The Federal Competition and Consumer Protection Commission (FCCPC) and the Airline Operators of Nigeria (AON) are at odds over the pricing of domestic airfares.
The FCCPC, on Thursday, faulted some airline operators for what it described as opaque pricing and hidden charges and raised concerns about what it termed the abuse of dominance on specific routes by some of the country’s airlines.
However, domestic operators countered, saying that as long as operating costs and interest rates remain high, air fares in Nigeria would continue to rise.
The debate took place during a webinar themed ‘Aviation Town Hall: High Air Fares—Are Airlines Really the Problem,’ organized by Avaero Capital Partners and aviation expert Alex Nwuba.
Speaking during the virtual meeting, FCCPC’s Executive Commissioner (Operations), represented by the Director of Corporate Affairs, Ondaje Ijagwu, also disclosed that an ongoing investigation into price-fixing in the sector was underway.
Ijagwu said, “We also have an active investigation ongoing, but we won’t be speaking so much to some of these issues in detail. We are told that a number of factors occasioned that rise (Yuletide fares). One of the reasons we were given for the December rise was the fact that there was multiple taxation, and airlines said a whole lot was being paid to the government.
“When we talk about the behaviour of air fares and airline operations in Nigeria, the behaviour of airline operators is already quite implicated. The reason is that, even when you want to book a flight, you will find the information opaque.
“If you book your flight, particularly for clients who are outside our immediate environment, you would see that a whole lot of things are listed as part of the charges. If you pay a tax when you obtain a ticket, you will see it clearly stated there. If there are other charges, you will also see them and the base fare clearly stated, so whoever is making this purchase will know these are the various components.
“But in a situation where there is asymmetry of information, consumers definitely will begin to ask questions as to why fares are rising. The interface between consumers and flying is with airline operators; the government does not interface directly with consumers in that respect. Whoever will be taking the hit will definitely be the operator himself.”
