FCCPC probes airlines over alleged exploitative airfares

The Federal Competition and Consumer Protection Commission (FCCPC) has expanded its investigation into airline ticket pricing following widespread public complaints over sharp increases in airfares on some domestic routes.

In a statement issued on Friday by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said the probe now covers the pricing templates used by some airlines on selected routes, particularly in the South-East and South-South, as the festive season approaches.

Ijagwu noted that concerns have grown in recent days over what appears to be coordinated or exploitative pricing practices by some operators, prompting the Commission to widen the scope of its ongoing inquiry. According to him, the investigation is focused on airlines operating on the affected routes.

He recalled that earlier in the year, Air Peace instituted a court action seeking to restrain the FCCPC from examining its pricing mechanisms after the Commission commenced an investigation into its pricing model following public complaints. He added that the current inquiry is without prejudice to the lawsuit filed by the airline.

Clarifying the Commission’s position, the FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, stressed that the agency is not a price control body but is empowered by law to prevent the exploitation of consumers.

“For the avoidance of doubt, we are not a price control board. However, the FCCPA 2018 empowers us to check the exploitation of consumers. When we receive petitions or find credible evidence, we will not stand by and watch Nigerian consumers being exploited under any guise,” Bello said.

He further warned that the Commission would not hesitate to take action where evidence shows that consumer welfare or market competition is being undermined.

The FCCPC cited Sections 17(b) and 17(e) of the Federal Competition and Consumer Protection Act (FCCPA), which empower the Commission to monitor economic activities, identify anti-competitive and anti-consumer practices, and carry out necessary investigations.

While reiterating that it does not regulate prices, the Commission noted that fair pricing remains a core objective of the Act, which seeks to protect consumers from excessive, misleading, opaque or collusive pricing while promoting competitive markets.

According to Bello, the arbitrary spike in airfares has prompted the Commission to review pricing patterns, the basis for the reported increases, and any practices capable of undermining fair competition.

He assured that appropriate enforcement measures would be applied where violations of the Act are established, adding that the Commission would provide further updates on the investigation in due course.