FCCPC to probe domestic airlines’ ticket pricing models

The Federal Competition and Consumer Protection Commission (FCCPC) says it is probing ticket pricing templates used by some domestic airlines, following rising public complaints about sharp increases on certain routes.

On December 1, 2024, the FCCPC announced plans to investigate complaints of exploitative practices in the aviation sector.

In a statement on Friday, Ondaje Ijagwu, director of corporate affairs at the FCCPC, said concerns have intensified in recent days over what many believe to be coordinated fare manipulation or exploitation — particularly on routes in the south-east and south-south — as the festive season begins.

He said the ongoing probe is focused on operators serving the affected routes.

“Earlier in the year, a major airline, Air Peace, instituted a court action seeking to restrain the commission from examining its pricing mechanisms, following the commencement of an investigation into its pricing model after widespread complaints from members of the public,” Ijagwu said.

“The ongoing inquiry is without prejudice to the case instituted against the commission by Air Peace.

“Section 17(b) of the FCCPA empowers the Commission to monitor economic activities in Nigeria to identify anti-competitive, anti-consumer protection and restrictive practices that may adversely affect consumers.

“Section 17(e) enables the Commission to carry out investigations considered necessary.”

‘FCCPC NOT PRICE CONTROL BOARD’

Also speaking, Tunji Bello, the executive vice-chairman and chief executive officer (CEO) of the FCCPC, said the agency’s mandate is clear.

“For the avoidance of doubt, we are not a price control board. But the FCCPA 2018 empowers us to check the exploitation of consumers,” Bello was quoted as saying.

“When we receive petitions or where we find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise.”

Bello said the commission will act decisively wherever evidence shows that consumer welfare or market competitiveness is being undermined.

Citing the “arbitrary spike” in fares, the commission said it is widening its review of pricing patterns, the justification for recent increases, and any practices that may undermine fair competition.

The FCCPC added that it will impose enforcement actions if breaches of the Act are established.

The commission promised that further updates on the ongoing aviation sector investigation will be provided in due course.

The senate had summoned Festus Keyamo, minister of aviation and aerospace development, and key industry stakeholders for an urgent meeting over the sharp rise in domestic airfares.

Keyamo had blamed the high airfares on aircraft scarcity and insufficient maintenance infrastructure in the country.