Aviation: Nigerian consumers accuse Air Peace of price fixing, gouging, other infractions –Regulator

*The Federal Competition and Consumer Protection Commission discloses several Nigerian air travellers have petitioned Air Peace, an indigenous airline, to the Commission, accusing the aviation firm of engaging in price fixing, flight cancellations, and other alleged infractions in the country

Isola Moses | ConsumerConnect

Contrary to the aviation firm’s claims on misleading Jet A1 fuelling costs and airfare hikes, Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has disclosed that several air travellers have petitioned Air Peace to the Commission, accusing it of engaging in price fixing and flight cancellations, among other alleged infractions in the country’s aviation industry.

The Commission, in a statement issued Sunday, December 8, 2024, noted that some other petitions by air travellers before the Commission also accused Air Peace of being “the one instigating other airlines (which ironically possess far smaller fleet individually) to hike fares in the local aviation industry.”

ConsumerConnect reports price fixing is regarded as a serious form of anti-competitive behaviour in Nigeria, which happens when two or more suppliers of a product or service come together and agree on pricing.

It is noted that price fixing agreements do not need to be in writing or even to have been carried out; they are still against the law, simply making a cartel agreement is illegal.

The illegal practice benefits the individuals or firms involved in setting the price and hurts consumers and firms on the receiving end.

Ondaje Ijagwu, Director of Corporate Affairs at the Commission, in the statement, said Instead of facing the issues raised against the airline, the aviation company is busy spewing outburst in what seems “a series of ploys calculated to both obfuscate the issues and distract the Commission from the ongoing inquiry into alleged exploitative ticket pricing among other potential violations of consumers’ rights.”

The Commission further revealed that some petitioners as well accused Air Peace of “cancelling flights arbitrarily without care nor compensation for passengers.”

It particularly noted an instance that occurred Friday, November 29, at the domestic wing of the Nnamdi Azikiwe International Airport (NAIA), in Abuja, FCT.

The FCCPC said the scenario at Abuja Airport witnessed a rampage by irate passengers of Air Peace at 10 p.m., following over four-hour delay on the Abuja-Lagos service, thereby threatening public peace.

The Commission stated: “It took the intervention of a combined team of security agents to restore normalcy that night at the nation’s premium international gateway.

“Passengers have also complained that when they sought to utilise their tickets on another day after suffering untold inconveniences of flight delay or cancellation earlier, they were asked and forced to pay 50% surcharge.”

Ijagwu said: “These are some of the weighty issues the Commission is looking into with a view to ensuring that Nigerian passengers are not exploited unduly through price-fixing and gouging.”

The Commission also stated: “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 with a view to taking the appropriate action in accordance with the provisions of the FCCPA.”

FCCPC’s powers to ensure fair, non-exploitative pricing for air travellers

In reaction to Air Peace reported disapproval of the Commission’s interventions in the consumer rights violations in the aviation sector, the FCCPC said the company rather has poor understanding of both the legal and moral pillars of its operating environment in Nigeria.

“For instance, in asserting that only the aviation regulatory agency could inquire into its affairs, Air Peace only betrays a terribly poor understanding of both the legal and moral pillars of its operating environment.

“Passengers are consumers of its services. Their rights are inalienable and guaranteed under the FCCPA. It is the basis of FCCPC’ intervention,” the state noted.

The market regulator averred: “As stipulated in Section 17(e) of the FCCPA 2018, the FCCPC is mandated to carry out inquiries considered necessary or desirable in connection with any matter falling within the purview of the Act.”

‘Blackmail or cowboy tactics’ won’t obstruct ongoing inquiry: FCCPC

The Director of Corporate Affairs of FCCPC also stated: “Furthermore, Section 127(1)(a) empowers the FCCPC to ensure that pricing practices across all sectors, including aviation, are fair, competitive, and non-exploitative.

“Specifically, it states that no undertaking shall offer to supply, supply, or enter into an agreement to supply goods or services at a price or on terms that are manifestly unfair, unreasonable, or unjust.”

It said: “Pursuant to Section 148(3)(c) of the FCCPA 2018, the FCCPC, upon receipt of a consumer complaint, can direct an inspector to institute an inquiry and investigate the matter as quickly as practicable to determine whether the undertaking has acted inconsistently with the provisions of the Act.”

The Commission, therefore, cautioned Air Peace to face the inquiry into consumers’ tonnes of allegations levelled against it, and stop resorting to what the FCCPC described as the company’s “blackmail or cowboy tactics” to obstruct the ongoing regulatory inquiry into its operations.

Ijagwu added: “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.”

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