FCCPC, Air Peace Clash over Consumer Rights Inquiry as Keyamo Weighs in

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a cautionary statement against Air Peace, accusing the airline of obstructing its ongoing inquiry into alleged exploitative ticket pricing and consumer rights violations.

This development follows a contentious exchange between the regulatory body and the airline, with both parties presenting differing narratives regarding recent interactions.

The FCCPC’s investigation stems from a flood of consumer petitions alleging arbitrary fare hikes, opaque pricing structures, and poor service delivery by the airline.

At the heart of the inquiry is the claim that Air Peace proposed a benchmark fare of between N500,000 and N700,000 for a one-hour domestic flight, which the FCCPC describes as potentially exploitative.

Recall that on December 3, the FCCPC held a closed-door meeting with Air Peace representatives to address these allegations.

According to the FCCPC, this session, conducted in camera to preserve confidentiality, was followed by media leaks misrepresenting the proceedings.

Reports suggested that Air Peace was not under investigation and highlighted self-praising statements by its Chairman, Mr Allen Onyema.

The FCCPC refuted these claims in a subsequent December 5 statement, urging the public to disregard “manufactured news.”

Further inflaming tensions, Air Peace held a press conference on December 6 in Lagos, during which the airline criticised the FCCPC’s intervention and asserted that only aviation-specific regulators, such as the Nigerian Civil Aviation Authority (NCAA), had jurisdiction over its operations.

The FCCPC responded by clarifying its statutory mandate under the Federal Competition and Consumer Protection Act (FCCPA) 2018.

The agency emphasised that it is empowered to investigate unfair pricing and anti-competitive practices across all sectors, including aviation.

The Commission also noted consumer complaints of flight delays, arbitrary cancellations, and surcharges imposed on rescheduled tickets, which it says warrant thorough investigation.

Adding a new dimension to the saga, Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, criticised the FCCPC’s public handling of the issue.

Speaking in an interview with ARISE NEWS, Keyamo described the FCCPC’s statement as “careless” and suggested that the Commission should have consulted the NCAA before going public.

“The power to regulate these airlines and oversee price adjustments lies with the NCAA,” Keyamo said. “They [the FCCPC] should have engaged with the NCAA, which has been monitoring the situation and can provide factual insights. Instead, they singled out a few airlines, which could damage their reputation as we work to enhance their capacity.”

Keyamo highlighted systemic issues affecting Nigeria’s aviation industry, including foreign exchange fluctuations and the reliance on foreign currency for aircraft leasing and operations.

He attributed rising ticket prices to these challenges rather than deliberate exploitation.

“We are facing capacity limitations in acquiring and maintaining aircraft. Most airlines are dependent on wet leasing, which involves significant foreign exchange. The fluctuating naira further complicates their operations,” he explained.

The minister revealed plans to lead a Nigerian delegation to Dublin in January 2025 to engage with global aircraft financiers.

He expressed optimism that improved access to affordable leasing options, facilitated by recent policy reforms, would help stabilise ticket prices and improve airline operations.

Despite the criticism, the FCCPC has reiterated its commitment to safeguarding consumer rights and promoting market fairness.

The Commission stated unequivocally that no amount of “blackmail or cowboy tactics” would deter it from conducting a thorough investigation into the allegations against Air Peace.

The Commission, in a statement signed by Director of Corporate Affairs, Ondaje Ijagwu, reassured the public that it remains focused on its mandate to foster a transparent and competitive marketplace.

It noted that consumers’ rights are inalienable, and guaranteed under the FCCPA, adding that it will not relent in ensuring accountability even in the aviation sector.

As the inquiry continues, the FCCPC’s investigation could set a precedent for how consumer rights are protected in Nigeria’s aviation sector.

Meanwhile, Air Peace faces mounting scrutiny as consumers and regulators alike await the outcome of the Commission’s findings.