Keyamo shields local airlines against what observers call unhealthy attacks. The aim is to protect and project their image into the competitive, international airspace, instead.
The Minister of Aviation and Aerospace Development, Festus Keyamo, has defended local airlines from harsh criticisms. This comes amid a growing dispute between the FCCPC and Air Peace. Keyamo strongly disagreed with the Federal Competition and Consumer Protection Commission (FCCPC)’s recent attack on Air Peace over airfare hike.
The minister argued that the FCCPC’s statements were unfair and detrimental to the airline’s international reputation. Keyamo said, “I think it was a very careless statement made without consulting the core regulatory agency, NCAA.”
The minister further stated that the NCAA, not the FCCPC, holds the power to regulate airline prices. “The power to regulate these airlines and their prices is domiciled with NCAA. They are the core agency,” Keyamo clarified. He added that the real issues in Nigerian aviation stem from the lack of capacity and fluctuating foreign exchange rates.
Why Keyamo shields local airline against FCCPC’s inquiry
The FCCPC launched an inquiry into Air Peace’s alleged pricing practices after receiving consumer complaints. Passengers accused the airline of inciting others to raise ticket fares, leading to a hike in domestic flight prices. Some petitioners also accused Air Peace of arbitrarily cancelling flights without offering compensation.
In response, the airline has dismissed these accusations as baseless. Air Peace’s Chief Operating Officer argued that Nigerian airlines’ fares were not reflective of operational costs.
The airline claimed that the government had not addressed the real challenges affecting pricing, such as high fuel costs and foreign exchange volatility. “Air Peace is being targeted, and the real issues are being ignored,” the COO stated.
In defense of local carriers, Keyamo Nigerian airlines face significant operational hurdles. “What we are facing is a capacity problem,” he explained. He noted that airlines struggle to acquire aircraft and expand their fleets. Additionally, fluctuating exchange rates have made it increasingly difficult for local airlines to maintain affordable ticket prices.
The aviation minister emphasized that the FCCPC should have consulted with the NCAA before making such public statements. “The NCAA is the only body that should be addressing pricing issues. They regulate the airlines,” Keyamo insisted.
FCCPC responds
Meanwhile, the FCCPC has strongly rebutted Air Peace’s claims. The commission stated that it would continue its investigation into the airline’s pricing practices. “No amount of blackmail or cowboy tactics will stop the commission from investigating these allegations,” said Ondaje Ijagwu, Director of Corporate Affairs at FCCPC.
The FCCPC highlighted several consumer complaints against Air Peace. Some passengers reported arbitrary flight cancellations and were forced to pay hefty surcharges for rebooking. The commission has emphasized that its inquiry aims to ensure fair pricing in the aviation sector, as outlined in the Federal Competition and Consumer Protection Act.
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