The Federal Government through one of its agencies, the Federal Competition and Consumer Protection Commission (FCCP), has directed Airline Operators in the country to immediately discontinue the implementation of airfare increase pending the outcome of its investigation.

The FCCP specifically said that the current and prevailing Nigerian Civil Aviation Regulations (Air Transport Economic Regulations) 18.15.2 (i) and (iii) expressly prohibits airlines from engaging in any contract, arrangement, understanding, conspiracy or combination in restraint of competition.

It stressed that this includes directly or indirectly fixing a charge, fee, rate, fare or tariff and any collusive action.

The Executive Vice Chairman of the FCCP, Mr Babatunde Irukera, who stated these in a statement on Wednesday, said the interim order was in line with Sections 17(a),(e),(l),(s),18(3)(a), 157 and 158 of the FCCP Act.

Irukera, stressing that the Commission’s investigations indicated that airline operators in supposedly association meetings discussed multiple industry-wide issues with particular reference to the challenges being experienced by their members.

The FCCP boss also said that credible information further indicated that attendees at the meeting did not arrive at a consensus, yet the meeting ended with a resolution that encouraged or consented to the coordinated conduct.

In the words of Irukera; “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 commission in addition to engaging the relevant stakeholders is entering and dispatching interim orders under Sections 17(a),(e),(l),(s),18(3)(a), 157 and 158 of the FCCPA.

”Prohibiting the performance or continuation of any agreement or arrangement associated with, or resulting from discussions, deliberations, debates, argument or resolutions of/at any meeting.

“Regarding any increase in airfares and or any conduct not necessarily directly in compliance, but in response to changes in the market on account of compliance by others,” he declared.

The FCCP Chief Executive therefore urged domestic airline operators to ensure strict and prompt compliance with the interim order pending the outcome of the Commission’s investigation.

Domestic airline operators jerked up airfares by over 100 percent with effect from March 1, through a resolution adopted by domestic airline operators that peg the least economy ticket at fifty thousand naira. The development drastically reduced the number of air travelers in the past one week.