Astronomical airfares and algorithms, by Simbo Olorunfemi

I am struggling to understand this argument by Aviation Experts making this astronomical hike in Airfares in December, especially for flights heading to the South East all about operational costs and taxes.

It’s simply not adding up. How does a one-way ticket from Abuja to Asaba go as high as N750,000?

How is a one-way economy ticket for a 30 minute from Akure to Lagos selling for over N400,000?

I don’t get it.

I get it. They say it’s all about market forces. Demand and supply.

This is the argument we have always made here. This erroneous assumption that the capitalist or investor is allowed to do as it likes, charge what he likes. It’s a free market. If you don’t like it, go buy a private jet. Go set up your own airline.

But as we argued with other ventures – refinery, etc., there is nowhere in the world where the capitalist is allowed to run riot in the name of market forces, or as we have been told, algorithms.

That is why you have regulators. Industry regulators and Consumer protection institutions like the FCCPC.

But we have to be consistent. We have to accept that what is good for the goose has to be okay for the gander. Not wanting it our way when it suits and standing against others, when we are not directly involved.

As I argued elsewhere on the same issue, this looks more like predatory pricing by the airlines, all factors considered.

I hear that as early as June, the December fares had already already shot up, almost as high as it is now.

That speaks to something deeper than being let out.

This December surge is historic and predictable. Airlines could have prepared for it beyond standing by to milk it.

Experts tell us airfares are globally a function of demand and supply, with the algorithm determining the current rate on the basis of market forces.

But we also know that if the algorithm could be trained on what the minimum fare should be, it should be also possible to train it on what the upper limit should be, no matter how high the demand is.

Easy to take refuge under the umbrella of algorithms when it comes to fares. Not sure how often that comes to mind when it comes to quality of service.

To hide behind algorithms, no matter to milk people is unkind.

To leave it to algorithms is not good enough.