THUMBS-DOWN: Arikair And Aero Contractors, Refund Cancelled Flights Tickets Now – Ibude Guobadia

 

The Regulatory authorities should step in. There should be compensation to passengers by the Airlines for such cancellation. And in situations where the cancellation is unavoidable, refunds should be made within 48hours.

PEGASUS REPORTERS

In the past two weeks, I have had three fully paid for domestic flights cancelled by the Airlines. The flights were cancelled via terse e-mails to my email box about 24-hours before the departure of the respective flights. The e-mails provided no alternatives on how I was to embark on my scheduled trips.

(It will be recalled that) the demand for air travel in the Nigeria domestic space exceeds supply for a couple of reasons:
· The high levels of insecurity on the roads
· The Covid-19 pandemic which led the airlines to reduce their operations

Now the whole cancellation saga got my Engineering, Banking and Data Analytics brain thinking. The average price for a domestic flight ticket is N50,000.00. The average plane takes about 120 passengers. This comes to a total Revenue of N6Million per flight. Again because of high demand, tickets are typically purchased in advance and mainly online.

Let us take it that each airline cancels at least one flight a day. However, to give the Airlines benefit of the doubt, I will assume they cancel only 25 flights in a month, which allows for some days without cancellations. I strongly believe it is more than this but I will stay with this for ease of analysis. This comes to N150Million of ticket payments tied down with the Airlines monthly.

Now the 2 airlines affected ( Arikair and Aero Contractors) have a policy of refund after 40 days of the complaint. So these Airlines get to trade every month with 150Million of passenger funds for at least 40 days and given the long and complicated refund process, approximately about 10% of the funds( N15Million ) ends up with the Airlines for no service rendered. This scam translates to the Airlines trading with N150Million monthly and illegal appropriation of N15Million in the end

The Regulatory authorities should step in. There should be compensation to passengers by the Airlines for such cancellation. And in situations where the cancellation is unavoidable, refunds should be made within 48hours.

Meanwhile, I hope and pray I get my refund from Arikair and Aero Contractors

Ibude Guobadia is the Managing Consultant, Maneng Services Limited

Pegasus Reporters wishes to call on the management of these airlines and the Nigerian Civil Aviation Authority to kindly look into these complaints as many air travellers are involved in these recurrent cancellations of flights. – Editor

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