…Debunks Authorising Airlines To Increase Fares
…Asks Airline Operators, Stakeholders To Disregard Insinuations, Reports
The Nigerian Civil Aviation Authority (NCAA) has said that all airlines’ tariffs for their services including fares, rates, add-on charges or terms and condition of service are fully liberalised contrary to claims in some quarters.
The regulatory body also informed that the Federal Government has not only liberalised the system but that it has also provided a level playing field for operators, calling airline operators and stakeholders to discountenance the reports, insinuations and continue to operate in the atmosphere of liberalisation.
The aviation regulatory authority made its position very clear in an online statement signed by the agency’s General Manager Public Relations, Mr Sam Adurogboye.
According to NCAA air fares and sundry charges have been statutorily deregulated and subjected to market forces.
Adurogboye however stated that all air carriers or its agent shall fulfill these conditions to increase air fares: file with the authority a tariff for that service showing all rates, fares and add-on charges, including the terms and conditions of free and reduced rate transportation for that service, as specified in IS.18.14.1.1 and obtain approval from the authority to introduce and or increase add-on charges or surcharges such as fuel, internet booking, insurance, security and similar surcharges, prior to implementation.
NCAA further buttressed its points by citing the Nigerian Civil Aviation Regulation (NCARs) 18.14.1.2,which states that all tariffs are required to be filed of 18.14.1.1 and shall be done at least seven days before the rates come into effect, except in the case of matching an existing rate for which no prior notification is required.
NCAA, he stated would approve the fares accordingly, adding that prior to the approval, all fares filed with the authority are subjected to Breakeven Analysis and this continues intermittently.
He said that the analysis is to curb anti-competitive pricing and to ensure that fares are not too low as to impact on safety arising from inability to carry out prerequisite maintenance on their aircraft.
However, NCAA pointed out that it would similarly intervene if the fares are too high to avoid overpricing that will deny the teeming passengers access to air transportation.
He stated that in 18.14.1.4 if however air carriers that offer a service fail to apply the fares, rates, charges or terms and conditions of carriage set out in the tariff that applies to that service, the authority may direct it the following actions.
The actions the regulatory body will take according to him includes: take the corrective measures it considers appropriate and pay compensation for any expense incurred by a person adversely affected by its failure to apply the fares, rates, charges or terms and conditions set out in the tariff.
