News
Air Peace: Strategies to Gain Competitive Advantage in the Battle for the Skies
By Austin Okere
Congratulations to Air Peace on its inaugural flight to London and for achieving full bookings for the upcoming months, thanks to attractive ticket prices. Over the past fortnight, Air Peace has been making waves on social media for various reasons.
On a positive note, the airline shared a LinkedIn post featuring a picture of former Nigerian President, Chief Olusegun Obasanjo, aboard a return flight to London.
The caption highlighted his positive experience, stating, “I went, it was pleasant. I came back, it was even more pleasant.”
However, on a different note, Nigeria Stories recently reported that the United Kingdom Civil Aviation Authority has contacted Nigeria’s Civil Aviation Authority regarding alleged violations of aviation safety regulations by Air Peace.
The significance of Air Peace’s impact on airfares along the Lagos-London route cannot be overstated. Since commencing operations on March 30, Air Peace has maintained its round-trip economy ticket price at $1,000 (₦1.2 million), a substantial reduction compared to the previous rates charged by international airlines, which could soar up to $2,500 (₦3 million).
This bold pricing approach has disrupted the established norms, prompting foreign carriers to reassess their pricing frameworks.
To uphold customer loyalty and ensure long-term viability, it is imperative for Air Peace to explore additional strategies for differentiation. I have outlined these strategies using Austin’s Four Models of Competitive Strategies below:
- Technological Leadership
This approach is commonly embraced by firms that have secured a substantial leadership edge on the innovation spectrum. Their dominant position within their specific market niche is profound, making it exceedingly challenging for competitors to replicate or close the gap. Companies like Apple, Alphabet, Airbus, SpaceX, Netflix, and Tesla, among others, adeptly employ this strategy to significant effect.
Typically, they command premium prices for their offerings, allowing for greater investment in ongoing research and expertise, thus fortifying their technological supremacy and perpetuating their cycle of success.
- Service Excellence
This strategy is often embraced by companies that may not necessarily lead in technology but excel in delivery and customer experience to secure patronage and foster loyalty. Airlines like Emirates, Singapore Airlines, Qatar Airways, and Japan Airlines consistently rank among the world’s top 10 airlines as voted by travelers worldwide, thereby drawing more patronage.
3. Customer Intimacy (Personalized Customer Engagement)
This approach is predominantly employed by companies that strive to create a familial bond with their customers. They foster a sense of intimacy with their clientele, exemplified by Ghana’s Africa World Airways (AWA), which has established a reputation for punctuality in West African travel.
Air Peace appears to be following suit with this strategy, offering popular Nigerian cuisine and beverages on the Lagos-London route, and outfitting their crew in vibrant Nigerian attire. Companies employing this strategy often boast prolonged customer retention rates. They possess a deep understanding of their customers, accommodating their unique preferences, while customers reciprocate with steadfast loyalty.
- Cost Leadership
This strategy is predominantly adopted by companies that have enjoyed an early lead in product development and launch, leveraging the returns on their investments over time. They employ low pricing to dissuade competitors from entering the market. A classic example is Coca-Cola and Pepsi-Cola.
Additionally, other companies that may employ this strategy are those that have accessed the experiences and intellectual property of more advanced competitors without incurring the costs and challenges of research and development. They are content to price their products relatively lower to attract patronage.
Many established companies with mature infrastructure also aim to increase their market share through periodic sales promotions, satisfied with extracting contribution margin from fixed costs.
Airlines often utilize this strategy during low seasons to improve their load factor rather than flying with empty seats or cargo space. They prefer to capture customers at any price rather than allow competitors to benefit from lost sales.
Bringing it All Together
In the fiercely competitive landscape of the airline industry, pricing strategies serve as a cornerstone in attracting passengers and maintaining a competitive edge. Employing competitor pricing, a dynamic and data-informed approach, enables airlines to swiftly adapt to market fluctuations and consumer preferences while optimizing revenue streams.
