Low Cost Strategy as a Remedial Prescription for Resuscitating Nigeria’s Ailing Domestic Airline Industry: The customers’ perspective

Abstract

The number of domestic airlines operating in the Nigerian aviation industry have been on a steady decline for a number of years. This is despite a gradual increase in the average number of domestic travelers. Reasons adduced for this anomaly is related to high operational costs, debt burden and outstanding financial obligations. This study therefore examined low cost strategy as a prescription for struggling airlines in the Nigerian domestic airline industry. Stated preference theory served as the theoretical framework because it allowed the construction of realistic alternatives that respondents could choose from based on their preferences. The study was conducted in two phases using conjoint analysis. The first phase identified competitive tools relevant to Nigeria while the second phase involved respondents choosing from an orthogonal content analysis matrix based on selected factors and their attribute levels. Results indicated a high internal correlation value between observed and estimated preferences while no significant correlations was observed between the competitive tools, suggesting good model fit. Findings revealed that out of the six competitive tools, Refund policy and In-Flight Menu were the most important to passengers while Channel of ticket purchase was the least important. Based on the computer-generated path-worth utility matrix, the authors suggested a workable low-cost model that airlines could adopt to ensure survival and profitability. Implications are discussed.

A critical review of energy consumption and optimization strategies in the Nigerian aviation sector: challenges and prospects

“…The country's airports, airlines, and associated infrastructure are grappling with the dual challenge of meeting the rising demand while ensuring sustainable growth. Energy consumption, or more specifically, jet fuel consumption, stands at the crux of this challenge (Olarewaju 2020). Given Nigeria's broader energy landscape, characterized by an unstable power grid and a heavy reliance on oil, the aviation sector's energy demands have profound implications (Rapu et al 2015).…”