FCCPC speaks on Air Peace’s ‘diversion tactics’ amid pricing probe

The Federal Competition and Consumer Protection Commission (FCCPC) has rebuked Air Peace for what it describes as deliberate attempts to derail its ongoing investigation into the airline’s pricing practices, which have raised significant concerns among consumers.

The commission’s inquiry, which is centred on allegations of exploitative ticket pricing and unfair business practices, has been met with strong resistance from the airline, which it alleged to be using public relations tactics to distract from the scrutiny.

In a statement by its Director, Corporate Affairs, Ondaje Ijagwu, on Sunday, the FCCPC reiterated its firm commitment to investigating the airline’s pricing structure and consumer complaints, rejecting claims made by Air Peace’s management that it was not under investigation.

The commission accused the airline of using media leaks and public statements to mislead the public and create confusion about the nature of the inquiry.

Misleading leaks

The statement said the controversy began last week when a report surfaced, quoting Air Peace’s chairman, Allen Onyema, following a meeting with FCCPC officials on 3 December.

According to the commission, Mr Onyema, in the media leak, claimed that the airline was not under investigation, implying that the FCCPC had no real concerns regarding its business practices. These claims were widely circulated by sections of the media and were presented as a refutation of the inquiry.

The FCCPC was quick to respond, clarifying that no such conclusion had been reached and reminding the public that the investigation remained in full effect.

In its statement, the commission “restated that the inquiry was still ongoing, urging the public to be wary of manufactured news since the report was not disseminated on the Commission’s official communication platforms.

“In a dramatic turn of events on Friday, Air Peace addressed a press conference in Lagos where it made several outlandish claims and innuendos obviously intended to whip up sentiments but conveniently avoided addressing the real issues,” it said.

Pricing under scrutiny

The FCCPC said its investigation stems from multiple complaints filed by passengers, alleging that Air Peace has engaged in unjustified fare hikes, a lack of transparency in pricing, and arbitrary surcharges.

In particular, the airline has been accused of increasing ticket prices for bookings on specific domestic routes, leaving consumers with limited options and few alternatives.

One of the most contentious issues is the airline’s suggestion that a one-hour domestic flight in Nigeria should cost between N500,000 and N700,000.

FCCPC said Air Peace has justified this by citing high operational costs, including fuel expenses, which it claims amount to N7 million for a single hour of flight time.

However, the commission said some consumers and industry experts have contested this claim, suggesting that it does not align with the typical fuel consumption of the airline’s fleet or the ticket revenues generated.

For example, it is reported that a Boeing 737-500, which is a typical model used by Air Peace for domestic flights, requires approximately N4 million to fill its 4,500-litre tank of Jet A1 fuel.

With an average of 120 passengers per flight, a one-hour journey would generate N24 million in ticket sales at an average fare of N200,000, raising questions about the justification for a proposed fare hike to N500,000 per ticket.

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At the same time, other airlines in the Nigerian market have reportedly reduced fares, with some offering tickets for as low as N80,000 on similar routes.

The statement said the contrast has led to consumer complaints questioning whether Air Peace’s pricing is excessive and whether the airline is playing a role in encouraging other carriers to hike prices.

Jurisdiction

The FCCPC made it clear that its investigation into Air Peace is fully within its legal remit.

Under Section 33 of the Federal Competition and Consumer Protection Act (FCCPA) 2018, the Commission is authorised to conduct inquiries into potential violations of consumer rights, including in the aviation sector. Section 127(1)(a) of the FCCPA empowers the commission to examine whether pricing practices are fair, competitive, and transparent.

In light of this, the FCCPC urged the public to recognise its mandate and the legal framework underpinning its actions.

The commission also emphasised that the public is entitled to fair treatment and protection from exploitative business practices, regardless of the size or influence of the companies involved.

“For the avoidance of doubt, let it, therefore, be noted that no amount of blackmail or cowboy tactics can stop the Commission from the ongoing thorough investigation of the allegations against Air Peace to take the appropriate action in accordance with the provisions of the FCCPA.

“The Commission reassures the public that it remains resolute in its mandate under Section 104 of the FCCPA, which establishes the Act as the principal legislation governing competition and consumer protection in Nigeria. The Commission is committed to safeguarding consumer rights, promoting market fairness, and fostering a competitive and transparent marketplace across all sectors, including aviation,” it said.