Airlines continuously fine-tune their fares in response to market dynamics, competitive maneuvers, and various other factors, employing a seamless and automated process to uphold competitiveness, optimize load factors, and maximize revenue streams.
While competitive pricing may serve as an initial strategy to penetrate the market and garner market share, I am cautious about relying solely on it for sustained success. It’s essential to recognize that no matter how aggressively priced one may be, there’s always someone offering a lower fare.
This approach risks triggering a downward spiral in pricing, potentially leading to a race to the bottom. In such a scenario, financially robust incumbents may outlast vulnerable newcomers, only to subsequently increase prices to recoup lost revenue once the newcomers are forced out of the market. This fate should not befall Air Peace.
Austin Okere is a thought leader, and business mentor. An Entrepreneur-in-Residence at Columbia Business School, New York.
The Senate on Tuesday deplored what it described as violations of the principles of federal character in the appointments, recruitments and promotions in some key federal institutions and agencies.
Specifically, the upper legislative chamber fingered the Nigerian National Petroleum Company Limited (NNPCL), Pension Commission (PENCOM), the Nigeria Deposit Insurance Corporation (NDIC) and several other Ministries, Departments and Agencies (MDAs) as culprits.
The matter was a subject of debate at plenary as Senator Osita Ngwu called the Senate’s attention to the alleged violations through a motion.
Ngwu’s motion, entitled “Urgent Need to Address Systemic Abuse and Ineffective Implementation of the Federal Character Principle in Nigeria’s Public Sector,” got the attention of the lawmakers.
Ngwu, who led the debate, cited Sections 14(3) and 14(4) of the 1999 Constitution, which explicitly prohibit the dominance of individuals from a few states or ethnic groups in federal institutions.
He observed that while recruitment opportunities are limited, promotions are often based solely on years of service rather than merit, leading to the continued marginalisation of certain regions.
According to him, the lack of accountability in enforcing federal character principles has compromised fairness in the public sector, with senior-level recruitments often influenced by cronyism instead of competence.
Ngwu further observed that while the federal capital principle aims to balance merit with equitable state representation, its poor implementation has negatively affected discipline, morale, and institutional efficiency.
According to him, “The federal character principle, entrenched in the 1999 Constitution of the Federal Republic of Nigeria, mandates fair representation in federal appointments to reflect the linguistic, ethnic, religious, and geographic diversity of the nation.”
He continued, “Section 14(3) and (4) of the Constitution unequivocally stipulate that ‘no predominance of persons from a few states or a few ethnic or sectional groups’ should exist within the federal government or its agencies.”
Ngwu listed the NNPCL and its subsidiaries, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the National Agency for Food and Drug Administration and Control (NAFDAC), the Nigerian Ports Authority (NPA), PENCOM, NDIC, the Federal University of Technology Akure (FUTA), the National Library of Nigeria (NLN), the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the Energy Commission of Nigeria (ECN), the Solid Minerals Development Fund (SMDF), and the Nigerian Nuclear Regulatory Authority (NNRA) as non comliant entities.
He accused them of consistently failing to adhere to federal character Mandates, and often bypassing regulations in their recruitment exercises.
Ngwu warned that unchecked violations of federal character laws would continue to erode the effectiveness of key legislative provisions.
He listed the affected legislative provions to include Section 14(d) & (e) of the Legislative Houses (Powers and Privileges) Act, 2017, Part I(1)-(2) of the Subsidiary Legislation 23 of 1997, and Section 11(2) of the Freedom of Information Act, 2011.
He also raised concerns about the lack of independence of the Federal Character Commission (FCC).
Ngwu observed that despite the Commission’s constitutional mandate, it remains weakened by underfunding, political interference, and a lack of enforcement power.
While approving the probe of the affected entities, the Senate directed its Committee on Federal Character and Inter-Governmental Affairs to conduct investigative hearings into their activities.
The committee is expected to submit its findings within four weeks.
