Minister of Aviation and Aerospace Development, Festus Keyamo, has described the Federal Competition and Consumer Protection Commission’s (FCCPC) allegations against Air Peace airline as “very careless.”
Speaking on This Morning show on Arise News, monitored by Investors King on Sunday, Keyamo criticized the FCCPC for not consulting the Nigeria Civil Aviation Authority (NCAA) before making public statements that could damage the business and reputation of the airline.
Investors King recalls that the FCCPC recently announced plans to investigate Air Peace over alleged exploitative airfares.
Keyamo stated, “I think it was a very careless statement — I say that with all apologies — by the agency, without even consulting the core agency involved in regulation, which is the NCAA.
“The powers to regulate and inform airlines about price increases and other matters are domiciled with the NCAA, which is the core agency. We cannot have an agency of government floating all over the place, assuming all powers. If there’s an issue with yam pricing, does that mean they will call the agricultural minister? I don’t think their powers stretch that far, but I say this respectfully because I’m also a minister of government.
“They should have contacted the NCAA to examine the figures and books, which we have been doing. We would have provided them with accurate information. But to single out a few airlines while we are working to elevate their global standing and enhance their capacity was a bit careless.”
Keyamo further explained that the challenges faced by Nigerian airlines go beyond aircraft maintenance and extend to leasing agreements, which are significantly affected by the fluctuating foreign exchange rate.
He elaborated, “Nigeria’s situation is even more precarious because it is not just about maintaining aircraft but also about renting them under ACMI (Aircraft, Crew, Maintenance, and Insurance) contracts.
“An ACMI contract, also known as wet or damp leasing, is an agreement where the lessor provides an aircraft, crew, maintenance, and insurance to the lessee in return for payment based on the number of block hours operated.
“When you lease these aircraft, the payment—covering the aircraft, crew, insurance, and everything—is made in foreign exchange. With the fluctuating nature of the Naira against the dollar, this directly affects the cost of operations.
“What we are working on is exposing Nigerian airlines to global markets, where they can access aircraft on favorable terms. This will help reduce ticket prices and operational costs,” he concluded.