FCCPC begins investigations to determine exploitation in airfare price

The Federal Competition and Consumer Protection Commission (FCCPC), says it has commenced an expanded investigation into pricing templates behind high ticket rates charge by some airlines on some domestic routes.

A statement issued by Mr Ondaje Ijagwu, the Director, Corporate Affairs of the Commission in Abuja on Friday, said the investigation was to establish possible violations of the provisions of the law.

Ijagwu said that concerns had been expressed widely in the past few days over what appeared to be coordinated manipulation or exploitation in the pricing of airline tickets by some airlines on certain routes.

He said the routes where concerns had been raised included the South-East and South-South, as the festive season began.

According to him, the ongoing investigation targets operators on the identified routes.

He said the Commission would apply appropriate enforcement measures where evidence showed any violation of the Federal Competition and Consumer Protection Act (FCCPA).

Ijagwu explained that Air Peace, had instituted a court action seeking to restrain the Commission from examining its pricing mechanisms, following the commencement of an investigation into its pricing model after widespread complaints from members of the public.

He said the ongoing inquiry was without prejudice to the case instituted against the Commission by Air Peace.

The director quoted Mr Tunji Bello, the Executive Vice Chairman of FCCPC, as saying “the Commission would not hesitate to act where evidence showed that consumers welfare or market competitiveness were being undermined.

”For the avoidance of doubt, we are not a price control board but the FCCPAct 2018 empowers us to check the exploitation of consumers.

”When we receive petitions or where we find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise.

”Given the arbitrary spike in airfares, the Commission is extending its review of pricing patterns, the basis for the increases reported by consumers, and any practices that could undermine fair competition.

”Where evidence confirms a breach of the Act, FCCPC will apply appropriate enforcement measures,” Bello said.

Bello said the Commission would continue to provide updates on the ongoing investigations in the aviation industry.