Increased holiday airfares are drawing criticism from travel agents who support the Federal Competition and Consumer Protection Commission (FCCPC) in its investigation of alleged exploitative pricing by airlines, particularly Air Peace.
With domestic fares rising by 57.81 per cent year-on-year, many families are opting out of holiday travel due to costs exceeding N300,000 for one-way tickets.
The National Association of Nigeria Travel Agencies (NANTA) has called for broader scrutiny of airline pricing practices, emphasising the need for equitable market policies.
NANTA said the airlines blocked travellers from purchasing lower fares tickets for yuletide traveling since September, 2024.
President of NANTA, Yinka Folami, in a statement by the titled, ‘The Present State of Service and Pricing in Nigeria’s Domestic Travel Operations Validates FCCPC’s Inquiry,’ said the inability of air travellers to purchase lower classes domestic tickets three months into Christmas and New year validates FCCPC’s suspicion of discriminatory pricing in the sector.
According to Folami, since September 2024, local airlines have displayed only high class tickets that are also arbitrary.
“What happens in our domestic routes pricing/publication is that you cannot purchase three months in advance. Since September 2024, it has been practically impossible to purchase December 2024 tickets on lower classes/fares.
“Initially, fares were not displayed in advance (contrary to global practice), and when they were displayed, all lower classes, particularly to a particular region in Nigeria, were frozen. All you can buy is just one class (highest price class). This, in our view, is arbitrary and validates the FCCPC’s suspicion of discriminatory pricing. It also runs in conflict with our professional teachings that airline pricing is predominantly determined by flown mileage.”
The group further pointed out that its understanding of FCCPC is that it is the leading authority for competition and consumer protection in Nigeria, and was established by the Federal Competition and Consumer Protection ACT 2018 (FCCPA), an Act of Parliament, to ensure fair market practices and safeguard consumers’ interest.
NANTA pointed out that under the FCCP Act of 2018, the body has a mandate to conduct surveillance and investigation.
NANTA posited that its knowledge, understanding and experience is that the Consumer Protection Commission is methodical in approach and has the capacity to consult for sector-expert opinion.
He added that similar consumer commissions or consumer boards have arbitrated successfully on sector-specific issues in other climes and Nigeria, like any other market, has the equal need to prioritise the Nigerian consumer and in this context, the Nigerian traveler.
“Our local airline players refer to the global pricing structure only when it is convenient. For example, our experience with global pricing is that you can purchase in advance.
“What happens in our domestic routes pricing/publication is that you cannot purchase three months in advance. Since September 2024, it has been practically impossible to purchase December 2024 tickets on lower classes/fares.
“Initially, fares were not displayed in advance (contrary to global practice), and when they were displayed, all lower classes, particularly to a particular region in Nigeria, were frozen. All you can buy is just one class (highest price class).
“This, in our view, is arbitrary and validates the FCCPC’s suspicion of discriminatory pricing. It also runs in conflict with our professional teachings that airline pricing is predominantly determined by flown mileage.
“We, at NANTA, are experienced enough to understand that aviation should not be presented to Nigeria as philanthropy. Aviation is the backbone of connectivity and must be driven by strong corporate governance, respect for consumer rights, and respect for government structures that are created by Act (by Law) to protect consumers.
”We therefore lend our support to the protection of consumer rights against anti-consumer services and discriminatory pricing; Extension of inquiry beyond just one airline; We support inquiry into the arbitrary pricing structure of airfares in our market (both domestic and international). There is an increasing imbalance between taxes and basic fares, particularly YQ taxes (fuel surcharge/emergency taxes), which need to be explicit in the interest of fairness to the Nigerian traveler and market. We offer our knowledge and expertise here
“Inquiry into significant delays, cancellations, and poor customer care to the Nigerian traveler and Inquiry into Cross-Border Trading, which is price discriminatory to our market, circumventing, and extractive to our national economy,” NANTA said.
Aviation, the association said, is a serious business, with high requirements for consumer-centrism and that as result, “we should stop being skeptical and cynical about consumer rights and about the responsibilities of the FCCPC.
NANTA advised stakeholders to work collaboratively to respect and strengthen this laudable government commission and that
NANTA stands ready for this patriotic task.
“In conclusion, we firmly lend our support and expertise where needed to price and service inquiry in the sector which, in our opinion, is long overdue. And if collaboratively prosecuted, it is a win for the Nigerian traveler and a win for all,” NANTA said.
