Airfare war: BA, Virgin Atlantic violated Nigerian aviation law – FG insists

Posted by admin Latest Politics Tuesday, April 17th, 2012

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The Federal Government, yesterday accused the nation’s aviation regulatory agencies of collusion with foreign airlines to fix airfares in the country. Foreign Affairs Minister, Olugbenga Ashiru said this when he appeared before the Senate Committee on Aviation at the commencement of a three-day public hearing on the violation of Nigerian aviation laws and practices by foreign airlines operating in the country.

He, however, cautioned that the face-off should not degenerate to a diplomatic row between Nigeria and Britain.
It was also the day, Aviation Minister, Stella Oduah, disclosed that the matter had been referred to the Ministry of Justice for adjudication.

Ashiru said: “The crisis over the fare disparity is a commercial discussion and should not be dragged to diplomatic level. What we have is diplomatic dispute and what we see happening is the failure of regulatory agencies to play their roles effectively.

“What is happening is price fixing and price fixing is punishable under US and UK laws. What is the justification for Business and first-class fare to range between 11,000 and 12,000 US Dollars for a journey of five hours for London/Lagos/Abuja route?
Ashiru further informed the committee that Johannesburg to London route attracted half of same amount, saying “business and first-class fare is the most expensive in the world and this is not defensible and if the regulatory agencies have been doing their work, we would not have got to this stage.”
Deputy Senate President, Ike Ekweremadu who declared open the public hearing on behalf of the Senate President, advocated the return of the national carrier for the country.

He equally lamented that if smaller countries like Ethiopia, Kenya and even South Africa could boast of national carriers, “Nigeria should be able to operate a national carrier not just for the pride of the country, but as a way of generating employment and revenue for the country.
Declaring open the three-day public hearing, the Deputy Senate President, Ike Ekweremadu, said the aim of the hearing was not to witch-hunt any foreign airline or discourage foreign investment,” but said, “Doing business should not be at the expense of Nigeria and Nigerian people.”

“We feel embarrassed when we see other nations carrying their national flags and we believe it is time to restore the pride of Nigeria by having a national carrier.”
Speaking before the committee, Oduah noted that national carriers were not for government to handle, adding, “they are commercial entities, engaging in commerce and as such liable and responsible to the local laws of the jurisdictions where they operate.”
On the raging controversy over airfare disparity, Oduah said: “Our investigation which was pursuant to the Nigerian Civil Aviation Act 1999 and the one of 2006 also revealed that Nigerian law was violated. We have fully examined the laws, circumstances and decisions, we do not agree and the matter is now with the Federal Ministry of Justice.
“I’m determined and unwavering in my resolve to follow this matter to the logical conclusion and we remain single-mindedly focused on this”, she assured the committee and Nigerians.”

-Sunwp_posts