Nigerian flag carrier, Air Peace, Friday, faulted the decision of the Federal Competition and Consumer Protection Commission, FCCPC, to launch an inquisition into its pricing, and described the move as needless.
The airline’s Chief Operating Officer, Toyin Olajide, insisted that there was nothing exploitative about Air Peace’s airfares, disclosing that the situation had been reported to the presidency.
Last Sunday, reports emerged that FCCPC had launched an inquiry into widespread consumer complaints against Air Peace to address issues of poor service delivery, exploitative practices and potential consumer rights violations.
After a meeting FCCPC had with Air Peace in Abuja, another report emerged that the agency was indeed investigating Air Peace, and categorically denied reports claiming otherwise.
But while addressing newsmen in Lagos, Olajide said the airfares Nigerian airlines charged were not commensurate with the cost of operations, wondering what parameters were used to arrive at the decision.
Her words: “We are fully aware of the enquiry by the FCCPC about exploitative fares. A lot of people might not know the implications of just that alone. You are talking about investigating the biggest airline in your country that has bent backwards 360 degrees for this country, that is representing this country out there, that is putting this country on the global map, making Nigeria proud.
“Before you say that an airline is exploiting someone, how much information do you have about airline operation? What exactly defines the ticket cost? How do you even come about the cost of a ticket? It is the operating cost of that flight.
“What are the factors that define operating costs? You start talking about fuel, which we all know contributes almost 60 to 65 per cent of your operating costs. Today in Nigeria, we are buying one litre of fuel at almost N1400, I mean, N1,400 per litre. If I have to operate a one-hour flight from here to Abuja, from here to Oweri or Port Harcourt, I will need about 4,000 litres of fuel.
“That will cost almost N7 million. There is also the cost of funding, because we know that aviation is a high capital industry. This is a very sensitive sector. This is a sector that I tell people, you carry human blood on your shoulders.
“You cannot afford to take anything for granted. You cannot manage nothing because there is no bus stop in the air. It simply means you have got to do everything humanly possible, follow the regulations, the safety requirements, the protocols, every single requirement for a safe flight.
Why we invited Air Peace – FCCPC
“They keep saying airlines are dying. Why would they not die? It is really unfair that Air Peace is being accused of exploitative fares. What parameters were being used to arrive at this word, exploitative?”