Allen Onyema, the Chief Executive Officer of Air Peace, has raised concerns over what he perceives as unfair competition tactics employed by foreign airlines on the Nigeria-UK route.

Speaking exclusively on the Channels TV evening program, Politics Today, Onyema revealed that the significant reduction in international airfares by foreign carriers operating on the route is a deliberate attempt to prematurely remove Air Peace from the market.

The CEO pointed out that before Air Peace entered into the Nigeria-UK route, foreign airlines were charging exorbitant prices, citing business class tickets costing as much as N17 million and economy class reaching N5 million. However, shortly after Air Peace began operating on the Lagos-London route, foreign airlines drastically reduced their fares, despite no significant change in the exchange rate between the dollar and the Naira.

Onyema expressed his frustration, stating, “The foreign airlines were taking between N15-N17 million for business class, N6 million for premium economy, and N5 million for economy. Then Air Peace came on, charging N4.5 million for business class, and economy class starting from N1.2 million. Now Air Peace did this, everybody has came crashing their prices from N18 million to N5 million. Dollar did not change.”

He further elaborated that foreign airlines are conspiring to cut their fares to levels below their break-even point, with the aim of pushing Air Peace out of the Nigeria-UK route. Onyema warned that if these tactics succeed, Nigerians would face considerably higher fares than the current rates.

Air Peace launched its Lagos-London route on March 30 to provide quality travel experiences and make international trips more affordable for Nigerians.

Since commencing its UK service, Air Peace has offered competitive rates, with economy class fares starting at N1.2 million, significantly lower than the N3-5 million usually charged by foreign carriers. Business class tickets are priced at around N4.5 million, well below the N15-N18 million rates of foreign airlines.

Onyema also disclosed that since the airline began its direct flights from Lagos to London a few weeks ago, Gatwick Airport has allegedly frustrated its operations, aiming to impede its activities in the UK. He cited challenges with ground handling and space allocation at Gatwick Airport as proof of these retaliatory actions.

On the inaugural flight out of London, Onyema claimed that Gatwick Airport management moved Air Peace to a different checking area and assigned a malfunctioning baggage carousel, leading to delays and inconvenience for passengers.

Additionally, the CEO revealed that the boarding gate in the reassigned terminal collapsed on the day of Air Peace’s flight, further compounding the airline’s challenges at the London airport.

Onyema acknowledged the support received from the Federal Government, particularly from the Minister of Aviation and Aerospace Development, Festus Keyamo, in launching Air Peace’s Lagos-London route successfully. However, he called on the government to intervene against foreign airlines that are slashing fares below their break-even points, aiming to force Air Peace out prematurely.

He suggested that the government could assist Air Peace by reducing its operational charges, thereby providing the airline with a better opportunity to compete against foreign carriers backed by their governments.

The United Bank for Africa (UBA) has reported a remarkable surge in profits, boasting a profit before tax (PBT) of N757.7 billion for the fiscal year 2023. This substantial increase from N201 billion in 2022 marks a staggering 277 percent growth year-on-year, despite the daunting challenges posed by the global economic headwinds.

Addressing the release of its 2023 financial reports in a statement on Tuesday, UBA noted this unprecedented growth as a significant milestone in the annals of the company’s history. Notably, the bank’s profit after tax (PAT) also soared by 257 percent, ascending from N170 billion in 2022 to an impressive N608 billion in the year under review.

Moreover, UBA’s gross earnings experienced a meteoric rise, scaling from N853.2 billion at the close of 2022 to a substantial N2.08 trillion by the end of the previous year. This surge in earnings underscores the bank’s robust performance amidst a challenging economic milieu.

An excerpt from the statement reads: “The Group’s shareholder’s funds crossed N2 trillion from N922 billion in 2022, whilst total assets crossed the N20 trillion mark (90.2% YoY growth). The Group is well positioned for further business expansion in FY2024 having closed FY2023 with a capital adequacy ratio of 32.6%.”

Oliver Alawuba, UBA’s group managing director and chief executive officer, expressed his satisfaction with the outstanding results achieved by the Group, stating, “I am very pleased with the unprecedented results achieved by our Group in FY2023.”

Commenting further on the results, Alawuba affirmed the bank’s commitment to expanding its market share and creating value for its shareholders.

He added, “Driven by our customer service and execution-led delivery model, we will continue to expand our market share and create value for our shareholders and meet the expectations of our various stakeholders.”

Ugo Nwaghodoh, UBA’s executive director of finance and risk management, highlighted the challenges encountered in 2023, including rampant inflation and currency depreciation.

“The Group conservatively set up significant impairment reserves against its overall risk assets portfolio considering the latent impact of the macroeconomic headwinds on our credit portfolio,” he said.

However, he expressed delight at the substantial growth in earnings and profitability recorded during the year.

“I am delighted however at the strong growth in earnings and profitability recorded in the year,” Nwaghodoh said.

He also emphasized the Group’s prudent management of risk assets in light of prevailing macroeconomic headwinds.

Looking ahead to the 2024 financial year, Nwaghodoh reiterated the bank’s commitment to sustainable growth and maintaining robust compliance and risk management practices.

Nigerian banks recorded significant financial gains in 2023, according to their financial reports.

With this extraordinary feat, UBA has now joined Zenith Bank and Access Corporation in the coveted N20 trillion club (20TC) in terms of total assets, underscoring its position as a powerhouse in the financial sector. Access Bank leads the pack with a total asset base of N26.66 trillion, followed by UBA with approximately N20.65 trillion, and Zenith Bank with a total asset of about N20.36 trillion.

Similarly, Access Corporation and Zenith Bank experienced significant growth in total assets, further solidifying their standing within the financial landscape. Access Corporation witnessed a remarkable increase in total assets to reach N26.7 trillion in 2023 FY, while Zenith Bank’s total assets surged to N20.4 trillion during the same period.