Govt accuses Nigerian airlines of price-fixing, directs operators to reverse ‘illegal’ ticket hike

The Nigerian government has instructed Nigerian-owned airline operators in the country to reverse their airfares to below N50,000.

This is as the price of aviation fuel, Jet A1 oil increased to N440 since Monday from N426 it was sold last week.

The order for airline operators to reverse airfares came from Babatunde Irukera the Executive Vice Chairman, Federal Competition and Consumer Protection Commission (FCCPC) on Wednesday.

According to him it is illegal for airline operators to come together and decide to set a fare base for the sector.

Irukera further accused the airline operators that the decision was reached during association meetings.

He said, “credible information revealed that while attendees at the meeting did not arrive at a consensus, the meeting ended in a resolution that encouraged or consented to the coordinated conduct.”

“FCCPA prohibits conduct or any coordination between competitors including on the platform of trade associations.

”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.

Read also: Nigerian govt directs airlines to refund passengers 100% airfares after any two-hour delay

”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 compliance by others,” he said.

The FCCPA further called on domestic airline operators to ensure strict and prompt compliance with the interim order pending the outcome of the commission’s investigation.

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