Aviation Minister Labels Inquiry “Careless”...CLICK HERE TO READ THE FULL ARTICLE➤
Aviation Minister, Festus Keyamo, criticized the Federal Competition and Consumer Protection Commission, FCCPC’s Air Peace pricing inquiry, labeling it “careless”. Specifically, he urged the agency to collaborate with the Nigeria Civil Aviation Authority (NCAA) instead of going public. The inquiry has sparked debates over aviation policy and consumer rights, raising questions about Air Peace’s fare transparency and operational practices.
The FCCPC’s Air Peace pricing inquiry stemmed from consumer complaints about alleged exploitative ticket costs and inadequate service delivery. Speaking during an interview with Arise News, Keyamo criticized the FCCPC for bypassing the NCAA, aviation’s core regulator. “It was a very careless statement by the agency, making such a pronouncement without consulting the NCAA,” Keyamo said. “The NCAA is responsible for regulating airlines and ensuring compliance with pricing structures. The FCCPC should have allowed us to provide the facts before issuing public statements.”
Keyamo further explained that challenges faced by Nigerian airlines, including Air Peace, stem from capacity limitations and foreign exchange volatility. He highlighted federal government efforts to mitigate these challenges, such as plans to improve aircraft financing access through global partnerships. “In January, I will lead a Nigerian delegation to Dublin to meet major airline financiers. This move, supported by the policies of President Tinubu, aims to improve ticket pricing and operational costs,” Keyamo stated.
FCCPC Defends Its Actions
In contrast, the FCCPC maintained its position, defending the inquiry into Air Peace’s pricing practices as necessary to protect consumer rights. A press release signed by Ondaje Ijagwu, Director of Corporate Affairs FCCPC, confirms ongoing investigations. These investigations address alleged unjustified fare increases and other harmful practices.
The FCCPC cited Section 17(e) of the FCCPA 2018, which allows it to investigate pricing practices across all sectors. The agency refuted claims that only the NCAA has jurisdiction over airline pricing, emphasizing its legal mandate to protect consumer interests.
Air Peace has faced criticism from passengers and competitors regarding its fare structure and alleged industry-wide price hikes. The FCCPC stated in its release that consumer complaints also highlight arbitrary flight cancellations, inadequate compensation, and surcharges on rebooking.
Air Peace’s Fare Claims Under Scrutiny
In response to Air Peace’s claims that its fare proposals reflect operational costs, the FCCPC highlighted certain discrepancies. It compared the airline’s figures with those of a competitor offering significantly lower fares on similar routes. Read Also: Air Peace Justifies Fares to FCCPC with Operational Cost Breakdown
“Even more disturbing was Air Peace’s claim that N500,000 to N700,000 should be the ideal fare for a one-hour domestic flight in Nigeria,” the FCCPC stated. “The airline argued it spends an average of N7 million to fuel an aircraft for a one-hour flight. However, petitions submitted by consumers to the Commission strongly contest these claims, raising doubts about the accuracy of such statements.”
“The argument is that Air Peace’s Boeing 737-500, takes N4 million to fill its 4,500-litre Jet A1 fuel tank. With 120 passengers, the airline would earn N24 million on a one-hour flight priced at the current average of N200,000. At the proposed ‘ideal fare’ of N500,000 per passenger, the revenue for a single one-hour flight would reach N60 million.”
On fare disparity, the FCCPC observed: “Interestingly, at a time Air Peace proposes N500,000, another airline has reduced fare to N80,000. This fare is not just the Abuja-Lagos flight but also on other domestic routes, thereby demonstrating that affordability and operational sustainability can coexist in the same operating environment.”
Passengers and Competitor Concerns
The FCCPC disclosed that this disparity has sparked further concerns among consumers. “That recent singular action by a competitor has led some petitioners to ask whether the fuel Air Peace uses is being imported from the United States at higher cost,” it remarked.
The Commission highlighted other grievances from petitioners, including alleged price-fixing tactics. “Some petitions before FCCPC accuse Air Peace of instigating other airlines to hike fares in the aviation industry,” it added.
On flight cancellations, the FCCPC elaborated: “Some petitioners accused Air Peace of cancelling flights arbitrarily without compensation.” It continued: “On November 29, irate passengers at Nnamdi Azikiwe International Airport protested following a four-hour delay on the Abuja-Lagos flight.” The FCCPC added: “The situation threatened public peace and required intervention from security agents to restore order at the airport.”
The Commission also addressed complaints regarding ticket usage. “Passengers complained that when they sought to use their tickets on another day after delays or cancellations, they were forced to pay a 50% surcharge,” it revealed.
Striking a Balance
Keyamo acknowledged these industry challenges but urged regulatory synergy to address consumer concerns while supporting the growth of domestic airlines. Meanwhile, the FCCPC reassured the public of its commitment to a transparent investigation and the enforcement of consumer protection laws.
As both sides continue to assert their positions, the situation underscores the need for improved coordination between aviation and consumer protection agencies to ensure fairness and accountability in Nigeria’s aviation sector. ...CLICK HERE TO READ THE FULL ARTICLE➤
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