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The business of air charter in Nigeria
How did Nigeria's private air charter industry fare in the economic downturn and as the country's economy begins to pick up, what is the outlook for this space? CNBC Africa's Dara Rhodes filed this report.
Tue, 08 Aug 2017 10:47:15 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The demand for private jets in Nigeria is driven by a mix of economic conditions, convenience, and business efficiency.
- Charter service providers like JetSeton are offering cost-effective per-seat bookings to optimize aircraft usage.
- The private air charter industry is expected to see consolidation and a shift towards rational utilization, leaving behind ostentatious ownership.
The private air charter industry in Nigeria has weathered the storm of the economic downturn and is poised for prosperity as the country's economy shows signs of recovery. With over 100 privately owned jets in Nigeria, the demand for private air travel is driven by a combination of economic conditions, convenience, ostentation, status, and efficiency. The complexities of Nigeria's airline industry have created a niche for the business of private aircraft charter. Business executives, decision makers, and high-net-worth individuals find private jets to be indispensable business tools that offer quick, hassle-free, and efficient travel options. JetSeton, a key player in the industry, recognized the opportunity to provide cost-effective solutions by offering per-seat bookings on frequent routes like Lagos to Abuja or Lagos to Port Harcourt. Contrary to popular belief, private jets are not just a luxury but a necessity for some individuals. Billionaires like Aliko Dangote rely on private jets to optimize their time and avoid opportunity costs that could amount to millions of dollars if using public transport or general aviation. While owning a private jet can cost between $700,000 and $4 million annually, sharing an aircraft through charter services can prove to be a more financially prudent option. The excess capacity in the private jet space is expected to lead to consolidation and a reevaluation of owning a private jet solely for conspicuous consumption. As the industry evolves, the focus will shift towards rational and profitable utilization of private air travel, leaving behind those who indulge in it for superficial reasons. Despite its challenges, the private air charter industry in Nigeria is well-positioned for growth and profitability in the coming years.
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