FCCPC Clarifies Inquiry into Air Peace, Praises Onyema’s Patriotism, Aviation Expertise
The Federal Competition and Consumer Protection Commission (FCCPC) has clarified that its recent engagement with Air Peace is not an investigation but an inquiry aimed at understanding the airline’s pricing methodology in response to consumer complaints.
This clarification was made on Tuesday in Abuja by the FCCPC’s Director of Surveillance and Investigation, Mrs Boladale Adeyinka, during a meeting with the Chairman of Air Peace, Dr Allen Onyema, and his team.
“Thank you so much for honouring our invite in person. We have gained more insight into your operations. Just to reiterate, this is not an investigation but an inquiry to understand and address concerns raised by consumers,” Adeyinka stated.
She commended Air Peace for its transparency and contributions to the aviation industry, noting, “Your expertise and insights are invaluable to Nigerian consumers. This is our own, and we are happy you are doing well because when consumers refer to Air Peace as ‘our airline,’ it signifies a collective sense of ownership.”
Adeyinka emphasised that the FCCPC exists to balance the interests of businesses, consumers, and operators, with a focus on ensuring business stability and sustainability.
She assured that the Commission would intervene where necessary to protect not only Air Peace customers but all air passengers and consumers of aviation services in Nigeria.
She further lauded Dr Onyema’s patriotic spirit and philanthropy, encouraging him to remain steadfast in his contributions to humanity and the aviation sector.
Responding, Dr Allen Onyema detailed the challenges airlines face in Nigeria, particularly the disparity between operational costs and fare pricing.
He explained that aviation pricing globally averages between $250 and $300 per hour, and in some cases, as high as $540. However, Nigerian airlines are constrained by the low purchasing power of the populace.
“For us at Air Peace, safety is a pre-condition, not just a priority. However, the fare regime in Nigeria does not match the cost of putting an aircraft in the air, which is why many airlines fail,” Onyema said.
He revealed that the aviation business is burdened by high costs, including interest rates on loans ranging from 33 to 35 percent, annual insurance costs of about $12 million – sufficient to insure eight aircraft abroad – and the volatility of aviation fuel prices.
“Additionally, it costs about $4,000 per hour for landing an Airbus, and engine flight circle costs are also substantial. If we were to incorporate all these expenses into ticket pricing, many Nigerians would be unable to afford air travel,” Onyema stated.
He lamented that operational costs in Nigeria often account for up to 70 percent of business expenses, compared to 40 percent in other regions.
Despite these challenges, Onyema expressed unwavering patriotism, citing his efforts during critical periods such as the COVID-19 pandemic and his support in evacuating stranded Nigerians abroad.
“Nothing will dampen my patriotic spirit. I am committed to serving Nigeria and ensuring the sustainability of the aviation sector,” Onyema concluded.
The FCCPC and Air Peace pledged to continue working together to address consumer concerns and promote a competitive, consumer-focused aviation market in Nigeria.
