Air Peace, Nigeria’s flag carrier, has addressed the planned probe of the Federal Competition and Consumer Protection Commission (FCCPC), describing the allegations of exploitative fares as both damaging and unfair.
On December 1, the FCCPC announced that it would probe MTN Nigeria, Guaranty Trust Bank (GTB), and Air Peace over consumer complaints of exploitative practices.
The commission said the inquiry would address issues related to poor service delivery, exploitative practices, and possible violations of consumer rights.
In another statement on Thursday, the FCCPC said its investigation into the exploitative ticket pricing is ongoing, refuting claims circulating that the commission is not investigating the airline.
Speaking to journalists on Friday, Oluwatoyin Olajide, Air Peace chief operating officer, criticised the FCCPC for not going through the right channel as the aviation industry is highly regulated.
Olajide expressed concerns that the commission bypassed the Nigerian Civil Aviation Authority (NCAA) and took the matter public, leading to misinterpretation.
She disclosed that the airline’s chairman attended a meeting with the FCCPC in Abuja on the matter, during which the commission said the airline was not under investigation.
“Can I tell you what this has done to us in the last one week this whole thing started? A key country that we are applying to, a foreign country, to give us slots so that we can start our formal operation. They wrote us. They put it down in writing to tell us that Air Peace, I don’t have slots for you because you are not our priority,” Olajide said.
“Do you know why anybody would be so bold to put this kind of thing in writing and send to you? It is when they read this kind of news, they will come to a conclusion that your own federal government is against you and we know that the federal government of Nigeria supports indigenous investment. We know they are not against indigenous investment.
“So it is really disheartening when people do this kind of thing without understanding the implications, the magnitude of the damage they could do to themselves because it is not just Air Peace. Chairman is not the owner of Air Peace. Air Peace belongs to Nigeria.
“We cannot sit back and allow this same airline that has rescued us to be pulled down for reasons that are not justified.”
Addressing concerns about ticket pricing, Olajide explained that the high cost of flight operations in Nigeria is the primary determinant.
She said the soaring cost of aviation fuel, “which accounts for up to 65 percent of operational costs”, and exorbitant insurance fees are some factors that could affect ticket prices.
Other challenges include high interest rates on loans, unfavourable foreign exchange rates, and infrastructural limitations at local airports that restrict operational hours.
“Today in Nigeria, we are buying one litre of fuel at almost N1,400 per litre. If I have to operate a one-hour flight from here to Abuja, from here to Owerri, to Enugu, to Port Harcourt, I’m going to be using about 4,000 litres of fuel and that is costing me almost N7 million,” she said.
“Talking about the ACMI cost. You go out there and you get planes at very high costs. You bring them here. ACMI costs are up. On the average, it is going to give you like $4,000. Today, how much is $4,000 per hour? That is giving you almost another 7 million. So let’s add it to the fuel. That is 14 million, one-hour flight.
“Then we talk about insurance costs. What Nigerian airlines pay for insurance is like three or four times what other people are paying. Do you know the reason? Because Nigeria is stigmatised. We bear the brunt of it.
“Then we will now charge N95,000 to Abuja, N100,000 to Abuja, N120,000 to somewhere, and then we are crucified for this. This is terribly unfair. We will not be wrong to say that this is a witch hunt. You can’t do this. It is unfair.”
Olajide questioned the parameters the FCCPC used to determine that Air Peace’s fares are exploitative.
She said the allegations appear to originate from “unclear quarters”, stressing that the situation must be addressed as it is not only damaging to Air Peace but also to Nigeria.
Olajide, who said the airline is making every effort to showcase Nigeria on the global stage, called for support rather than actions that undermine its efforts.
Air Peace,
Federal Competition and Consumer Protection Commission,
flight ticket price
