FG has cautioned Air Peace against obstruction of exploitative ticket pricing investigation.
NaijaOnPoint Nigeria reports that the Federal Government of Nigeria through the Federal Competition and Consumer Protection Commission has warned Air Peace against obstructing the ongoing inquiry into alleged exploitative ticket pricing and other potential violations of consumers’ rights.
This is according to a statement on Sunday by the Commission’s Director, Corporate Affairs, Ondaje Ijagwu.
The FCCPC’s inquiry into the airline was prompted by a surge of complaints from passengers about unfair pricing, flight cancellations, and other practices potentially harmful to consumers.
The commission conducted a meeting with Air Peace on December 3, 2024, to address the concerns raised in numerous petitions.
The FCCPC said the session, which was held in camera, was intended to protect the confidentiality of the investigation.
However, the commission noted that “shortly after the meeting, leaks surfaced in the media, misrepresenting the proceedings and making unfounded claims.”
Recall that the FCCPC had clarified the situation on December 5, reiterating that its investigation into Air Peace was ongoing.
In the statement, the commission said, “The inquiry is still ongoing, and the public should be wary of manufactured news. The report claiming that Air Peace was not under investigation was not disseminated through our official communication platforms.”
Ijagwu said the leaks quoted Air Peace’s Chairman, Mr Allen Onyema, making various statements, including a boast that he could “shut down the airline” as a favour to the nation, but conveniently omitted other comments that raised concerns.
The FCCPC noted that Onyema’s remarks appeared to be intended to undermine the investigation and distract from the core issues.
The airline had earlier, in a press conference on Friday, asserted that only the aviation regulatory agency had the authority to investigate its affairs, an argument that the FCCPC dismissed as a misunderstanding of both the legal and moral framework surrounding consumer rights.
“The rights of passengers are inalienable and guaranteed under the FCCPA,” the FCCPC countered, emphasising that the Commission has the legal mandate to investigate pricing practices and other consumer-related issues in all sectors, including aviation.
The Commission pointed to Section 17(e) of the FCCPA 2018, which gives it the authority to conduct inquiries when necessary or desirable in connection with any matter falling under its purview.
Further reinforcing its mandate, the FCCPC cited Section 127(1)(a) of the FCCPA, which empowers it to ensure that pricing practices across all sectors, including aviation, are fair and non-exploitative.
The Commission also pointed to Section 148(3)(c) of the Act, which allows it to initiate inquiries based on consumer complaints.
One of the major issues under investigation is Air Peace’s pricing practices.
The FCCPC said the airline had recently proposed fare hikes ranging from N500,000 to N700,000 for a one-hour domestic flight, citing high fuel costs.
However, several consumer complaints contest these figures, claiming that Air Peace’s fuel cost is inflated.
“At the proposed N500,000 fare, a Boeing 737-500 would be fetching a whopping N60 million per one-hour service,” the FCCPC stated.
It contrasted Air Peace’s pricing with a competitor airline that recently reduced its fares to as low as N80,000 for similar domestic routes, demonstrating that affordability and sustainability can coexist in the aviation industry.
Ijagwu said in addition to concerns about pricing, several passengers have complained about arbitrary flight cancellations and poor compensation practices.
FCCPC noted that for instance, on November 29, a group of irate passengers at the Nnamdi Azikwe International Airport staged a protest after experiencing a four-hour delay on the Abuja-Lagos route. The protest led to a security intervention to restore order at the airport.
It added that passengers have also reported that after experiencing flight cancellations or delays, they were forced to pay a 50 per cent surcharge to rebook their tickets on another day.
The FCCPC said despite these efforts to deflect attention from the ongoing inquiry, it remains resolute in its commitment to safeguarding consumer rights.
“No amount of blackmail or cowboy tactics can stop the Commission from the ongoing thorough investigation of the allegations against Air Peace,” the Commission warned.
Reaffirming its role, the FCCPC underscored its responsibility to ensure that all sectors, including aviation, operate in a fair and competitive environment.
“The Commission is committed to safeguarding consumer rights, promoting market fairness, and fostering a competitive and transparent marketplace across all sectors, including aviation,” Ijagwu said.