The Federal Competition and Consumer Protection Commission (FCCPC) has clarified that there is no ongoing investigation into Air Peace, despite recent public concerns.
In a statement made on Tuesday in Abuja, Mrs. Boladale Adeyinka, the Director of Surveillance and Investigation at the FCCPC, explained that the invitation extended to the airline was simply for an inquiry, not an investigation.
“The invitation was to understand the airline’s pricing methodology and address consumer complaints,” Adeyinka said during a meeting with Air Peace Chairman, Dr. Allen Onyema, who attended with his team.
The statement comes after growing speculation and concerns from the public about the airline’s pricing policies. Adeyinka was quick to reassure that neither the airline nor its chairman was under investigation.
“We wanted to have more insight into your operations,” Adeyinka said. “This is not an investigation, it is an inquiry to better understand the pricing issues that consumers have raised.”
The FCCPC official also expressed her appreciation for Air Peace’s contribution to the aviation industry. “Thank you for bringing your expertise to the sector. Your efforts are benefiting Nigerian consumers and the aviation industry as a whole,” she added.
A Call for Transparency in Airline Pricing
Dr. Onyema, the Chairman of Air Peace, took the opportunity to clarify the challenges faced by Nigerian airlines, particularly in terms of pricing. He explained that while airline fares are set globally, the fares in Nigeria are far below the international standard, which makes it difficult for local airlines to remain sustainable.
“Globally, the cost of flying is between $250 to $300 per hour, but here in Nigeria, our fares do not reflect this due to the low purchasing power of Nigerians,” Dr. Onyema explained.
He further emphasized the harsh realities of running an airline in Nigeria, where the cost of operations is significantly higher compared to other countries. For instance, he noted that in many parts of the world, the operational cost of an airline is about 40 percent of the business, but in Nigeria, this figure can soar to as high as 70 percent.
“Air Peace’s prices are not even close to what they should be because of the financial pressures we face,” he said. “The cost of running an airline here is simply unsustainable.”
The Reality of High Operational Costs
Dr. Onyema cited several factors contributing to the high costs, including the soaring interest rates on loans, insurance fees, fuel costs, and various other charges that airlines must pay in dollars. He pointed out that while the aviation industry is essential for national development, these costs make it increasingly difficult for airlines to remain profitable while still offering affordable tickets.
“It costs about $4,000 per hour for an Airbus to land,” Dr. Onyema explained. “This is just one of the many costs we have to manage, and when we factor in all the additional charges, we end up with a fare that many Nigerians simply cannot afford.”
He stressed that the reality of Nigeria’s aviation industry is far from ideal, and for airlines to survive, pricing must be aligned with the actual costs of operation.
“The goal is safety, and that requires proper pricing,” he said. “Without fair pricing, the industry will not survive, and consumers will suffer.”
FCCPC’s Commitment to Consumer Welfare
The FCCPC has emphasized that its role is not only to address complaints but also to ensure that both consumers and businesses are treated fairly. According to Adeyinka, the Commission exists to foster stability and sustainability in Nigerian businesses, while also ensuring that consumers are protected.
“We are here for the good of the businesses, customers, and operators,” Adeyinka said. “We will continue to intervene where necessary to ensure that consumers have access to competitive and fair services.”
She also took the time to praise Dr. Onyema for his efforts to give back to the country, particularly his role in aiding stranded Nigerians during the COVID-19 pandemic.
“Your patriotism and service to this country are evident, and we encourage you to keep going,” she said.
A Positive Step for Nigerian Airlines
In a country where many airlines struggle to stay afloat due to rising costs and an unpredictable economic environment, the conversation between the FCCPC and Air Peace represents a positive step toward finding solutions that work for both consumers and airlines.
Despite the challenges, Dr. Onyema remains committed to ensuring Air Peace remains a reliable choice for Nigerian travelers. He noted that his continued involvement in the aviation sector is driven by a deep sense of patriotism and a desire to serve the Nigerian people.
“Our country needs a strong aviation industry, and I am willing to sacrifice to keep Air Peace flying,” Dr. Onyema said. “Safety and sustainability are our top priorities, and we will continue to work towards those goals.”
