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Airfare increase: FG probes domestic airlines

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The Federal Government has begun investigations into the latest increase in airfares by domestic airlines and the alleged collusion by the airlines in the fare fixing arrangement.

Price-fixing is a practice whereby rival companies come to an illicit agreement not to sell goods or services below a certain price.

A report by The Punch indicated that efforts are currently ongoing to unravel reasons for the sudden hike in airfares by all domestic carriers, as the airlines, aside from  Green Africa Airways, raised the airfare for a one-hour flight in economy class to as high as N50,000.

This amounts to over 60 per cent hike in the domestic airfare, as the rate was hitherto between N26,000 and N30,000 a few weeks ago.

It quoted an email allegedly sent by a domestic carrier to its travel agents stating that all airlines had effected the same increase in airfares.

This is said to be suggestive of a unanimous decision by domestic carriers to engage in price fixing.

The email read in part, “This is to update you that effective today, February 18, 2022, the airline’s ticket fares have been reviewed with the least fare at N50.000 only across all our routes.

“This has become necessary in view of the current hike in prices of aviation related materials, services, and exchange rate.

“It is worth noting that all other airlines have also effected same fare increase. We crave your understanding and support to sell our stated fares.”

Executive Vice-Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission, Babatunde Irukera, said the FCCPC was aware of the latest concern in the aviation sector.

He was quoted as saying the commission had commenced investigations into the issues raised by both passengers and other concerned observers in the aviation sector.

He said, “We’ve been engaging the Nigerian Civil Aviation Authority on that. Firstly, it is against the law for competitors to coordinate and come together to discuss or agree on price. That is forming a cartel.

“But an announcement in itself will not be sufficient evidence of the cartel. You need to investigate and discover if there is such cartel. Now the articles we’ve read seem to suggest that they agreed as an airline association. But we haven’t seen an evidence of that.

“And because cartel is criminal and will involve monetary penalties, it requires evidence to clear every doubt. So we need to find the evidence if that’s what happened, for instance, one airline has said to us, ‘no, we were never part of any announcement’.”

Irukera added, “They said others increased airfares and they saw an opportunity to increase their own, which was part of market forces. So it is now for us to gather the evidence to narrow it down to a violation of law, to at least show that it was a coordinated conduct.”

He said the commission would issue a public statement on the development soon, adding that the FCCPC was currently “gathering evidence to see at what point in their systems did the airlines changed their fares.”

Irukera said, “This is to see if there was any coordination or if was a response to what another airline did or not. So the short answer to this is that any coordinated conduct or agreement with respect to price among competitors is a violation of law and the FCCPC strongly rejects that and will pursue it.

“However, in this case we are gathering information at this point to find the evidence or the lack thereof.”

Aviation

Air Peace gets court order to answer queries on aircraft operations

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Air Peace gets court order to answer queries on aircraft operations

A Lagos State High Court has ordered Air Peace to respond to questions brought by the Foundation for Investigative Journalism in a libel suit No. LD/ADR/4833/23 filed by the airline on October 12, 2022, regarding its aircraft operations from Lagos to Anambra State.

Air Peace insisted that it followed safety standards and practices in accordance with relevant regulations and policies.

It questioned the FIJ’s interrogations of its aircraft and flight operations, calling them “scandalous and irrelevant” to the libel case.

FIJ was dissatisfied with Air Peace’s responses to the queries and filed an application to compel them to adequately explain the objections.

Justice Kudiarat Jose upheld the argument of FIJ, represented by its counsel, Abimbola Ojenike and Jesulayomi Oyelami of Slingstone LP, stating that the questions requesting the details of the first two aircraft designated to convey passengers were relevant to the facts in issue, related to the defendant’s case, and capable of proving that the defendants were correct.

As a result, the court ordered Air Peace to respond to questions 1, 4, and 7 of the defendant’s interrogation within seven days of receiving the order.

The questions are: ‘Provide a comprehensive description and specification of the aircraft 5N-BUL initially scheduled for the operation of Flight P47336 on October 12, 2022. The description should include the make, year, engine type, and service information, including the most recent aircraft maintenance checks conducted prior to Flight P47336 on October 12, 2022, particularly but not limited to any faults or repairs on the systems.’

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The airline is also to: ‘Provide comprehensive specifications of the technical issues discovered in the course of operation of Flight P47336 and the circumstances that led to the change of the aircraft from 5N-BUL to 5N-BQQ.’

The court also ordered the airline to: ‘Provide the comprehensive descriptions and specifications of the aircraft 5N-BQQ initially onboard the passengers for the operation of Flight P47336 on October 12, 2022.

