CHALLENGES, COMPETITIVE DYNAMICS, AND STRATEGIC INSIGHTS IN NIGERIA’S AVIATION INDUSTRY: LESSONS FROM AIR PEACE
Larry Ibanga Thomas Department Of Human Resources Management Institute Of Arts Management And Professional Studies (IAMPS) Owerri, Imo State.
Volume 4, Issue 2, December 2024
Using case study analysis, the paper investigated the competitive marketplace and pricing pressures confronting Air Peace within the Nigerian aviation industry. The study took an overview of Air Peace's leading domestic and international competitors, highlighting how competition from its rivals – domestic carriers such as Ibom Air and Arik Air and global carriers such as Emirates and British Airways – has affected its market share through their superior service; pricing models; and operational efficiencies. The study found that Air Peace's flexible but reactive pricing strategy is less competitive in the domestic market, where its prices do not correspond to the quality of its service provision. In the domestic market, in particular, the inconsistency of government policies, the volatility of exchange rates, and inadequate infrastructure add to the airline's existing operational difficulties. Airlines should invest in improving digital infrastructure to attract a new generation of customers, procure newer aircraft to improve schedules and reduce maintenance, operation and taxation costs, and price elastically to compete against low-cost and premium carriers. Government policy reforms should take the form of stabilizing foreign exchange rates and revising aviation taxes to provide some respite for domestic airlines. The findings end with recommendations on what Air Peace needs to do to consolidate its position in the local market before it proceeds internationally. The issue of operational excellence as a basis for strategic growth is central. Still, the strategic objective is to invest in digital INTERNATIONAL JOURNAL OF ARTS MANAGEMENT AND PROFESSIONAL STUDIES E-ISSN: 2814-0389, ISSN: 2814-0370 VOL. 4, ISSUE 2, 2024 AVAILABLE ONLINE: www.ijamps.com 339 infrastructure to overcome customer ambivalence and procure newer aircraft to improve punctuality and reduce maintenance, operation, and taxation costs.