Prices Fixing Scandal: NCAA to Install Info Portal @ Airports

Nigeria Civil Aviation Authority (NCAA) has concluded plans to install a Consumer Protection at the nation’s airports. This is coming on the heels of accusations of the British Airways and the Virgin Atlantic Airways of collusion in prices fixing on routes including Lagos to London. Dr. Harold Demuren, the director general of NCAA disclosed this during his presentation at the House probe into the alleged fare fixing scandal involving the two airlines. He said the platform that serve as enforcement initiative aid for NCAA Consumer Protection Directorate, will be installed for the purpose of providing significant information capable of assisting consumer decision making in the selection of their service provider. He said that a committee set up in 2011 to investigate the matter, apparently discovered a wide disparity in fares for similar point of departure and destination in distances from Nigeria and Ghana, among others. Demuren went memory lane on efforts made by NCAA to address the problem, incidentally, the two airlines failed to comply during the investigations “I would like start with the Regional Imbalance as it relates to BA and VAA. Starting sometime in 2010, the NCAA after following events arising in other jurisdictions, particularly the U.S and U.K, and conducting internal assessments with respect to operations of BA and VAA regarding whether they were colluding to exploit consumers, began a comprehensive evaluation of the conduct, our laws, culpability and potential remedies. “Sequel to this, on May 4th, 2011, NCAA opened an important and comprehensive investigation into the conduct of exploitation of Nigerian Consumers by BA and VAA, with respect to collusion in prices fixing on routes including Lagos to London. “Of great concern, NCAA was aware that BA and VAA had been subjected to similar investigations in other foreign jurisdictions, and admissions of culpability or findings of violations had occurred or been established; penalties were awarded and compensation set aside and or paid to consumers in those jurisdictions. “Since neither of the two airlines voluntarily provided information to NCAA about their conduct, admissions or culpability, the NCAA committed its resources to a comprehensive investigation. The NCAA boss further revealed that this investigation saw more than one dozen witnesses testifying before the investigating panel, mostly made up of employees of both BA and VAA and the critical examination and analysis of over 10,000 pages of documents in over 24 volumes and information gathered from 3 continents including courts and other regulatory authorities in the U.K and U.S. He added that the airlines equally connived to fix the passenger fuel surcharges which eliminated competition in the sector. “On November 14, 2011 after this long painstaking investigation, NCAA made its findings, which included the fact that, both BA and VA violated Nigerian law and Regulations and exploited Nigerian consumers. “Specifically, both airlines colluded to fix the Passenger Fuel Surcharge in a manner that eliminated or suppressed choice and competition and the Nigerian public were the victims of this conduct while both airlines reaped huge profits from their misconduct. “In addition, both airlines deceived Nigerians and used unfair methods in procuring these huge revenues in their businesses. Demuren solidified that NCAA was left with no option than to impose monetary sanctions on the airlines, “And a decision that passengers who were exploited must be compensated. “Both airlines being dissatisfied with the NCAA Findings from its investigation appealed under NCAA Regulations. The NCAA set up an independent Administrative Appeals Panel chaired by a retired Justice of the Supreme Court of Nigeria.” He maintained that Nigeria is to be briefed on the outcome of a study which the U.K Department of Transport commissioned its Civil Aviation Authority to conduct to determine whether there is evidence of abuse in the UK-Nigeria aviation market. “In order for the engagement and evaluation to fair, balanced and mutually respectful, The Honurable Minister of Aviation has mandated the NCAA to conduct a similar comprehensive survey/study from the Nigerian standpoint with its consultants. He promised that NCAA will remain fervent and work assiduously to prevent exploitation or unscrupulous practices that allow imposition of unusually and inexplicably high or disparate ticket fares on Nigerians. Part of its strategy is the imposition of stiff penalties on violators through appropriate laws of the land. NCAA has also urged the travelling public to be vigilant and remain impermissive of exploitation, while being circumspect in making their travel plans and choice of airlines, while the authority ventures into alternative means to educate the public further. “NCAA has also advanced in its efforts to develop a Consumer Protection Portal that will be installed at the nation’s airports for the purpose of providing significant information that will assist consumer decision making in the selection of their service provider. This will also serve as enforcement initiative aid for NCAA Consumer Protection Directorate. “This Portal and the incoming Regulations will provide both the basis and the process of gathering multi-dimensional data, analysis of the data and distribution of compliance trends and or information developed based on the use of the data. These are critical areas of consumer protection and economic regulation of the industry. Demuren reiterated NCAA’s decision to evolve more enforcement laws to protect consumers across the board.