Victor EzejaThe Federal Competition and Consumer Protection Commission (FCCPC), said Air Peace was only invited for an inquiry to understand its pricing system and address consumers’ concerns complaints.
FCCPC Director, Surveillance and Investigation, Boladale Adeyinka, who made the clarification, said neither the airline nor the chairman, Dr Allen Onyema, is under any investigation, but that the Commission invited Air Peace based on complaints from customers for the airline to educate them on its price methodology.
Join our WhatsApp ChannelAdeyinka stated this Abuja when the Chairman of Air Peace, Dr Allen Onyema, led some members of his team to honour the invitation extended to the airline by the FCCPC.
Prime Business Africa reports that the agency had on Sunday, 1st December, issued a statement announcing that it has invited Air Peace and other companies including MTN and GT Bank to inquire about complaints made by Nigerian consumers about their services.
On the part of Air Peace, the agency said it was invited to come and address “allegations of exploitative ticket pricing, including significant price hikes for advance bookings on certain domestic routes.”
Adeyinka thanked Air Peace chairman and his team for honouring the invitation in person, adding that they have gained more insight into the airline’s operations. “Just again to reiterate that it is not an investigation, it is an enquiry to understand and again, find out based on consumer complaints,” she added.
She commended the Air Peace and his management for the expertise and insights deployed into the work to put the aviation industry on better pedestal in the country.
“Thank you also for bringing your expertise and insights to the industry, it is a good one for us, it is a good one for Nigerian consumers. This is our own, we are happy that you are doing well because if the consumers are saying that this is our aircraft, it means that ownership has moved from you to every Nigerian.”
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She explained that the Commission exists for the good of businesses, customers and the operators, stressing that business stability and sustainability are core to their mandate.
On his part, the Air Peace chairman clarified that airfares in the aviation industry are set globally, but regretted the fact that Nigeria’s tariff system is out of proportion to the cost of operating an aircraft, which is why Nigerian airlines fail so often.
Onyema maintained that Nigerians would have to decide whether to fly safely and sustainably, which calls for appropriate price based on international standards, or wait for the airlines to fail as a result of subpar pricing.
The airline boss stated that he has remained in the aviation industry due to the addictive nature of the industry and his sense of patriotism, emphasising that few Nigerians could afford to fly if Air Peace were to factor in the various fees associated with its operations.
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He highlighted some of the challenges they are grappling with in the industry which include high interest rates on bank loans, which range from 33 to 35 per cent, high cost of insurance, which according to him is estimated to be around $12 million a year and could cover roughly eight aircraft overseas. Other challenges he mentioned are the fluctuating cost of aviation fuel, different forms of charges at airports, and cost of aircraft repair and replacing, all of which are sourced in dollars. These, he said, contribute to the exorbitant cost of tickets.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
