Solutions to fare profiteering by foreign airlines operating in Nigeria assumed a different dimension weeks after the International Air Transport Association ( IATA) brokered intervention over the vexing issues tabled by National Association of Nigeria Travel Agencies (NANTA) clearly became untenable.
Over the years, travel agents have continuously frowned at the recent resolve by foreign airlines to sell exploitative tickets to Nigerians because of their inability to repatriate their funds trapped in the country.
To address the lingering issue, Mrs Susan Akporiaye, President National Association of Nigeria Travel Agencies (NANTA) in company of some of her executives, recently stormed the Abuja headquarters of the Federal Competition and Consumer Protection Commission ( FCCPC) to seek guidance and the next line of action over foreign airlines’ exorbitant fares and closing of lower inventories to travel agents across the country.
Three weeks ago, at a briefing held in Lagos, NANTA had decried the high handedness of foreign airlines on the matter, which had caused an uproar among travellers and subsequently led to the closure of many travel trade companies and loss of jobs.
Addressing the FCCPC team led by its Executive Vice chairman and Chief Executive Officer, Babatunde Irukera, Mrs Akporiaye said the association was committed to protecting its members and their businesses from any form of exploitation and unfair practices from any quarter, hence the visit to the FCCPC for guidance and solutions driven advice on the face-off with foreign airlines over unfair airfare pricing in Nigeria.
She said, “We strongly view from our professional experience and knowledge of fare mechanism, that the reactions of foreign airlines on trapped funds is grossly unfair to the Nigerian travelling public and gravely threatens the survival of NANTA members”.
With her team, comprising Mr Chima Ihe, Second Deputy President, NANTA, Yinka Folami and Mrs Uloma Ibiwari Kemabonta, Vice Presidents, Lagos and Abuja zones of the association, Mrs Susan Akporiaye further requested the Federal Government Competition and Consumer Protection regulatory Commission to assist NANTA, and the Nigeria travelling public, with remedies to curb the unfair practices in the downstream aviation sector and how best to articulate its position going forward.
In his response, FCCPC Vice Chairman and Chief Executive Officer, Babatunde Irukera, commended the NANTA Leadership for the trust and confidence in government structured competition and consumer protection ecosystem, adding that the commission will study the issues, and engage necessary interventions which may include inviting parties and stakeholders involved.
“We at FCCPC welcome your request for guidance , and will do our best to help determine possible steps to solve this problem which affects Nigerians, but will first put up an investigation team to determine what led to this impasse and possibly infractions against the travelling public.”the FCCPC boss assured.
Earlier NANTA had raised the alarm over the alleged exploitation of Nigerians by foreign airlines, noting that the attitude of the carriers in refusing to open the lower ticket inventories amounts to taking advantage of the market they operate in.
Akporiaye at a world press conference held in Lagos recently stressed that it is only in Nigeria that a traveler is made to cough out over $2000 for an economy ticket and also change the date of the flight itinerary for whatever personal reasons with about N1.5 million and N1.8 million.
To put this in perspective, the NANTA boss explained that all low-fare inventories of the airlines had been deliberately blocked to their members and to the market, stressing that airlines, even after various engagements as partners, seem not to take such relationship or business history with NANTA into consideration, rather have gone ahead to make the market extremely difficult for members and in effect expensive for travelers.
According to her, this now means Nigeria is at a disadvantage since the airlines seem to have mastered the art of exploiting the forex issue to their advantage, hinting that travel agencies are now forced to fold, leave the country, or try to use other neighboring countries to sell to their customers.
Explaining further, she added that “Nigeria travel market continues to be at the losing end with the airlines being indifferent to the plight of travelers and as a body, we are left with no option than to call on the government to be more strategic, deliberate and direct in resolving this Multi-faceted dilemma.”
“Just to be clear, in the aviation downstream sector, businesses are currently folding up and more will follow suit, this will add to the unemployment challenge that the Federal government is wrestling with, if urgent and precise actions are not taken to nip this development in the bud before it is too late.”
The suffocating profiteering practices by the majority of the foreign airlines she narrated are unbelievable and unexplainable in a Nigerian market that she noted is ranked by many indices of the International Air Transport Association (IATA) as one of the best in Africa and with the best post-COVID recovery rates across Africa and the Middle East.
To her, the Nigerian market should be applauded but regretted that the reverse is the case.
Akporiaye slammed the carriers, saying, “The trade rules are obnoxious, not consistent with global best practices, and fares are unjustifiably high, all in reaction to trapped funds. We at this stage have reasons to believe there is more to it.”
Nigeria travel trade professionals she lamented are at crossroads with no help from the Federal Government either through the Central Bank of Nigeria (CBN) or the Ministry of Aviation to address these challenges and find solutions.
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
