The Federal Competition and Consumer Protection Commission (FCCPC) has ordered airline operators to immediately discontinue the current implementation of airfare increase pending the outcome of the its investigation.
The Executive Vice Chairman of FCCPC, Mr Babatunde Irukera, said this in a statement on Wednesday in Abuja.
Irukera said the interim order was in line with Sections 17(a), (e), (l), (s), 18(3)(a), 157 and 158 of the FCCPAct.
He said the Commission’s investigations revealed that airline operators in a supposedly association meetings discussed multiple industry-wide issues; particularly challenges experienced by their members.
He said that credible information revealed that while attendees at the meeting did not arrive at a consensus, the meeting ended in a resolution that encouraged or consented to the coordinated conduct.
According to him, the FCCPA prohibits conduct or any coordination between competitors including on the platform of trade associations.
“Specifically, Section 107 (1)(a) forbids competitors from fixing prices, while Section 108 prohibits any conspiracy, combination, agreement or arrangement between competitors in any manner that unduly restrains or injures competition. “Coordination in increasing prices otherwise known as cartel is an unambiguous infringement of the FCCPA. The current and prevailing Nigerian Civil Aviation Regulations (Air Transport Economic Regulations) in Regulation 18.15.2 (i) and (iii) expressly prohibits airlines from engaging in any contract, arrangement, understanding, conspiracy or combination in restraint of competition.”
