Aviation stakeholders divided over FCCPC price fixing report
A sharp divide has emerged among aviation stakeholders over allegations that domestic airlines engaged in price fixing during the last festive season, following an investigation by the Federal Competition and Consumer Protection Commission (FCCPC).
The Commission’s report, which indicted five unnamed domestic carriers, has ignited sustained debate across the sector. The Airline Operators of Nigeria (AON), representing the affected carriers, has rejected the findings, arguing that the FCCPC lacks the technical competence to assess airline economics and warning that the conclusions could further imperil the survival of domestic operators.
But Chris Aligbe, Managing Director of Belujane Konzult, backed the Commission’s intervention, asserting that the FCCPC acted within its legal mandate to combat anti-competitive practices across all industries.
Aligbe acknowledged that the Nigeria Civil Aviation Authority (NCAA) oversees safety and technical standards in aviation, but he insisted that the FCCPC holds overarching authority on competition and consumer protection matters. He maintained that the steep rise in airfares during the peak travel period lacked sufficient justification from airlines, making regulatory scrutiny necessary to safeguard passengers from exploitation.
“The FCCPC is an omnibus regulator,” Aligbe said. “Irrespective of sector-specific regulators, they cannot go outside their industry because they are sector-specific. The FCCPC has an overall right and can override if the chips are faced, if the thing comes to the fore.”
He rejected claims of regulatory overlap, adding: “For those who have said it is a duplication of duties and that the issue should be transferred to the NCAA, I say it is wrong. There are things in each sector, the details that the FCCPC may not know.”
Aligbe further accused some airlines of manipulating booking systems during peak periods by restricting early reservations, thereby creating artificial demand and compelling passengers to buy tickets at inflated prices. He warned that without enforcement and sanctions, such practices would continue, pointing out that regulators in other jurisdictions have ordered airlines to refund passengers in similar cases.
On the opposing side, retired pilot Muhammed Badamosi defended the airline operators, stressing that carriers have the right to set fares based on prevailing economic conditions. He noted that the soaring cost of operations in the industry justified fare adjustments and urged critics to consider the financial pressures facing airlines.
“The operators have the right to act and speak on what concerns them, and it is in the process that they can give the reasons as to why they have increased airfares,” Badamosi said. “I do not know why somebody will tell them that they do not have the right to increase or act on what concerns them; it is business and it must be treated as such.
“We all know the way things are skyrocketing in the market now. Why should anyone then decide to enforcea price on them without knowing how they got to that point or what they have invested into their business? Nobody wants to run out of business.”
He added that airlines must exercise restraint in pricing, cautioning that excessive fares could ultimately drive passengers away.
A different perspective came from retired Group Captain John Ojukutu, who argued that the FCCPC lacks the proper authority to challenge airline pricing unless it collaborates with the NCAA or gains full visibility into operational costs.
“The FCCPC will not have the power to appropriately wade into airlines’ pricing issues because the laws have stipulations about how airlines arrive at their pricing, which is approved by the NCAA,” Ojukutu said. “It is there in Part 18 of the regulations.
“So, it is either the FCCPC is able to check Jet A1 prices, ground handling costs, and other operational costs and investments done by the airline; until then, the FCCPC may not have what it requires to do the job accurately as it concerns airfare prices.”
As the debate continues, industry observers note that the outcome could set a significant precedent for the balance between consumer protection and pricing flexibility in Nigeria’s aviation sector.