Competition Heightens On Accra-Lagos Route

Passengers travelling by air between Accra and Lagos could soon enjoy reduced fares, as the number of airlines plying the two cities has seen an increase. Nigerian carriers Aero and Arik as well as indigenous Ghanaian carrier Africa World Airlines (AWA) are currently the dominant players on the route. A second Ghanaian airline, Starbow, has been granted the necessary accreditation to fly to Lagos and Abuja. �Now we have the certification to fly to almost all the West African countries. We intend to resume operations in Lagos and Abuja from April after the approval in November last year,� Mr. Eric Antwi, Chief Executive Officer of Starbow told the B&FT. Starbow is to take delivery of two Bombardier Dash 8 Q400s this year in view of its West African expansion. �It is faster than the BA146, it�s a comfortable and state-of-the-art aircraft. It is a 78-seat aircraft and it does not consume a lot of fuel,� Mr. Antwi said. The Accra-Lagos/Abuja route is one of the most competitive within the sub-region. Starbow�s application to fly the route was in the works for two years until finally being approved last November. Currently, a one-way ticket on the route costs between GH�350 and GH�630 while return tickets are selling between GH�730 and GH�1,340. Indeed, fares on the route were relatively higher until AWA started operations. AWA�s introductory fares on the route has led to a significant rise in passenger throughput. For a one-way trip from Accra to Lagos the airline charges just about GH�350 and around GH�700 for a return ticket. It is anticipated that the competition will further drive down prices and lead to more innovative products and services for the benefit of passengers. The high volume of trade and decades-old economic ties between Ghana and Nigeria make the Accra-Lagos route a very busy one.The two cities have a combined population of about 25million. The outbreak of Ebola in West Africa curtailed the growth of air travel in the sub-region last year, though Accra is yet to record a single case and Lagos was able to contain the disease. As the Ebola scare wanes, the continent holds great promise for the aviation sector this year. Africa�s economy is expected to grow from US$2trillion in 2013 to US$29 trillion by 2050. Economic analysts believe that the continent is currently better-positioned for accelerated growth with all the necessary elements in place. The population of the continent is projected to hit 2 billion by the year 2050. Africa will have one of the youngest populations, too, as about 65 percent of this population is projected to be under 35 years. This young population, which is increasingly becoming well-educated, is expected to add to rising middle-income class over the next decade, with its attendant interest in flying as against travelling by pitiable roads in most parts of the continent.