Aero slashes fares on all routes to N80,000, eyes investors

• Carrier sees 14% profit, reduces salary liabilities by 30%

Nigeria’s oldest airline, Aero Contractors has slashed airfares for the festive season to N80,000 from over N110,000 airfares currently going for to many destinations in the country.

Speaking to journalists at a media briefing at the airline’s office at the Murtala Muhammed Airport, Lagos on Tuesday, the Managing Director of the airline, Capt Ado Sanusi said the idea was to give back to customers during this trying period and the festive period.

The gesture according to Sanusi is expected to last till the end of January, adding that the slashed fares would apply to all Aero Contractors’ routes.

This is coming as the carrier is preparing the carrier for fund injection, seeking new investors in the over 60-year-old carrier.

He said the gesture aims to give back to Nigerians during the Yuletide and to make people travel easily during the period.

“Regarding the issue of reducing fares, we have looked at the market. We have seen a surplus capacity. As I said, we are not operating in isolation. I believe you are aware that at least about ten aircraft have entered the market. We have also studied the economic situation of the country. We are not insensitive to the economic hardship that is going on. And in the spirit of Christmas, which is the spirit of giving, we have decided to reduce our prices.

“We are still going to be profitable. We are not reducing our prices where we would not be profitable. Everywhere in the world you see there are Christmas sales, there are summer sales. There are sales during holidays.

“The reason is to give back to your customers, to your loyal customers. I believe we should start doing that. We do not intend to increase capacity. We have two to three aircraft that will be flying. And we intend to continue to modestly be reliable to our destinations.”

“We understand we are not operating in isolation and we do understand that there are a lot of airlines that have deepened in capacity, which is good for the market. We intend not to do that. We intend to maintain our fleet size of about three. We intend not to increase our routes. As for the investment, what I project for Aero Contractors is ten-fleet for ten aircraft operations.”

“Yes, I said if there is so much demand, you naturally increase the prices. But in this festive season of giving, I don’t think we should apply that economics. I think we should give back to the customers on their roads.

Speaking on new investors for the carrier, he said 10 aircraft would make the airline to be stronger .

He however said it depends on what the new investors want for the carrier as regards the number of airplanes that would be needed by the new partners.

It depends on whether he is going to lease those aircraft. It depends on whether he is going to buy those aircraft. And it depends on what kind of aircraft he intends to buy. But we can only advise. And the advice is this company will go back to its rightful position with ten aircraft flying.

In a milestone in Nigeria’s aviation industry, Aero Contractors marked a turnaround with 14% profit, signalling the airline’s recovery. The company, which had faced financial challenges for years, has transformed its negative 69% position in 2022 into a modest year-to-date profit of 14%.

Sanusi attributed this achievement to strategic reforms and a committed workforce, saying, “This 14% profit reflects the hard work and dedication of the Aero team to position the airline for sustainable growth.

Building on this momentum, Aero Contractors has implemented several initiatives aimed at improving operational efficiency. A 33% reduction in liabilities and near completion of overdue salary payments highlight the airline’s commitment to fulfilling obligations.

Sanusi noted, “We have almost cleared all outstanding staff salaries, with just one month remaining. Reducing liabilities has been critical to our recovery process. These efforts align with the airline’s strategy to prepare for investor engagement and operational expansion.”

With significant liabilities resolved and operations optimized, Aero Contractors is well-poised to attract investors and sustain its growth trajectory.

The airline chief noted that by focusing on operational excellence and strategic investments, the airline is set to contribute meaningfully to the aviation sector

Wole Shadare