As consumer protection commission looks into fare increase

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3 years ago

The country’s aviation sector has been engrossed in different issues heating up the entire system in the last month.

Top on the topical issues is the drama that has unfolded and is still unfolding following the recent increase in airfares by domestic airlines which has attracted criticisms and justifications among different interest groups.

The domestic airline operators who had, hitherto the increase, raised alarms over the unfriendly business environment they had been operating in, finally took their destiny in their hands by increasing fares to make them remain in business.

Following the increase, an hour flight that used to cost between N16,000 and N25,000 suddenly jumped to between N35,000, N50,000 and N100,000 depending on the airline and aircraft type.

The fare increase attracted condemnations from key players on the premise that the airlines conspired to foist the new prices on unsuspecting passengers.

Perhaps, the fare increase would not have raised the controversy it generated but for the mode in which the operators adopted that aroused price-fixing allegations.

Following the furore the increase generated, many stakeholders have called on the regulatory agency, the Nigerian Civil Aviation Authority (NCAA) to prevail on the operators to reverse the increase to avoid further negative impact on domestic flight operations.

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As the intrigues continue with the operators debunking the accusation of colluding to fix prices, another federal government organ saddled with the responsibility of ensuring the fair treatment of Nigerians, the Federal Competition and Consumer Protection Commission (FCCPC) has stepped into the matter.

The Commission which has since started investigations into the case has also ordered a reversal to the status quo pending when the investigations will be over.

The coming of the commission this time has opened a new chapter in the history of aviation and has equally called for questioning the role of the NCAA and its consumer protection directorate.

Prior to the issue of fare increase, the sector had been grappling with myriad challenges ranging from hostile policies of the government, multiple taxation, expensive aviation fuel, unstable foreign exchange and many others.

All these challenges obviously have greatly contributed to the ruins of domestic airline operators and their subsequent decision to raise fares.

Again, it is obvious that many investors have avoided the sector because of its complexity, therefore, only the bold few still invest in the domestic airline business.

While no one is trying to exonerate the operators entirely from the challenges confronting them, it is not hidden that other factors have also contributed to the unpleasant situation.

Therefore, while the FCCPC has developed an interest in carrying out its oversight function on the airlines because of the fare increase, it is hoped that the investigations will be holistically extended to other components that make up flight operations in the country.

The commission should not limit its scope to the issue of fare increase but look into the issues raised by the operators for raising their fares in the spirit of equity and justice.

Presently, a litre of aviation fuel sells for between N579 and N600 depending on the route which means additional cost to the airlines.

There is the need to resolve this case once and for all to make air transport more friendly and seamless and making this a reality rests on the shoulders of the FCCPC and the NCAA as the aviation regulator.