Keyamo knocks FCCPC over Air Peace pricing inquiry

Keyamo knocks FCCPC over Air Peace pricing inquiry

Minister of Aviation and Aerospace Development, Festus Keyamo, has criticized the Federal Competition and Consumer Protection Commission (FCCPC) for publicly questioning Air Peace’s pricing practices without first consulting the Nigeria Civil Aviation Authority (NCAA).

Speaking during an interview on The Morning Show on Arise News TV on Sunday, Keyamo addressed the FCCPC’s ongoing investigation into allegations of exorbitant airfare charged by the airline.

He emphasized that the NCAA, rather than the FCCPC, holds regulatory authority over airline pricing and should have been consulted before any public statements were made.

“I think it was a very careless statement – I say that with all apology – by the agency, making such a statement without consulting the core agency involved in regulation, which is the NCAA,” Keyamo remarked.

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“They should have contacted the NCAA for them to look at the books, which we have been doing, so we would have given them facts,” he added.

Keyamo also shed light on the challenges facing Nigerian airlines, including Air Peace, which he attributed to operational capacity constraints rather than price manipulation. These challenges include difficulties in acquiring and maintaining aircraft, coupled with fluctuating foreign exchange rates that significantly impact operational costs.

He further noted that many airlines in the country rely on wet-leased aircraft, which comes with substantial additional expenses.

Recall that the FCCPC had recently announced investigations into Air Peace, GTBank, and MTN over consumer complaints, including alleged exploitative pricing by the airline.

Air Peace’s Chief Operating Officer, Oluwatoyin Olajide, defended the airline’s pricing structure, citing rising operational costs. According to Olajide, a single one-hour flight can cost as much as N7 million for fuel and $4,000 for aircraft leasing.

 

Keyamo knocks FCCPC over Air Peace pricing inquiry