The Minister of Aviation and Aerospace Development, Festus Keyamo, criticized the Federal Competition and Consumer Protection Commission for publicly questioning Air Peace’s pricing practices.
He argued that the FCCPC should have consulted with the Nigeria Civil Aviation Authority before making any public statements about the airline’s pricing.
Keyamo made this statement during an interview on The Morning Show on Arise News TV on Sunday, when he was asked about the FCCPC’s investigation into Air Peace’s allegedly exorbitant airfare.
He stressed that the responsibility for regulating airline pricing lies with the NCAA, not the FCCPC, and that the commission should have consulted the authority for clarification before making its statement.
“I think it was a very careless statement – I say that with all apology – by the agency, making such a statement without consulting the core agency involved in regulation, which is the NCAA,” the Aviation Minister said.
“They should have contacted the NCAA for them to look at the books, which we have been doing, so we would have given them facts,” he added.
Keyamo clarified that the issues facing Nigerian airlines, including Air Peace, are not due to price gouging but stem from severe capacity limitations.
These include challenges in acquiring and maintaining aircraft, as well as the impact of fluctuating foreign exchange rates on operational costs.
He also noted that many Nigerian airlines depend on wet leasing aircraft, which increases their expenses.
It was earlier reported that the Federal Competition and Consumer Protection Commission launched an investigation into Air Peace, GTBank, and MTN over consumer complaints, particularly focusing on allegations of exploitative pricing by Air Peace.
The airline’s Chief Operating Officer, Oluwatoyin Olajide, clarified that the rising operational costs, including N7 million for fuel and $4,000 for aircraft leasing per one-hour flight, justified the higher fares.