The Lagos State Police Command has arrested four bank employees over their alleged involvement in a sophisticated fraud and money laundering scheme that diverted over £138,924 (more than ₦270 million) from international airline accounts.
CSP Benjamin Hundeyin, command’s spokesperson, disclosed the arrests on Monday during a press briefing at the state police headquarters in Ikeja.
According to CSP Hundeyin, “The suspects conspired to siphon funds from domiciliary accounts into personal accounts before redistributing them to multiple destinations.
“The fraud was uncovered when the affected bank detected unauthorized transactions and alerted the police.”
Explaining further, the spokesperson said: “Subsequent investigations led to the arrest of the following suspects: Oluwatobiloba Olaleye, male, aged 27, was arrested on March 12, 2025, in Ogun State. A Toyota Camry 2012/2013, suspected to be a proceed of the crime, was recovered from him.
Oladunjoye Adegoke, male, aged 33, was arrested on March 13, 2025, in Victoria Island, Lagos. A Toyota Camry (Pencil Light), suspected to be another proceed of the stolen funds, was also recovered.
Further investigation led to the arrest of Austin Alfred, male, aged 38, the Supervisor of the Trade Services Department, and Jude Uzobuaku, male, aged 36, a processor in the same department. Both facilitated the illegal transfer of funds to foreign accounts.”
Police investigations revealed that the stolen funds were initially funneled into an account belonging to one of the suspects before being transferred to multiple other accounts, making it harder to trace. Authorities are now working to track down additional accomplices and recover the remaining funds.
“The suspects are in custody and will face prosecution as the investigation continues,” CSP Hundeyin stated.
Tony Elumelu Foundation (TEF) has announced a $15 million grant to support 3,000 budding entrepreneurs from 52 African countries.
Tony Elumelu, founder, TEF, made this known on Sunday in Abuja during the unveiling of the 2025 cohort of the foundation’s Entrepreneurship Programme.
He stated that each beneficiary would receive a $5,000 seed grant to kick-start their businesses.
Elumelu, who is also chairman of Heirs Holdings, Transcorp, and United Bank for Africa (UBA), reaffirmed his commitment to empowering African entrepreneurs and transforming the continent’s economic landscape.
According to Elumelu, the foundation aims to democratise opportunity across the continent, fostering economic growth and providing young Africans with access to funding and mentorship.
“We had a vision that started in 2010; one that envisions a self-sustaining Africa, driven by the energy, vision, and resilience of young entrepreneurs.
“We understand the challenges they face in contributing to Africa’s economic transformation.
“If empowered and encouraged, these young Africans can drive meaningful change,” he said.
He noted that capital alone was not enough, highlighting the importance of business education, mentorship, and training in building successful entrepreneurs.
The entrepreneurship programme, which began in 2015, originally set out to economically empower 10,000 young Africans over 10 years, each receiving $5,000 in seed capital.
“This year marks the 15th anniversary of the foundation, and we have made a considerable impact across all 54 African countries.
“In the 21st century, Africa does not need aid; what it needs is investment in its youth,” Elumelu said.
Somachi Chris-Asoluka, chief executive officer (CEO), TEF, noted that since the programme’s launch in 2015, the foundation had.disbursed over $100 million to more than 21,000 young entrepreneurs across Africa.
According to Chris-Asoluka, these businesses have collectively created 1.5 million enterprises, and generated $4.5 billion in revenue.
“Our entrepreneurs have demonstrated that ideas are the lifeblood of the African continent.
“For the 2025 cohort, we received over 200,000 applications, and from this pool, 3,000 entrepreneurs from 52 African countries will receive $15 million in funding.
“Each entrepreneur will receive a $5,000 non-refundable seed grant; this is neither a loan nor equity,” she stated.
She further assured that the foundation had a monitoring and evaluation platform in place to track progress after disbursement, ensuring that beneficiaries adhered to their approved business plans.
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