Airlines To Face Sanctions Over Arbitrary Fare Increase
Domestic airlines risk sanctions if they increase fares arbitrarily, the Nigerian Civil Aviation Authority, NCAA has warned.
Advising all airline operators in Nigeria to desist from arbitrary increase and miscellaneous charges on ticket payment content without the authority’s approval, the NCAA directed that all airlines should file any proposed add-on charges, surcharges or other miscellaneous charges, with the regulatory authority.
The authority further stated that in the procedure of filing same, all justifiable reasons for increment must be adduced in accordance with Parts 18.104.22.168 and 22.214.171.124.(i-iii) of the Nigerian Civil Aviation Regulations (Nig.CARs) which relates to the approval of charges on all flights within Nigeria or originating from Nigeria to international routes as contained in the Nig.CARs 126.96.36.199.
“In requesting for approval of any add-on charges or surcharge, an air carrier is required to provide justifiable basis for the proposed increment with a consideration of all relevant factors, including a new linear rationalisation for the specific aggregated costs sought to be recovered and consumer interests,” the NCAA’s spokesman, Mr Sam Adurogboye, said yesterday.
In addition, Nig.CARs 188.8.131.52. reads, “When approving any application for an add-on charge or surcharge related to fuel, the authority shall: take into account changes in prices of aviation fuel, the relevant hedging policies of the air carrier, the justifications provided by the air carrier and other relevant factors; ensure that the revenue so generated would not exceed the additional fuel costs borne by the airline operators during the corresponding period; and approve on a short term basis, not exceeding a period of two (2) months in each instance.
Therefore subsequently, the NCAA wishes to notify all operators that any add-on charge, surcharge, or any other miscellaneous added on passenger tickets without regulatory approval, should cease forthwith. Any further breach would attract the appropriate sanction.