The Federal Competition and Consumer Protection Commission (FCCPC) says it has commenced investigations, in collaboration with the Nigerian Civil Aviation Authority (NCAA), into the fare hike by members of the Airline Operators of Nigeria (AON).
The commission said its preliminary investigations showed the airlines colluded to increase airfares, contrary to Section 107 (1)(a) and Section 108 of the Federal Competition and Consumer Protection Act, 2018.
The AON had last week debunked what it described as rumours that its members colluded to fix N50,000 base fare for a one-way ticket for domestic travel in the country.
However, Babatunde Irukera, executive vice chairman/chief executive of FCCPC, in a statement on Wednesday, said the airlines were culpable as they did so in a coordinated manner.
Read also: Airlines deny increasing base fare to N50,000
He said, “Specifically, Section 107 (1)(a) forbids competitors from fixing prices, and Section 108 prohibits any conspiracy, combination, agreement or arrangement between competitors in any manner that unduly restrains or injures competition.
“The FCCPA, Civil Aviation Act and implementing regulations of both legislations respect the right and prerogative of airlines (as other businesses) to set their fares independently subject to, and in accordance with prevailing law and applicable processes. However, prevailing law expressly prohibits coordination, agreement or cooperation between competitors in setting fares.”
