than doubled.
The Guardian, November 20, 2018
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