FG Threatens Sanctions As Foreign Airlines Stick To High Fares

FG Threatens Sanctions As Foreign Airlines Stick To High Fares

The Federal Government has threatened to sanction foreign airlines that fail to comply with the directive to release low inventory tickets within weeks.

The Nigerian Civil Aviation Authority had met with airline operators, the NCAA, foreign airlines, and the National Association of Nigeria Travel Agencies in Abuja last week where the directive was handed down.

During the meeting, the foreign airlines pledged to enhance transparency in air ticketing processes by releasing low inventory tickets, making them significantly more affordable for the Nigerian middle class.

This followed the release by the Federal Government of part of the $700m trapped air ticket funds to foreign airlines.

However, findings by Sunday PUNCH showed that not all the foreign airlines had complied with the directive.

The Director of Public Affairs and Consumer Protection, NCAA, Michael Achimugu, said in an exclusive with Sunday PUNCH that defaulting airlines risked sanctions.

The NCAA public affairs director stated in an interview with one of our correspondents on Saturday, “The meeting between the NCAA and the foreign airlines had NANTA present.

However, findings by Sunday PUNCH showed that not all the foreign airlines had complied with the directive.

The Director of Public Affairs and Consumer Protection, NCAA, Michael Achimugu, said in an exclusive with Sunday PUNCH that defaulting airlines risked sanctions.

The NCAA public affairs director stated in an interview with one of our correspondents on Saturday, “The meeting between the NCAA and the foreign airlines had NANTA present.

They confirmed the opening of those low inventory tickets. During our discussions with the airlines, we allowed them into the meeting one after the other and some claimed that in their agencies, low inventories were opened.

“We had NANTA confirm this in the meeting and discovered that some of the airlines were not being truthful about it. Consequently, we instructed them to open those low-inventory tickets.

“A majority of them are reported to have complied by opening low-inventory tickets. For those that are yet to do so, we have given them a week or thereabout. I will need to check with the chairman to confirm the exact number of weeks given to them to comply.

“Within the scope of the NCAA, there will be sanctions applicable to airlines that do not comply with these directives. We made that very clear. However, I need to confirm the deadline to comply with the committee.”

Investigations by Sunday PUNCH showed that airlines had initiated the release of low-inventory tickets, however, there are concerns as certain carriers have yet to offer their lowest inventory tickets.

Airline operators, who spoke to Sunday PUNCH, confirmed that the NCAA directive had not fully expanded the availability of economy-class tickets.

A reliable source in the industry told our correspondent that some of the airline operators were yet to fully open up the lowest inventory tickets, which cater significantly to the Nigerian middle class.

The source claimed that some of the operators withheld the lowest inventory tickets in a move to compel Nigerians to utilise their dollar cards to purchase air tickets.

“Some airlines did a partial opening, meaning that they didn’t release all of the low-inventory tickets. For example, if they have 10 economy class tickets with different fares, they will release around five,” the source revealed.

The Director-General of the NCAA, Chris Najomo, had called out Air France for non-compliance with the directive.

In response to this, Najomo set up a 10-member committee chaired by the Director of Special Duties at the NCAA, Horatius Egua.

The committee’s primary task is to oversee the full compliance by foreign airlines with the government directive regarding the unblocking of low-inventory tickets.

The committee is expected to propose suitable pricing strategies for tickets in Nigeria compared to other markets in the West African sub-region.

The President of the Association of Foreign Airlines and Representatives in Nigeria, Kingsley Nwokoma, confirmed to Sunday PUNCH that some airlines had chosen to open their low-inventory tickets, while others were yet to follow suit.

The AFARN president believes this move will benefit everyone, as airline operators navigate market dynamics and competition by strategising accordingly

Nwokoma stated that making decisions for airlines was challenging due to numerous variables that needed consideration.

According to him, the decisions by the airlines to open up inventory involve evaluating both commercial and technical aspects to determine the most suitable course of action.

The AFARN president explained that the increase in ticket prices was attributed to the high exchange rate and the challenge of accessing trapped funds.

He added that airlines were keen to recover these funds.

Nwokoma emphasized the ongoing conversations between the foreign airlines and the NCAA, shedding light on the complexities involved.

“The foreign airlines are having a conversation with the NCAA. So I’m sure as soon as that is sorted, they will look at all the dynamics,” he said.

Nwokoma added that it was important to resolve regulatory matters before proceeding with ticket releases, underscoring the need for alignment between industry stakeholders and regulatory bodies.

Regarding the timeline for the release of low-inventory tickets, he expressed uncertainty, noting, “It is ongoing; we can’t give any timeframe as to when the release of low-inventory tickets will start.”

Price checks by our correspondents revealed significant discrepancies in ticket prices. While some tickets are sold at over N1m, others exceed N3m.

A round-trip economy class ticket from Lagos to London with Air France costs N2,482,138, while for Lufthansa, it is priced at N1,966,165. Qatar Airways offers the same ticket for N2,016,824, and KLM prices it at N2,448,740.

For the Lagos to New York route on Qatar Airways, the cost is N2,982,049. Meanwhile, KLM charges N3,158,314; Air France prices it at N3,148,308; and United Airlines lists it at N3,193,185. Delta Air Lines offers the ticket for N3,310,097.

The Lagos to London flight with Kenya Airways attracts N1,258,857. Asky Airlines prices it at N1,572,617, while Qatar Airways charges N1,639,602.

From Lagos to Canada, Delta Air Lines economy tickets cost N1,982,017. United Airlines charges N3,188,672; Qatar Airways, N2,511,041; and Air France, N2,660,376.