Air Peace management has criticized the Federal Competition and Consumer Protection Commission (FCCPC) for actions perceived as uncomplimentary towards the airline’s brand. The airline specifically questioned the parameters used to conclude that it was charging exploitative fares, given the significant operating costs it incurs.
Addressing the media, Mrs. Toyin Olajide, Chief Operating Officer, expressed her displeasure over the FCCPC’s handling of the inquiry. She highlighted that the agency bypassed the Nigerian Civil Aviation Authority (NCAA), the regulatory body overseeing aviation matters. “They never consulted with the NCAA,” she emphasized, underscoring what she described as a breach of protocol.
Olajide further explained that Air Peace Chairman, Dr. Allen Onyema, had personally responded to the inquiry at the FCCPC’s office. However, she expressed shock as the FCCPC alleged an investigation against Air Peace. She said, “We received this letter, and a day later, it appeared in the press that FCCPC was investigating Air Peace. Though the initial communication described it as an inquiry.” Read Also: Keyamo Orders Joint Inspection Table Dismantled, Launches MMIA, GAT Reforms
The COO renounced charging exploitative fares emphasising that aviation operates as a highly regulated industry. She noted that any external agency requiring information should engage the NCAA to ensure proper channels are maintained. Despite the lapse, Olajide said the airline provided detailed explanations of its fare structure and operational costs to justify its pricing system.
Operating a one-hour flight costs Air Peace approximately NGN20 million, Olajide revealed. To clarify, she broke down the expenses, highlighting that fuel alone constitutes 60-65% of operational costs. At NGN1,400 per liter, fuel costs for a single hour amount to NGN7 million. Furthermore, Aircraft Crew Maintenance and Insurance (ACMI) costs of $4,000 per hour translate to nearly NGN7 million more. Additionally, insurance, burdened by Nigeria’s risk stigma, introduces an extra NGN5 million per flight.
Moreover, Olajide drew attention to financing costs, which stand at an exorbitant 30% interest rate compared to just 2% for airlines in the United States or United Kingdom. Consequently, this disparity places a significant financial strain on Nigerian airlines. “We are flying the same aircraft, yet we bear these disproportionate financial burdens,” she remarked, underscoring the challenges faced by the industry.
Air Peace also lamented the negative impact of the FCCPC’s optics on its international standing. According to Olajide, the airline recently lost a valuable slot in another country due to the current controversy. Furthermore, she stated, “A country we’ve been applying to for a slot wrote back yesterday, saying we’re not their priority because of how our own country treats us.”
However, she emphasized that the FCCPC’s actions do not reflect a lack of government support for Nigerian airlines.
On the contrary, Olajide emphasized that Air Peace enjoys significant backing from the Federal Government. “I want to stress that we have the support of the Federal Government of Nigeria for Air Peace. This is in no doubt at all. We are fully aware of the support of our dear President, President Bola Ahmed Tinubu for Air Peace. This is something that we deeply appreciate and do not take for granted,” she concluded.
She called for greater national support, emphasizing the airline’s efforts to put Nigeria on the global map. “We just need a little support,” she said. “Don’t destroy our efforts.”
