Air Travel and Airline Operations in Nigeria: Market Potentials and Challenges

Abstract

In this chapter, we analyse air traffic in Nigeria's domestic network and show the pattern of distribution in the last decade (2008-2017). We attempt to analyse factors responsible for observed patterns, thus explaining contributory factors driving the demand for air travel. Air fares are a major factor in demand, as there are alternative modes by which journeys can be completed. High costs related to provision of airline services appear to be a major factor driving prohibitive air fares. Much of the potential market for air travel is thus excluded to other modes, while traffic patterns show few commercially viable nodes-Lagos, Abuja and Port-Harcourt in a network of 20 cities. The paper proposed strategies to achieve reduced cost of operations for airlines, which hopefully will inform reduced fares and positively affect propensity to fly in Nigeria.