Government Begins Investigation on Fare Hike by Nigerian Airlines for Domestic Travels, Orders Reversal

Government Begins Investigation on Fare Hike by Nigerian Airlines for Domestic Travels, Orders Reversal

  • The federal government of Nigeria is not happy that Nigerian airlines came together to announce a 100% increase in airfares on domestic routes
  • According to FG, it is wrong that airlines could come together and agree on a fixed price in a market that is supposed to be open
  • Although Airlines came out to debunk the news that it increase price despite flight ticket evidence, FG has ordered a new pricing system

The Federal Government has ordered domestic airlines to reverse the recent hike in airfares on domestic routes.

Babatunde Irukera, the Executive Vice Chairman/Chief Executive, of the Federal Competition and Consumer Protection Commission(FCCPC ), gave the order revealing that the airlines' operators might have together agreed on airfares hike in a meeting at Abuja,

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According to him, it is wrong for competitors to come together and agree to fix a price, the Punch reports

Government begins investigation on 60% fare hike by Nigerian airlines for domestic travels orders reversal
Passengers on arrival from Abuja to Lagos at Murtala Muhammed International Airport. Credit: Photo by Olukayode Jaiyeola/NurPhoto
Source: Facebook

What is FCCPC saying?

Irukera in the statement said:

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“Although the investigation is at early stages, there is sufficient probable cause to proceed and also provide interim measures to restore a free and undistorted domestic aviation market."

He noted that after FCCPC preliminary investigations showed that the airline operators colluded to increase airfares contrary to section 107(1) (a) and section 108 of the Federal consumer Protection Act, 2018.

However, airlines came out to debunk that it increased fare tickets and described the news as rumours despite shreds of evidence.

FCCPC orders reversal

However, Irukera was not buying the explanation and insisted that the airline operators agreed to fix a base price as reported by Premium Times.

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He added:

"The commission’s understanding from intelligence so far gathered is that there was significant controversy and or an initial lack of consensus with respect to coordinated conduct resulting in setting airfares.
“The commission also has credible information that while attendees at the meeting may not have arrived at a consensus, the meeting ended in a resolution that encouraged, permitted or consented to the coordinated conduct.”

How the airlines increased price

Irukera also explained that airfare increase was initiated after a series of meetings over a period of three weeks, including the ones on February 17, 2022 and February 19, 2022, to discussed multiple industry-wide issues, particularly challenges experienced by AON members.

“Specifically, Air Peace, Azman Air and United Nigeria Airlines immediately proceeded with the increase. Arik followed and then Aero Contractors"

FCCPC boss revealed Aero Contractors noted in this communication that all other airlines have effected same increase.

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"The FCCPC stated that within days, Max Air also increased fares to the same minimum N50,000, adding that Ibom Air and Dana approximately 48 hours after what appears to be the initial coordinated conduct, also increased fares although not to the purported N50,000 minimum."

It said Green Africa Airlines maintained its existing fares between N33,000 and N38,650 but had progressively increased its fares rising to approximately N47,000 on its Lagos-Abuja route on Wednesday, February 23, 2022.

Nigerian man in the US shares reasons American embassy denies people student visas

Meanwhile, in another news, a Nigerian man who is currently residing in the United States has made some revelations as to why most of his fellow countrymen seeking academic opportunities in the states are not granted students visa.

In a series of tweets he made with his Twitter handle @MisterNigerD, he said the key to scaling through the visa application hurdle is not giving the consular at the embassy any reason to believe that you will be staying back in the US after your studies.

@MisterNigerD stated that another huge pitfall to avoid is to say that you would be getting a job when your school is on holiday in the state. This, according to him, will get your visa application denied.

Source: Legit.ng

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