………Mulls sanction
The Federal Competition and Consumer Protection Commission (FCCPC) has initiated investigations into the recent hike in air fares by local carriers.
Though the umbrella body of indigenous carriers – Airline Operators of Nigeria (AON) has denied that they met to fix fares, the FCCPC said its investigations offer credible evidence that airlines did so.
Executive Vice Chairman/Chief Executive FCCPC, Mr. Babatunde Irukera in a press release entitled, “Coordinated increase in airfares by certain scheduled domestic airline operators said the FCCPA prohibits any coordination between competitors on the platform of trade associations.
According to Irukera:” Specifically, Section 107 (1) forbids competitors from fixing prices.”
He said :” Section 108 prohibits any conspiracy, combination, agreement or arrangement between competitors in any manner that unduly restrains or injures competition”.
He further stated that coordination in increasing prices otherwise known as a cartel is an unambiguous infringement of the FCCPA, stressing that the current and prevailing Nigerian Civil Aviation Regulations , Air Transport Economic Regulations, expressly prohibits airlines from engaging in any contract, arrangement, understanding, conspiracy or combination in restraint of competition which includes directly or indirectly fixing a charge, fee, rate, fare or tariff and any collusive action.
According to him, “The FCCPA, Civil Aviation Act and implementing regulations of both legislations respect the right and prerogative of airlines to set their fares independently subject to, and in accordance with prevailing law and applicable processes.
” However, prevailing law expressly prohibits coordination, agreement or cooperation between competitors in setting fares”.
He noted that as such, the Commission with the collaboration of the Nigerian Civil Aviation Authority (NCAA) has commenced an investigation with respect to this subject.
He further stated that although the investigation is at early stages, there is sufficient probable cause to proceed and also provide interim measures to restore a free and undistorted domestic aviation market.
The commission’s boss explained that the FCCPC became aware of plans to hike fares after a series of meetings over a period of three weeks including on Thursday, February 17, 2022, and Saturday, February 19, 2022, in association meetings.
Some subjects of discussions, he stated included foreign exchange, cost of ground handling services, the rising cost of jet fuel and airfares.
Some Nigerian airlines.
Copyright TRUSTAFRICA NEWS.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TRUSTAFRICA NEWS.
Contact: [email protected]
