Air Peace reports alleged exploitative fares probe to presidency
Air Peace has escalated its concerns to Nigeria’s Presidency following allegations of exploitative ticket pricing raised by the Federal Competition and Consumer Protection Commission (FCCPC).
The airline’s Chief Operating Officer, Mrs. Oluwatoyin Olajide, expressed disappointment over the FCCPC’s actions, claiming they have caused reputational damage and adversely impacted the airline’s international operations.
During a press conference in Lagos, Olajide detailed the financial and operational challenges faced by Nigerian airlines, asserting that ticket prices reflect the high costs of doing business in Nigeria’s aviation industry.
She pointed at factors such as exorbitant fuel prices, costly aircraft leases, and insurance rates significantly higher than global averages. According to her, operating a one-hour flight costs the airline over ₦14 million, with fuel alone consuming ₦7 million and aircraft lease and insurance costs adding further financial burdens.
Olajide explained that airlines in developed countries benefit from lower borrowing rates and stable currency exchange rates, whereas Nigerian airlines face a 30% interest rate on loans and must source dollars for essential expenses.
She added that despite these challenges, Air Peace charges between ₦95,000 and ₦150,000 per ticket, which Olajide argued is far below what would be necessary for profitability.
She also alleged that the FCCPC’s accusations have damaged Air Peace’s international standing, citing the loss of a summer slot in a foreign country.
“We cannot allow this same airline that has rescued us to be pulled down. Today, we have other African carriers that come to Nigeria and are charging very high fares to those destinations Air Peace does not fly to. Other countries are begging us to come to their country because they know that if we start operating to their country, the fare in that destination will crash. What we are charging today is still below what our counterparts overseas with better conditions are charging,” Olajide said.
