Pe@rson
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UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 5:37 am

BA's and VS's airfares from LHR to LOS are extremely high - normally above £500 - which obviously leads me to believe that the year-round yields on that route are very high indeed. This can be confirmed by BA apparently saying that this route is one of its most profitable. But while the UK-Nigeria link produces such high yields and profits, what about from Nigeria-UK and from Nigeria to the rest of Europe, like CDG, FRA, FCO, etc? Are the yields between Nigeria and the rest of Europe and vice-versa similarly high as between the UK and Nigeria?
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
LJ
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 5:44 am

I've heard many rumours that yield on AMS-ACC are also extremely high. not only because of the high fares for local traffic (it's very difficult to get a AMS-LOS ticket on KLM for less than EUR 1,000 during the summer season), but also connecting traffic (mainly ex UK or USA) appears to have a high yield (it's one of KLMs "golden" routes).

BTW the same appiles to Ghana
 
Pe@rson
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 6:04 am

Yeah, it's very interesting. I suspect all services from Europe to Nigeria produce high yields. Indeed, it seems that all fares from Europe to west Africa are high to very high.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
sr176
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 6:36 am

Thats why I absolutely don't understand why LX dropped Lagos and Accra
 
Pe@rson
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 6:39 am

A number of airlines operate between Europe and Nigeria, many of which providing connections from the US, Canada, etc. Perhaps LX's service to LOS was inappropriately timed thereby not allowing quick and easy connections, or perhaps it suffered from a lack of passengers in view of the competition. Who knows?
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
Sonic
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 6:44 am

If the yields are so high that they raises prices to high levels, why they doesn't increase frequency or fly a bigger plane instead? Such flights, albeit on cheaper prices, would easily compete out other airlines as it seems. Or is Nigerian government putting some restrictions on number of flights per week/per day? Or is there some trouble with slots at Nigerian airports?
 
Pe@rson
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 6:54 am

'Why they doesn't increase frequency or fly a bigger plane?'

Services between LOS and Europe include:

1) LHR - BA 744 daily and VS 343 daily;
2) FRA - LH mix of 343 and 332 daily;
3) CDG - AF 332 daily; and
4) MXP - AZ 762 four-times weekly.

It's obvious that most of the airlines serving LOS from Europe do so quite regularly and with widebody aircraft.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
donder10
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 7:14 am

Sonic,
Nigeria is quite a restricted market so that explains the high yields on the supply side.
 
behramjee
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 7:29 am

Alitalia now flies B 772s 4 times a week and not B 763ERs!!!

How are the yields on the US-LOS-US sector? How well do SAA do the daily A 346 LOS-JFK-LOS sector yield wise? And how much are their Eco and J class prices for this route?
 
Pe@rson
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 8:16 am

They don't operate 772s on their MXP-LOS service according to Amadeus, and they won't, it would seem, during the summer season.

AZ don't operate 763s, only 762s.

[Edited 2004-02-15 00:21:03]
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
trident2e
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 8:26 am

There are several large UK companies with big operations in Nigeria. They help to keep the planes full and the fares high.
 
MAH4546
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 10:33 am

AZ don't operate 763s, only 762s.

It is the other way around, though the aircraft come up at 767 in Amadeus, rather than 763.
a.
 
ETStar
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 12:25 pm

Behramjee,
The SAA deal that was struck with Nigeria Airways no longer exists, and according to Amadeus there are now no direct flights between LOS and JFK. World Airways had started operating the route a few months ago, but that also stopped due to some disagreements with the travel agency that was in charge of selling these tickets... this latest event had some hundreds of pax stranded for weeks, and airlifted by Ghana Airways at the request of the Nigerian goverment.

All routes out of Nigeria are lucrative to airlines, including those that do not fly to the US or Europe. As long as there is instability in Nigeria with their national carrier, these foreign airlines will keep exploiting the market.
 
pat
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 9:53 pm

Hi there,

I think we somehow mix a lot of different things.
The yield out of / to Nigeria is not that high (compared to other african routes). The market is indeed huge but to achieve some profitability on that route (EUR-Nigeria) you need to be an airline providing connections (on your aircrafts) to the US (nigerian expats homebase) and also UK.

The market is huge but so is the concurrence as well ... AF, BA, AZ, KL, EK, SA, KQ, ...
Only major airlines.

Believe me, if it was that profitable LX and SN would never have dropped the route. Especially LX looking for every single penny and SN trying to maximize its network.

BA and KL might be profitable on that route but as for the others, I don't think it is a real goldmine (still if you look at it in a african profitability perspective).

Cheers,


Pat

 
AirGAbon
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RE: UK-Nigeria And Europe-Nigeria Yields

Sun Feb 15, 2004 10:38 pm

For AF all services from CDG to Central and West Africa (including Nigeria) produce high yields. All fares from CDG to Africa are very high (in particular Luanda in Angola, and Libreville in Gabon).

The cheapest fares to Africa with AF are to Dakar, Senegal (Tourism: daily B772).

The most profitable route for AF (worldwide) is CDG-ABJ (Abidjan, Ivory Coast) with a daily B772.
 
donder10
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RE: UK-Nigeria And Europe-Nigeria Yields

Wed Feb 18, 2004 1:53 am

The most profitable route for AF (worldwide) is CDG-ABJ (Abidjan, Ivory Coast) with a daily B772.

On a PER flight basis is Luanda apparently.Do you reckon LBV will be upgraded to the 772 when AF 330/340s become 2-class?It was a 340 route not too long ago.
 
JGPH1A
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RE: UK-Nigeria And Europe-Nigeria Yields

Wed Feb 18, 2004 1:57 am

LOS/ABV are HUGELY profitable for BA - Nigeria is their single biggest moneyspinner in terms of yield per pax, last I heard. Hence VS being so keen to operate the LOS and PHC routes.
Young and beautiful and thin and gorgeous AND BANNED ! Cya at airspaceonline.com, losers
 
donder10
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RE: UK-Nigeria And Europe-Nigeria Yields

Wed Feb 18, 2004 2:01 am

The problem for VS is that the LHR-LOS flight is an overnighter so it relies more on O&D traffic(which is still immense)

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