PRICE FIXING: FCCPC has powers to sanction offending airlines – Aligbe

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By Dickson Omobola

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Chief Executive Officer of Belujane Konzult, Mr Chris Aligbe, weekend, faulted claims that the Federal Competition and Consumer Protection Commission, FCCPC, lacks adequate understanding of airline economics and should not be involved in aviation-related issues.

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Aligbe, who described 7FCCPC as an all-inclusive regulator with powers that cut across all sectors, said it has the legal backing and professional acumen to step in on issues relating to consumer protection and anti-competition.

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He also blamed airlines for not opening their ticket inventories two to three months ahead of last year’s festive season, saying it created an artificial surge.

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The aviation expert said this following series of comments that have trailed FCCPC’s decision to investigate and subsequently penalise five domestic airlines for what it described as arbitrarily hiking airfares during the Yuletide season.

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For instance, Spokesperson for Airline Operators of Nigeria, AON, Professor Obiora Okonkwo, had said while the commission has powers, it needs a proper understanding of aviation economics to address pricing issues.

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Also, an aviation expert, Gbenga Onitilo, had said: “The announcement that the federal government intends to sanction five domestic airlines over alleged Christmas price fixing is, frankly, laughable without a proper 360-degree understanding of airline economics. Aviation is not a roadside kiosk business; it is one of the most capital-intensive and volatile industries in the world.”

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Aligbe, while addressing newsmen in Lagos, said individuals who helped shape aviation regulations in Nigeria have at different times worked within the FCCPC.

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He said: “FCCPC is an omnibus regulator. It covers the entire economy, even in distributive trade. Do you remember when they closed Sahad stores in Abuja? That is an example. So, irrespective of sector-specific regulators such as the Nigerian Civil Aviation Authority, NCAA, National Broadcasting Commission, NBC, FCCPC has an overall destiny and can override if the chips are faced, if the thing comes to the fore.

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“FCCPC is also very well-structured to handle issues. It has a tribunal. When they sanction you and you refuse it, they drag you to their tribunal. But you can go to the court after that. Looking at aviation specifically, those people who say they don’t know anything are ignorant. Absolutely ignorant.

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I say so because the man who drafted Parts 18 and 19 of Nigerian Civil Aviation Regulations, Dr Babatunde Irukera, is the person who drafted the FCCPC Act. When he left there, the next person who succeeded him on an internal basis was Dr Adamu Abdullahi, who was Director of Consumer Protection in the NCAA. So, for people to say they know nothing about aviation, they are ignorant. When an organisation goes to the point of involving a forensic expert on an issue, it has gone beyond the normal.”

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On airlines filing fare increases with the NCAA, he said: “The airlines are supposed to file price increases to the NCAA, but I do not know whether they did. I am making this as a conditional statement. If they did, and the NCAA did not react to the increase, then the NCAA will have a question to answer.”

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On reasons passengers could not access cheaper fares during the Yuletide season, he said: “For you (passenger) to be able to get a very reasonable airfare, you book ahead. Many people wanted to book ahead three months, two months before the season, but the portal was closed. They (airlines) did not open the portal. So, they caused a situation where there was a surge in those who tried to access the portal. And once that happened, they said they now hike up the fare.”

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