Federal Government Cautions Air Peace Amid FCCPC Investigation Into Alleged Consumer Rights Violations

Federal Government Cautions Air Peace Amid FCCPC Investigation Into Alleged Consumer Rights Violations

The Federal Government has issued a warning to Air Peace, urging the airline to not obstruct an investigation into alleged violations of consumer rights…READ MORE…

This message was conveyed by Ondaje Ijagwu, spokesperson for the Federal Competition and Consumer Protection Commission (FCCPC), in a statement released on Sunday.

This development follows Air Peace’s claim on Friday that allegations from the FCCPC regarding exploitative fare practices have negatively impacted the airline.

Air Peace argued that the FCCPC failed to follow appropriate procedures when making these allegations. The airline asserted that domestic airfares should range from ₦500,000 to ₦700,000 per route.

In response, the FCCPC suggested that Air Peace’s recent statements appear to be an attempt to deflect attention from the ongoing investigation into allegations of inflated ticket prices. The Commission noted that consumer complaints indicated that Air Peace’s fare prices are, indeed, exploitative.

The FCCPC has raised concerns about Air Peace’s pricing model, especially as its competitors offer lower fares. Furthermore, the Commission issued a clarification regarding reports that circulated in some media outlets, which misrepresented discussions from a December 3 meeting between FCCPC officials and the Air Peace team in Abuja—this meeting followed numerous passenger complaints.

The Commission’s statement clarified, “Even though Section 33 of the Federal Competition and Consumer Protection Act (FCCPA) 2018 grants the Commission the discretion to conduct inquiries publicly or privately, the FCCPC chose to hold the December 3 session privately to maintain confidentiality.”

“However, within hours of the session’s conclusion, misleading information was leaked to the media, falsely claiming that ‘Air Peace was not under investigation’ and quoting the airline’s Chairman, Mr. Allen Onyema, engaging in self-promotion. Notably, the leaks omitted Mr. Onyema’s boastful declaration during the December 3 meeting that he could choose to shut down the airline, ostensibly as a gesture to benefit the nation by providing air travel.”

In a statement on December 5, the Commission reaffirmed that the inquiry was ongoing and cautioned the public to be aware of misleading reports, emphasizing that these claims were not made through the Commission’s official communication channels.

In a surprising twist, Air Peace held a press conference in Lagos on Friday, making several bold assertions and insinuations intended to stir public sentiment while ignoring key issues at hand.

For example, by asserting that only the aviation regulatory agency has jurisdiction over its operations, Air Peace displayed a concerning misunderstanding of the legal and ethical framework in which it operates. Passengers are consumers of the airline’s services, and their rights are guaranteed under the FCCPA, which forms the basis for the FCCPC’s intervention.

According to Section 17(e) of the FCCPA 2018, the FCCPC is authorized to conduct inquiries deemed necessary regarding matters within its jurisdiction. Additionally, Section 127(1)(a) empowers the FCCPC to ensure that pricing practices across all sectors, including aviation, are fair, competitive, and non-exploitative. Specifically, it prohibits any entity from supplying goods or services at prices or terms that are clearly unfair or unreasonable.

Following consumer complaints, the FCCPC has been investigating Air Peace for claims of unjustified fare hikes for advance bookings on specific domestic routes, a lack of pricing transparency, and potential violations of consumer rights and fair competition principles.

The situation becomes more troubling with Air Peace’s claim that ideal fares for a one-hour domestic flight should be between ₦500,000 and ₦700,000. The airline mentioned spending an average of ₦7 million on fuel for such a flight; however, some consumer complaints challenge this assertion. It has been argued that a typical Boeing 737-500 operated by Air Peace requires only ₦4 million to fill its tank, with potential revenue of ₦24 million from a fully booked flight at the current average fare of ₦200,000. Under Air Peace’s proposed fare of ₦500,000, that same flight would yield ₦60 million.

Interestingly, while Air Peace proposes ₦500,000 fares, a rival airline has recently reduced its fares to ₦80,000 for similar routes, demonstrating that affordability and operational sustainability can coexist in the same environment. This pricing decision has sparked questions from petitioners regarding whether Air Peace is facing exorbitant fuel costs.

Moreover, some complaints have accused Air Peace of encouraging other airlines—many with smaller fleets—to raise their fares.

Furthermore, some passengers have accused Air Peace of arbitrarily canceling flights without providing adequate care or compensation. For instance, there was a disturbance at the domestic wing of Nnamdi Azikwe International Airport on November 29 when frustrated Air Peace passengers protested after experiencing over four hours of delays on an Abuja-Lagos flight, prompting security intervention.

Passengers have also voiced their grievances about being charged a 50% surcharge when attempting to rebook their tickets after experiencing delays or cancellations.

These are among the significant issues the FCCPC is investigating to ensure that Nigerian consumers are not unfairly exploited through price manipulation.

To clarify, no amount of intimidation or intimidation tactics can deter the FCCPC from thoroughly investigating the allegations against Air Peace and pursuing necessary actions under the provisions of the FCCPA.

The Commission reassures the public of its commitment to uphold consumer rights, promote competition, and foster a fair and transparent marketplace across all sectors, including aviation, as mandated under Section 104 of the FCCPA.

Naija News understands that the FCCPC has already begun its investigation into Air Peace over claims of exploitative pricing practices.

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