FG Takes Special Action to Crash Airfares, Signs Historic Agreement

• The Federal government has signed the Cape Town Convention (CTC) Practice to reduce airlines’ costs
• The Convention allows the airlines to reduce insurance costs and easily access dry leasing agreements
• Experts believe that the move will drastically reduce airfares as airlines' operational costs crash

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian government has signed the Cape Town Convention (CTC) Practice to reduce airlines’ operational costs.

The Chief Judge of the Federal High Court, Justice Terhemba Tsoho, signed the CTC Practice Direction during a stakeholders’ meeting of the Presidential Business Environment Council (PEBEC), which Vice President Kashim Shettima presided over in Abuja.

The Convention allows airlines to lease aircraft

The Cape Town Convention becomes active in Nigeria, allowing airlines to reduce their insurance costs, restoring investors’ confidence in the sector, and enabling domestic airlines to dry-lease aircraft.

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Some local operators had breached the Convention, which regulates aircraft leasing globally. The Aviation Working Group said it would block Nigeria until it implemented regulations against such breaches.

Air Peace boss commends FG

Shettima disclosed after the signing of the Convention that President Bola Tinubu's government is pro-business and is ready to take all the necessary steps to protect, promote, and preserve the interests of the country and the aviation industry.

The Chairman of Air Peace, Allen Onyema, who spoke on behalf of airline operators, appreciated the President's efforts to provide an enabling environment for them.

Allen added that since becoming President, Tinubu has introduced policies to boost the lives of Nigerians.

Nigerian Airlines Announce Fare Hikes More Routes affected

Legit.ng previously reported that following the increase in petrol prices by the Nigerian National Petroleum Company Limited (NNPC), Nigerian airlines have hiked fares on specific routes.

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A one-way economy class ticket from Lagos to Abuja on Air Peace, Ibom Air, Green Africa, and ValueJet, which cost between N50,000 to N65,000 in 2023, now costs between N130,000 to N220,000, depending on the airline, day and time of travel.

Additionally, a one-way economy class ticket from Lagos to Enugu on Air Peace and Green Africa has their one-way economy class tickets increased from N60,000 and N140,000 in 2023 to about N500,000 in 2024.

Source: Legit.ng