Air Peace (P4, Lagos) and Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) are embroiled in a war of words after the airline was asked to respond to "widespread" consumer complaints alleging "exploitative ticket pricing" and significant price hikes on certain domestic routes. Air Peace asserts that its fares are driven by high operational costs, including rising fuel prices, insurance premiums, and other financial challenges.
The FCCPC's inquiry, which commenced on December 3, elicited what the consumer watchdog termed an "outburst" by the airline "in what seems like a series of ploys calculated to both obfuscate the issues and distract the commission from the ongoing inquiry into alleged exploitative ticket pricing". This, it noted, followed incorrect syndicated media reports that the airline was not under investigation and which "grossly misrepresented" proceedings at a meeting between the authority and Air Peace on December 3.
The commission alleged that Air Peace CEO Allan Onyema had threatened at the meeting to shut down the airline "ostensibly to show that he was doing the nation a favour by flying." It warned the carrier to stop obstructing its inquiry, which, it stated, was continuing. "Let it be noted that no amount of blackmail or cowboy tactics can stop the commission from the ongoing thorough investigation," it stated.
At a news conference in Lagos on December 6, Air Peace's chief operating officer, Oluwatoyin Olajide, criticised the FCCPC for bypassing the Nigerian Civil Aviation Authority (NCAA) and publicly making accusations against the airline, which she said was causing harm to the company’s reputation, according to news site Universal Reporters. Olajide disclosed that a foreign country had denied Air Peace airport slots due to the negative publicity, raising concerns about the government’s support for local businesses.
Olajide named factors that contributed to Air Peace's pricing, such as high operational costs including soaring fuel prices that accounted for 65% of its expenditure, insurance premiums, high interest rates on loans, unfavourable foreign exchange rates, expensive ACMI contracts, and infrastructural limitations at local airports that restrict operational hours.
She called the FCCPC's allegations of exploitative fares "unfair" and likened them to a "witch hunt", questioning the basis for the claims. She alleged the allegations harmed both Air Peace and Nigeria, which she said the airline was "making every effort to showcase on the global stage."
In related news, Michael Achimugu, the NCAA's director of public affairs and consumer protection, has warned that airlines failing to pay ticket refunds within the stipulated timeframe will face sanctions. In a statement on social media, he noted that NCAA regulations are clear that cash purchases must be refunded immediately, and in cash, while tickets purchased by electronic transfer, mobile apps, or internet banking must be refunded within 14 days. Achimugu was reacting to a consumer complaint about an outstanding refund from Air Peace.
