The Federal Competition and Consumer Protection Commission (FCCPC) has expanded its ongoing investigation into airline ticket pricing, focusing on fares charged on South-East and South-South routes, following growing public concern as the festive season approaches.
In a statement issued by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said the move is aimed at determining whether airlines have violated provisions of the law in the way ticket prices are set on those routes.
According to the Commission, complaints have intensified in recent days over what many passengers perceive as coordinated manipulation or exploitation in airfare pricing by some airlines, particularly on routes serving the South-East and South-South regions.
The statement recalled that earlier in the year, a major domestic carrier, Air Peace, approached the court to stop the Commission from examining its pricing mechanisms. This followed the FCCPC’s initial probe into the airline’s pricing model after widespread complaints from the public.
The FCCPC clarified that the current inquiry is being carried out without prejudice to the ongoing court case instituted by Air Peace.
Further explaining the Commission’s position, FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said: “For the avoidance of doubt, we are not a price control board. But the FCCPA 2018 empowers us to check the exploitation of consumers.”
He added: “When we receive petitions or where we find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise.”
The Commission stressed that it would not hesitate to intervene where evidence shows that consumer welfare or market competitiveness is being undermined. It cited Section 17(b) of the FCCPA, which authorises the FCCPC to monitor economic activities and identify anti-competitive or anti-consumer practices, as well as Section 17(e), which empowers it to conduct investigations deemed necessary.
While reiterating that it does not regulate prices, the FCCPC noted that fair pricing remains a central objective of the Act. The law, it said, provides a framework to protect consumers from excessive, misleading, opaque or collusive pricing, while encouraging competitive markets where prices are set through fair market forces.
In light of what it described as arbitrary spikes in airfares, the Commission said it is widening its review to cover pricing patterns, the justification for fare increases reported by passengers, and any practices that could distort competition.
“Where evidence confirms a breach of the Act, FCCPC will apply appropriate enforcement measures,” the statement said, adding that updates on the aviation sector investigation would be communicated in due course.
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