The Federal Government has cautioned Air Peace against obstructing an ongoing investigation into alleged breaches of consumer rights, including exploitative airfare practices. This warning was issued by Ondaje Ijagwu, spokesperson for the Federal Competition and Consumer Protection Commission (FCCPC), through a statement released on Sunday.
The warning follows Air Peace’s claim last Friday that the FCCPC’s allegations of exploitative pricing have unfairly harmed its reputation. The airline further accused the Commission of failing to follow due process in its investigation. Air Peace has asserted that domestic airfares should range between ₦500,000 and ₦700,000 per route, a pricing model that has drawn widespread criticism from consumers and regulatory authorities.
The FCCPC, however, dismissed Air Peace’s claims, stating that they appear to be a deliberate attempt to shift focus from the ongoing probe into the airline’s pricing practices.
The FCCPC revealed that consumer complaints against Air Peace center on the following issues:
Unjustified Fare Increases: Allegations of arbitrary price hikes for advance bookings on certain domestic routes.
Transparency Concerns: Lack of clarity in pricing structures.
Passenger Exploitation: Claims of arbitrary flight cancellations, delays without compensation, and surcharges for rescheduling tickets.
One complaint highlighted by the FCCPC challenges Air Peace’s justification for high fares. While Air Peace claims it spends ₦7 million on fuel for a one-hour flight, consumer petitions argue that a typical Boeing 737-500 used by the airline costs approximately ₦4 million to fuel. With 120 passengers paying an average fare of ₦200,000, the airline would generate ₦24 million per flight—far exceeding operational costs. At the proposed fare of ₦500,000, the revenue would soar to ₦60 million per flight.
The FCCPC noted that some competitors have reduced fares to as low as ₦80,000 for similar routes, demonstrating that affordable pricing and operational sustainability are achievable within the same market. This disparity has led to questions about Air Peace’s pricing model and whether the airline is influencing other carriers to raise fares.
Further compounding consumer frustrations, a recent incident at Abuja’s Nnamdi Azikiwe International Airport saw passengers protesting a four-hour delay on an Air Peace flight to Lagos. The chaos reportedly required security intervention to restore order.
The FCCPC emphasized its legal authority under the Federal Competition and Consumer Protection Act (FCCPA) of 2018 to investigate pricing practices across all sectors, including aviation. The Commission cited Sections 17, 33, 127, and 148 of the Act, which empower it to ensure that pricing is fair, competitive, and non-exploitative.
Responding to Air Peace’s assertions that only aviation regulators can oversee its operations, the FCCPC clarified that it is mandated to protect consumer rights, regardless of the sector. “Passengers are consumers of its services. Their rights are inalienable and guaranteed under the FCCPA,” the Commission stated.
The FCCPC reiterated its commitment to conducting a thorough investigation and warned that no amount of “blackmail or cowboy tactics” from Air Peace would derail its efforts.
The FCCPC reassured Nigerians that it remains resolute in its mission to promote market fairness, safeguard consumer rights, and foster transparency in the aviation industry. It called on the public to disregard unfounded media reports and trust in its ability to uphold justice.
As investigations continue, Air Peace and other stakeholders will need to cooperate with regulatory authorities to address these pressing concerns and ensure compliance with consumer protection laws.
