FG Orders Airline Operators To Suspend Airfare Hike

The Federal Competition and Consumer Protection Commission has ordered airline operators to stop the present implementation of airfare increase with immediate effect, pending the outcome of its investigation.

The Executive Vice Chairman of the Federal Government’s agency, Mr Babatunde Irukera, mentioned this in a statement on Wednesday in Abuja.

Irukera stated that the interim order was in line with Sections 17(a),(e),(l),(s),18(3)(a), 157 and 158 of the FCCPAct.

He added that the commission’s investigations showed that airline operators in supposedly association meetings talked about several industry-wide issues; majorly challenges their members are facing.

He further said that credible information revealed that while attendees at the meeting did not arrive at a consensus, the meeting ended in a resolution that encouraged or consented to the coordinated conduct.

According to him, the FCCPA is against conduct or any coordination between competitors including on the platform of trade associations.

”Specifically, Section 107 (1)(a) forbids competitors from fixing prices, while Section 108 prohibits any conspiracy, combination, agreement or arrangement between competitors in any manner that unduly restrains or injures competition.

“Coordination in increasing prices otherwise known as cartel is an unambiguous infringement of the FCCPA.

”The current and prevailing Nigerian Civil Aviation Regulations (Air Transport Economic Regulations) in Regulation 18.15.2 (i) and (iii) expressly prohibits airlines from engaging in any contract, arrangement, understanding, conspiracy or combination in restraint of competition.

“This includes directly or indirectly fixing a charge, fee, rate, fare or tariff and any collusive action.

”The commission in addition to engaging the relevant stakeholders is entering and dispatching interim orders under Sections 17(a),(e),(l),(s),18(3)(a), 157 and 158 of the FCCPA.

”Prohibiting the performance or continuation of any agreement or arrangement associated with, or resulting from discussions, deliberations, debates, argument or resolutions of/at any meeting.

”Regarding any increase in airfares and or any conduct not necessarily directly in compliance, but in response to changes in the market on account of compliance by others,” he added.

Irukera urged scheduled domestic airline operators to ensure strict and prompt compliance with the interim order pending the result of the commission’s investigation.