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FCCPC launches probe into domestic airline ticket pricing

The Federal Competition and Consumer Protection Commission has initiated an expanded inquiry into the pricing structures utilized by certain airlines, which have resulted in elevated ticket prices on specific domestic routes.

The main aim of this inquiry is to determine potential violations of the law’s provisions.

This information was disclosed in a statement released on Friday in Abuja by Mr. Ondaje Ijagwu, the Director of Corporate Affairs for the Commission.

Mr. Ijagwu pointed out that significant concerns have recently emerged regarding what seems to be “coordinated manipulation or exploitation in the pricing of airline tickets by some airlines on certain routes.”

The routes where these issues have been raised notably include those in the South-East and South-South regions, coinciding with the onset of the festive period.

According to Mr. Ijagwu, the ongoing investigation is particularly focused on operators serving these identified routes, and the Commission plans to undertake suitable enforcement actions if evidence suggests any infringement of the Federal Competition and Consumer Protection Act.

Mr. Ijagwu further mentioned that the airline Air Peace had previously “filed a court case seeking to prevent the Commission from examining its pricing practices,” following the initiation of an inquiry into its pricing model due to widespread public complaints. He emphasized that the FCCPC’s current investigation is advancing “without prejudice to the case brought against the Commission by Air Peace.”

Mr. Tunji Bello, the Executive Vice Chairman of the FCCPC, was quoted by the director, reiterating the Commission’s commitment. Mr. Bello stated that “the Commission would act decisively where evidence indicated that consumer welfare or market competitiveness were being compromised.”

He clarified the FCCPC’s function by stating: “For clarity, we are not a price control body, but the FCCPAct 2018 grants us authority to prevent the exploitation of consumers.”

Mr. Bello highlighted the proactive approach of the agency, asserting: “When we receive complaints or discover substantial evidence, we will not remain passive while Nigerian consumers face exploitation in any form.” He related the new, broader assessment to the issue of soaring costs, remarking: “In light of the arbitrary increase in airfares, the Commission is broadening its review of pricing trends, the reasons for the increases reported by consumers, and any practices that could undermine fair competition.”

He concluded his remarks by assuring that “If evidence validates a violation of the Act, the FCCPC will enact appropriate enforcement actions.” Mr. Bello also indicated that the Commission would continue to provide updates regarding the ongoing investigations within the aviation sector.

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