‘The description should include make, year, engine type, and service information, including the most recent aircraft maintenance checks conducted prior to Flight P47336 on October 12, 2022, particularly but not limited to any faults or repairs on the systems.

The claim was deferred until May 23, 2024, for additional proceedings.

In October 2022, FIJ stated that passengers on an Air Peace flight from Lagos to Anambra escaped death after the engine failed three times at the takeoff point.

According to FIJ, the aircraft was supposed to take off at 11 a.m. but was delayed for two hours when the airline’s management announced that the jet originally booked for the Anambra flight had suddenly acquired an issue.

“The engine stopped three times, and there was no explanation until passengers asked to be allowed to leave the plane. The captain only gave a vague explanation when the passengers expressed their concerns. He said the DAC or something similar to that went off on us,” FIJ had quoted one of three sources as saying.

“This was supposed to be a substitute plane as the first couldn’t be used for technical reasons. If this lackadaisical attitude continues, I fear they may record a crash soon. If we had flown today, we likely would have crashed.”

Air Peace then filed legal action against FIJ, seeking N50 million in damages, N250 million in aggravated damages, and N5 million in legal fees.

Air Peace gets court order to answer queries on aircraft operations

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Safety: NCAA to audit all domestic airlines, says Aviation minister

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Safety: NCAA to audit all domestic airlines, says Aviation minister

Minister of Aviation and Aerospace Development, Festus Keyamo, has said the Nigerian Civil Aviation Authority (NCAA) will carry out a comprehensive audit on all local airlines over safety concerns.

This is coming after a runway incursion incident in which Dana Air’s plane carrying 83 passengers with six crew members skidded the runway at the Lagos airport leading to diversion of flights

The operations of Dana Air were immediately suspended and NCAA directed to commence a comprehensive audit on the airline.

Keyamo spoke on the general audit of all domestic airlines on Thursday when he appeared on Channels TV Politics Today programme.
He said beyond the suspension of Dana Airlines and the ongoing audit of the airline, all other carriers in the country would be audited to guarantee the safety of passengers and the health of the civil aviation industry.

The directive to suspend the operations of the Dana Air was contained in a letter issued and endorsed by the NCAA Acting Director General, Chris Najomo, in Abuja.

It is the second time within two years that the NCAA would suspend the airline’s operational licence over safety violations.

It said the latest action was based on “elevated safety concerns” posed by the airline.

“As a precautionary step, and in accordance with Sec 31 (7) of the Civil Aviation Act 2022, the Authority has imposed a suspension on your Air Operator Certificate (AOC) with effect from 24″ April, 2024 at 23:59 to allow for a thorough safety and economic audit,” the letter partly read.

The NCAA also stated, “The safety audit will entail a re-inspection of your organisation, procedures, personnel, and aircraft as specified by Part 1.3.3.3 of the Nigeria Civil Aviation Regulations, while the economic audit will critically examine the financial health of your airline to guarantee its capability to sustain safe flight operations.”

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FG suspends Dana Air for comprehensive audit

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FG suspends Dana Air for comprehensive audit

The Federal Ministry of Aviation and Aerospace Development has ordered the suspension of Dana Air flight operations.

This came about 24 hours after the airline’s runway excursion incident at the Murtala Muhammed International Airport in Lagos.

The directive was passed on Wednesday to the Nigerian Civil Aviation Authority to be effected.

A letter signed by the ministry’s Permanent Secretary, Dr Emmanuel Meribole, addressed to the NCAA said recent incidents involving Dana Air had raised concerns about the safety and financial viability of the airline’s operations.

It said the suspension would not be lifted until comprehensive audits on the Dana Air’s fleet had been conducted.

It stated that the audit would include safety protocols, maintenance procedures and financial health.

It stressed that the move to suspend the airline was aimed at ensuring the safety and well-being of Nigerians.

The statement reads, “As the supervisor overseeing our nation’s aviation safety and regulatory compliance, it has come to the Honourable Minister’s attention that recent incidents involving Dana Airline have raised serious concerns regarding both the safety and financial viability of their operations.

“In light of these incidents and with the paramount priority being the safety and well-being of our citizens and travelers, the Honourable Minister has directed that you immediately initiate the suspension of Dana Airline’s fleet until a comprehensive audit can be conducted. This audit should encompass all aspects of safety protocols, maintenance procedures, and financial health to ensure full compliance with our aviation regulations.

“The recent incidents have underscored the urgency of this matter, and it is imperative that swift and decisive action be taken to safeguard the interests of all stakeholders involved.”

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