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Airline ticket prices are deregulated – NCAA 

The Nigerian Civil Aviation Authority has reiterated that it does not control airline ticket prices, underscoring that airfares are a deregulated component of the global aviation industry.

In an interview, NCAA’s Director of Consumer Protection and Public Affairs, Michael Achimugu, stated, “The price of tickets is not regulated,” according to The Punch

He said the NCAA does not regulate the price of tickets for airlines. All over the world, it’s a deregulated component of aviation.

Achimugu stated that airlines submit fares yearly but must adhere to specific guidelines. He highlighted past issues, notably airlines’ reluctance to offer lower-priced tickets despite government assistance.

“However, in the past, as of the time we came in, the stock funds for the airlines, which the president graciously paid, all the airlines, their stock dollars. Now, as of the time, what they were refusing to do was to release the lowest inventory tickets. Of course, after the intervention of that committee, they have released those low inventory tickets,” he said.

Initiatives to tackle high airfare costs continue at national and regional levels.

Achimugu disclosed that Nigeria is advancing ECOWAS directives to lower airport operational charges, a key factor affecting ticket prices.

“The president has also asked that Nigeria implement the ECOWAS directive that the agencies in Nigeria should, across ECOWAS countries, reduce their charges,” he said.

He elaborated that high operational charges at airports contribute significantly to expensive airfares across the West African region. “Because when we reason for high airfares, it’s because landing in and departing from our airports is expensive. The charges are high. That’s why, if you notice in Africa, airfares are most expensive in the West African region,” Achimugu explained

additionally, he said “So ECOWAS is demanding of ECOWAS countries to cut down the charges at the airport, you know, so that it may also lead to lower airfares because the airline thing is a business. If you are going to pay a lot of taxes that will eat into your operating costs, then naturally it follows that you will want to charge a high airfare to cover that cost.”

Achimugu confirmed that Nigeria is taking steps to align with this regional directive. “So, ECOWAS has asked that African countries reduce those taxes, some of those taxes, and the president has also asked that Nigeria implement that directive,” he said.

Although agencies like the Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency handle specific responsibilities, Achimugu highlighted the NCAA’s continued role in overseeing and supporting these initiatives.

“So I think it’s in process because we also were asked recently to implement a certain number of things, but although that one is not within our own purview because we do not charge taxes at the airport, that’s FAAN and NAMA,” he noted.

He concluded by noting the joint agency efforts to address the issue.

 

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