Air Peace Invitation An Inquiry into Airline’s Pricing Methodology, FCCPC Says

The Federal Competition and Consumer Protection Commission (FCCPC) has stated that its recent invitation to Air Peace was an inquiry into the airline’s pricing methodology.

In a press release issued on Thursday, the commission clarified that the engagement being conducted is focused on addressing poor service delivery, amongst other consumer complaints.

It stated that the aim is to ensure compliance with regulatory standards, improving transparency, and protecting consumer interests.

Speaking earlier during a meeting with Air Peace executives in Abuja on Tuesday, the FCCPC Director of Surveillance and Investigation, Boladale Adeyinka, expressed gratitude to the airline for honoring the invitation.

She reiterated that the purpose was to gain insight into Air Peace’s operations and ensure consumer concerns are addressed.

“Thank you so much for honoring our invite in person. We have gained more insight into your operations,” Adeyinka said. “Just again to reiterate that it is not an investigation, it is an inquiry to understand and, again, find out based on consumer complaints.”

Adeyinka commended Air Peace for its contributions to the aviation industry and its impact on Nigerian consumers, stating, “This is our own. We are happy that you are doing well because if the consumers are saying this is our aircraft, it means that ownership has moved from you to every Nigerian.”

She also stressed the FCCPC’s commitment to fostering business stability and sustainability in the aviation sector.

“We will review the situation and intervene where we can, not just for Air Peace customers but generally for all air passengers and other consumers of aviation services,” Adeyinka said.

In his response, the Chairman of Air Peace, Dr. Allen Onyema, shed light on the complexities of fare pricing in Nigeria’s aviation industry, comparing it to global practices.

He noted that while international pricing models suggest fares of $250 to $300 per hour of flight, Air Peace has deliberately kept fares lower to accommodate the purchasing power of Nigerians.

Onyema highlighted the financial challenges faced by airlines in Nigeria, citing high interest rates on loans, annual insurance costs exceeding $12 million, fluctuating aviation fuel prices, and dollar-dependent expenses for aircraft parts and maintenance.

Onyema emphasised that Air Peace prioritises safety over profit, stating, “For us at Air Peace, safety is a precondition rather than just a priority.”

Onyema also called for better support for the aviation sector, pointing out that operational costs in Nigeria are significantly higher than in other countries. He noted that while operational costs account for 40% of expenses in other markets, the figure rises to 70% in Nigeria.

Despite these challenges, Onyema reaffirmed his commitment to serving the nation, referencing Air Peace’s role during the COVID-19 pandemic and other instances where Nigerians were repatriated at no cost to the government.

“Nothing will kill the patriotic spirit in me,” he said.

The Commission also noted that it is reviewing information and responses being provided by Air Peace and other entities under inquiry, adding that appropriate determinations will be made, and necessary actions taken to address any identified violations.

Chioma Kalu

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