Federal Government of Nigeria has begun an investigation concerning the rise in airfares and flight delays by domestic airlines.
Gatekeepers News reports that the investigation is being carried out by the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Civil Aviation Authority (NCAA), in a bid to tackle consumer-related issues which include high airfares, insensitive flight delays and cancellations and others, in the aviation sector.
The FCCPC has therefore directed domestic airline operators to immediately discontinue the current implementation of airfare increases pending the outcome of its investigation.
FCCPC Executive Vice Chairman, Babatunde Irukera, in a statement made available on Wednesday, said the interim order was in line with Sections 17(a),(e),(l),(s),18(3)(a), 157 and 158 of the FCCP Act.
The commission’s investigations, according to Irukera, has revealed that airline operators in supposedly association meetings discussed multiple industry-wide issues; particularly challenges experienced by their members.
He said that credible information revealed that while attendees who engaged in mutual discussions at the meeting, did not arrive at an initial consensus, the meeting ended in a resolution that encouraged or consented to the coordinated conduct despite significant controversy.
The FCCPC boss stressed that the FCCPA prohibits conduct or any coordination between competitors including on the platform of trade associations.
He stated, ”Specifically, Section 107 (1)(a) forbids competitors from fixing prices, while Section 108 prohibits any conspiracy, combination, agreement or arrangement between competitors in any manner that unduly restrains or injures competition.
”Coordination in increasing prices otherwise known as cartel is an unambiguous infringement of the FCCPA.
”The current and prevailing Nigerian Civil Aviation Regulations (Air Transport Economic Regulations) in Regulation 18.15.2 (i) and (iii) expressly prohibits airlines from engaging in any contract, arrangement, understanding, conspiracy or combination in restraint of competition.
”This includes directly or indirectly fixing a charge, fee, rate, fare or tariff and any collusive action.
”The commission in addition to engaging the relevant stakeholders is entering and dispatching interim orders under Sections 17(a),(e),(l),(s),18(3)(a), 157 and 158 of the FCCPA.
”Prohibiting the performance or continuation of any agreement or arrangement associated with, or resulting from discussions, deliberations, debates, argument or resolutions of/at any meeting.
”Regarding any increase in airfares and or any conduct not necessarily directly in compliance, but in response to changes in the market on account of a compliance by others.’’
He urged scheduled domestic airline operators to ensure strict and prompt compliance with the interim order pending the outcome of the commission’s investigation.
