…Says Display Of Only High Class Fares Arbitrary, Validates FCCPC’s Suspicion Of Discriminatory Pricing
The National Association of Nigeria Travel Agencies(NANTA) has said that the inability air travellers to purchase lower classes/ fares tickets three months in advance since September, 2024 and that the display of only high class tickets iare not only arbitrary but also validates the Federal Competition and Consumer Protection Commission’s(FCCPC’s) suspicion of discriminatory pricing.
NANTA made its position known in a statement signed by the President of the association, Mr Yinka Afolami, titled, “The Present State of Service and Pricing in Nigeria’s Domestic Travel Operations Validates FCCPC’s Inquiry” and made available to Ontimenewsng.com today in Lagos.
According to NANTA, “What happens in our domestic routes pricing/publication is that you cannot purchase three months in advance. Since September 2024, it has been practically impossible to purchase December 2024 tickets on lower classes/fares. Initially, fares were not displayed in advance (contrary to global practice), and when they were displayed, all lower classes, particularly to a particular region in Nigeria, were frozen. All you can buy is just one class (highest price class). This, in our view, is arbitrary and validates the FCCPC’s suspicion of discriminatory pricing. It also runs in conflict with our professional teachings that airline pricing is predominantly determined by flown mileage.”
The group pointed out that its understanding of
FCCPC is that it is
the leading authority for competition and consumer protection in Nigeria, and was established by the Federal Competition and Consumer Protection ACT 2018 (FCCPA), an Act of Parliarment, to ensure fair market practices and safeguard consumers’ interest.
NANTA pointed out that under the FCCP Act of 2018, the body has a mandate to conduct surveillance and investigation.
NANTA posited that its knowledge, understanding and experience is that the Consumer Protection Commission is methodical in approach and has the capacity to consult for sector-expert opinion, adding that similar consumer commissions or consumer boards have arbitrated successfully on sector-specific issues in other climes and Nigeria, like any other market, has the equal need to prioritise the Nigerian consumer and in this context, the Nigerian traveler.
On its position on the present Federal Government*OUR inquiry into domestic air fares, NANTA said, “Our local airline players refer to global pricing structure only when it is convenient. For example, our experience with global pricing is that you can purchase in advance.
“What happens in our domestic routes pricing/publication is that you cannot purchase three months in advance. Since September 2024, it has been practically impossible to purchase December 2024 tickets on lower classes/fares. Initially, fares were not displayed in advance (contrary to global practice), and when they were displayed, all lower classes, particularly to a particular region in Nigeria, were frozen. All you can buy is just one class (highest price class). This, in our view, is arbitrary and validates the FCCPC’s suspicion of discriminatory pricing. It also runs in conflict with our professional teachings that airline pricing is predominantly determined by flown mileage.
“We, at NANTA, are experienced enough to understand that aviation should not be presented to Nigeria as philanthropy. Aviation is the backbone of connectivity and must be driven by strong corporate governance, respect for consumer rights, and respect for government structures that are created by Act (by Law) to protect consumers.
” We therefore lend our support to the following:
1) Protection of consumer rights against anti-consumer services and discriminatory pricing
2) Extension of inquiry beyond just one airline
3) We support inquiry into the arbitrary pricing structure of airfares in our market (both domestic and international). There is an increasing imbalance between taxes and basic fares, particularly YQ taxes (fuel surcharge/emergency taxes), which need to be explicit in the interest of fairness to the Nigerian traveler and market. We offer our knowledge and expertise here
4) Inquiry into significant delays, cancellations, and poor customer care to the Nigerian traveler
5) Inquiry into Cross-Border Trading, which is price discriminatory to our market, circumventing, and extractive to our national economy,” NANTA said.
Aviation, the association said is a serious business, with high requirements for consumer-centrism and that as result, “we should stop being skeptical and cynical about consumer rights and about the responsibilities of the FCCPC.
NANTA advised stakeholders to work collaboratively to respect and strengthen this laudable government commission and that
NANTA stand ready for this patriotic task.
“In conclusion, we firmly lend our support and expertise where needed to price and service inquiry in the sector which, in our opinion, is long overdue. And if collaboratively prosecuted, it is a win for the Nigerian traveler and a win for all,” NANTA said.
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