Aviation Stakeholders Divided Over FCCPC Price Fixing Report
Stakeholders and professionals in the aviation industry have adopted differing positions regarding the allegation that some airlines were involved in price fixing during the last festive season in Nigeria.
The development follows an investigation by the Federal Competition and Consumer Protection Commission, which indicted five unnamed domestic carriers, a move that has continued to generate debate across the sector.
The airlines, operating under the umbrella of the Airline Operators of Nigeria, have rejected the Commission’s findings. They argue that the FCCPC lacks the technical expertise to interpret airline economics and have warned that such conclusions could threaten the survival of domestic carriers.
However, the Managing Director of Belujane Konzult, Chris Aligbe, disagreed, insisting that the Commission acted within its statutory mandate to check anti-competitive practices.
Aligbe maintained that, while the Nigeria Civil Aviation Authority regulates safety and technical operations in the sector, the FCCPC has broader powers to intervene in matters relating to competition and consumer protection across industries. He argued that the sharp increase in ticket prices during the festive period could not be sufficiently justified by airlines, adding that regulatory oversight was necessary to prevent the exploitation of passengers.
He asserted, “The FCCPC is an omnibus regulator. So, irrespective of sector-specific regulators, the sector-specific regulators cannot go outside their industry because they are sector-specific. The FCCPC has an overall right and can override if the chips are faced, if the thing comes to the fore.
“For those who have said it is a duplication of duties and that the issue should be transferred to the NCAA, I say it is wrong. For the simple fact that there are things in each sector, the details that the FCCPC may not know.”
Aligbe further accused some airlines of taking advantage of peak travel periods by restricting early bookings and creating artificial demand pressure, a situation he said forced passengers to purchase tickets at inflated prices. He added that, without strict enforcement and sanctions, such practices would persist, noting that global regulators have compelled airlines to refund passengers in similar situations.
On the other hand, a retired pilot, Muhammed Badamosi, defended the position of the airline operators, stressing that carriers have the right to determine fares based on prevailing economic realities. He noted that rising operational costs across the industry justify price adjustments, and urged critics to consider the financial pressures faced by airlines.
He noted, “The operators have the right to act and speak on what concerns them, and it is in the process that they can give the reasons as to why they have increased airfares. I do not know why somebody will tell them that they do not have the right to increase or act on what concerns them; it is business and it must be treated as such.
“We all know the way things are skyrocketing in the market now. Why should anyone then decide to enforce a price on them without knowing how they got to that point or what they have invested into their business? Nobody wants to run out of business.
“Logically, they just have to be reasonable in the increase because if they increase beyond what the people can afford, then it may boomerang.”
Also contacted, a retired Group Captain, John Ojukutu, said the FCCPC may not be empowered to question the pricing schedule of the airlines until it either works with the Nigeria Civil Aviation Authority or obtains the operational costs and other expenses of the airlines.
He said, “The FCCPC will not have the power to appropriately wade into airlines’ pricing issues because the laws have stipulations about how airlines arrive at their pricing, which is approved by the NCAA. It is there in Part 18 of the regulations.
“So, it is either the FCCPC is able to check Jet A1 prices, ground handling costs, and other operational costs and investments done by the airline; until then, the FCCPC may not have what it requires to do the job accurately as it concerns airfare prices.”