Keyamo Mediates Dispute Between FCCPC and Air Peace Over Fare Allegations
The Minister of Aviation and Aerospace Development, Festus Keyamo, has stepped into the ongoing dispute between Air Peace and the Federal Competition and Consumer Protection Commission (FCCPC) over alleged exploitative airfare practices.
The conflict arose after FCCPC invited Air Peace for an inquiry based on petitions accusing the airline of inflating fares. In response, Air Peace refuted the allegations, describing them as unsubstantiated. Speaking at a press conference, the airline’s Chief Operating Officer, Oluwatoyin Olajide, defended the company’s pricing, attributing high ticket costs to soaring operational expenses.
Olajide cited aviation fuel as a major cost factor, revealing that a one-hour flight could consume N7 million worth of fuel. “Globally, ticket pricing is determined by operational costs, and based on these figures, a one-hour flight should cost between N500,000 and N700,000,” she explained.
On Sunday, FCCPC responded by warning Air Peace against obstructing its inquiry into the matter. Ondaje Ijagwu, FCCPC’s Director of Corporate Affairs, alleged that some petitions implicated Air Peace in influencing other airlines to increase fares. Additionally, the commission received complaints about flight cancellations and delays without adequate compensation for passengers.
Ijagwu referenced a recent incident on November 29 at the Nnamdi Azikiwe International Airport, where Air Peace passengers staged a protest after enduring a four-hour delay on an Abuja-Lagos flight. “No amount of blackmail or tactics can derail our ongoing investigation into these allegations,” he stated, pledging adherence to the FCCPA’s provisions.
In his intervention, Keyamo criticized FCCPC for publicly addressing the issue without consulting the Nigeria Civil Aviation Authority (NCAA), the primary regulator of the aviation sector. During a television interview, he emphasized the NCAA’s role in fare regulation and suggested the agency should have been the first point of contact.
“The FCCPC’s statement was premature and could have been avoided if they had liaised with the NCAA. We’ve been actively monitoring these airlines’ books, and we could have provided the needed clarity. Singling out airlines that are struggling to grow their capacity sends the wrong message,” Keyamo said.
The minister called for better inter-agency collaboration to address such disputes and protect the aviation industry’s integrity while ensuring fair practices for consumers.
