Financial analyst Kalu Aja has proposed a strategic solution for Allen Onyema’s Air Peace to outmaneuver foreign airlines in the fiercely competitive Lagos-London fare route. Aja, sharing his insights on his official X account, emphasized the importance of introducing a loyalty program for domestic routes to gain a competitive edge.
In his analysis, Aja highlighted the need for Air Peace to unbundle local services and leverage its competitive advantages to effectively compete with foreign airlines. He urged Onyema to anticipate fierce competition and strategize accordingly, suggesting innovative approaches to attract and retain customers.
Aja advised Onyema to capitalize on Air Peace’s unique position by offering a loyalty program that rewards customers for their loyalty, such as discounts on local flights or cashback options. He also recommended bundling services with local offerings to create a compelling value proposition for customers.
Furthermore, Aja proposed negotiating favorable terms for aviation fuel purchases to reduce operational costs and enhance Air Peace’s cost competitiveness. By leveraging its home advantage and focusing on affordability, Aja believes Air Peace can position itself as the preferred choice for travelers on the Lagos-London route.
The entrance of Air Peace into the Lagos-London route earlier this year triggered a price war, prompting foreign airlines to slash airfares significantly. Onyema, the CEO of Air Peace, denounced the price war as a ‘devilish conspiracy’ aimed at undermining the airline’s market position.
In conclusion, Aja’s strategic recommendations underscore the importance of innovation and adaptability in the face of intense competition. By implementing these suggestions, Air Peace can strengthen its market position and attract a loyal customer base, ultimately emerging as a formidable player in the aviation industry.
