Friday, August 20, 2010

AERO AND THE LOW FARES

Aero has once again shown its pioneering role in the unbundling of domestic fares, encouraging cashless transaction, which is a fade with low cost carriers world over and also being practiced by legacy carriers on selected routes and class.

The fuel charge introduced is a reflection of fuel situation in Nigeria and a brilliant attempt to educate the public and the government in particular the impact of jet fuel on our carriers bottom-line, though it’s not a fixed charge. It usually swings with the prevailing fuel price.

I hopefully look forward to a last-minute ticket sales promo and process on their web, which will increase traffic to the site and will most importantly fill no-shows considering the seats become perishable when the flights departs.

It will be interesting to see our airlines on the social marketing sites of twitter, face book e.t.c. it’s a more organic process and our airlines must realized the potential for free marketing these sites provide.

The management of Aero should compliment the commendable unbundling process, by working assiduously to drive down their cost of operation while tinkering with the idea of separating its schedule services from it other chartering, servicing and maintenance services to enhance efficiency, improve profitability with cost reduction.

The NCAA’s stoppage of the fuel surcharge at that time was regrettable and should be reviewed forthwith because foreign airlines operating into Nigeria have been collecting fuel and other charges as ancillary revenue over the years to cushion the biting effects of fuel price, meltdown e.t.c, so why are they stopping Aero? NCAA can as well stop all the promotional fares and revert to the out-dated collusion and regimented flat fare regime as witnessed in the time past.

Aero management should also, learn to give the public some notification period rather than adopt a swift implementation of new fares, charges and policies, which is the norm world over

We need to sustain the noticeable increase in domestic travel across all airports and in doing this we should give the airlines some freedom in commercial decisions without interference.

Aero’s gradual transformation to a low fare carrier is encouraging and should improve I.T facilities that naturally act as driving force for this model. Also they should have it at back of their mind that, in the airspace there are openings for those who look hard, using the right aircraft and delivering the right product.

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