Festus Keyamo Criticizes FCCPC’s Inquiry Into Air Peace Ticket Pricing

Festus Keyamo expresses strong disapproval of the FCCPC’s investigation into Air Peace ticket pricing, raising questions about regulatory oversight and market practices in Nigeria’s aviation sector.

Festus Keyamo, the Minister of Aviation and Aerospace Development, has expressed disapproval towards the Federal Competition and Consumer Protection Commission (FCCPC) for openly challenging Air Peace’s pricing strategies without initially consulting with the Nigeria Civil Aviation Authority (NCAA).

In an interview on Arise News TV’s The Morning Show this past Sunday, Keyamo discussed the FCCPC’s current investigation into claims of excessive airfare imposed by the airline.

He stressed that the NCAA holds regulatory authority over airline pricing, not the FCCPC, and should have been consulted before any public statements were made.

Keyamo remarked, “I believe it was a highly careless statement— and I apologize for saying so — made by the agency without consulting the principal regulatory body involved, which is the NCAA.”

“They should have reached out to the NCAA for a review of the books, as we have been doing; that way, we could provide them with factual information,” he added.

Keyamo also highlighted the challenges confronting Nigerian airlines, such as Air Peace. He attributed these issues to constraints in operational capacity rather than price manipulation. The difficulties encompass acquiring and maintaining aircraft, along with fluctuating foreign exchange rates that substantially affect operational costs.

He also mentioned that numerous airlines in the country depend on wet-leased aircraft, leading to significant extra costs.

Remember that the FCCPC recently declared investigations into Air Peace, GTBank, and MTN following consumer complaints. This includes allegations of exploitative pricing by the airline.

Oluwatoyin Olajide, the Chief Operating Officer of Air Peace, justified the airline’s pricing strategy by pointing to increasing operational expenses. Olajide mentioned that a one-hour flight alone could incur costs up to N7 million for fuel and $4,000 for aircraft leasing.