The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over Air Peace’s justification of its proposed N500,000 fare for a one-hour domestic flight in Nigeria.
The Commission is currently investigating allegations of exploitative pricing, lack of transparency, and other practices potentially violating consumer rights and fair competition laws.
Earlier on Friday, the FCCPC criticized Air Peace’s recent public remarks, describing them as attempts to distract from the ongoing inquiry. This followed a December 3 meeting at the Commission’s Abuja headquarters, where Air Peace executives were engaged regarding a surge of passenger complaints.
Also, in a statement issued on Sunday, signed by Ondaje Ijagwu, director of corporate affairs, the commission noted that central to the inquiry are allegations that Air Peace’s proposed pricing structure lacks justification.
The airline had claimed that operating costs, particularly jet fuel, warrant the increase, asserting that fueling an aircraft for a one-hour flight costs N7 million. Critics, however, point out discrepancies in these calculations, arguing that the average cost of fueling a Boeing 737-500, commonly used by Air Peace, is significantly lower.
The consumer protection commission argues that Air Peace’s current pricing at N200,000 per ticket already yields substantial revenue, and at N500,000, the airline could earn as much as N60 million per one-hour flight.
Compounding the controversy, competitors in the same sector have recently reduced fares on similar routes, offering tickets as low as N80,000. This move has raised questions about the affordability and sustainability of Air Peace’s pricing model as consumers have even speculated whether Air Peace sources its fuel at exorbitantly higher costs.
The FCCPC emphasised that the investigation remains ongoing and reiterated its mandate to protect consumers from unfair practices, as stipulated in the Federal Competition and Consumer Protection Act (FCCPA) 2018 as the commission has the authority to review pricing practices to ensure fairness and compliance across sectors, including aviation.
The controversy escalated when Air Peace held a press conference in Lagos, where the airline’s chairman, Allen Onyema, made bold claims, including a suggestion that the airline might shut down operations.
The FCCPC dismissed these remarks as diversionary and urged Air Peace to focus on addressing the allegations against it.
The Commission also refuted media reports suggesting Air Peace was not under investigation, clarifying that such statements did not originate from its official platforms. It cautioned the airline against obstructing the inquiry and reiterated its commitment to consumer protection.
With the investigation ongoing, the FCCPC has called on the public to disregard unverified reports and expressed its determination to ensure that Nigerian consumers are treated fairly in the aviation sector.
(Business Day)
