The regulatory authority, Nigerian Civil Aviation Authority (NCAA) has denounced the report that it authorised airlines to increase fares and said that all airlines’ tariffs for their services including fares, rates, add-on charges or terms and condition of service are fully liberalised.
The agency said it has made this known in reaction to reports in some section of the media that NCAA has authorised airlines to increase their fares.
According to the management, airfares and sundry charges have been statutorily deregulated and subjected to market forces.
It however noted that it may not allow airlines to charges fares that are uncompetitively low or outrageously high and could subject indicted airlines to penalty when this regulation is compromised.
NCAA said all air carriers or its agents must seek the approval of the authority for fare increases, “including the terms and conditions of free and reduced rate transportation for that service.”
It also states that airlines must obtain approval from the Authority to introduce and or increase add-on charges or surcharges such as fuel, internet booking, insurance, security and similar surcharges, prior to implementation.
“Nigerian Civil Aviation Regulations (Nig.CARs) says all tariffs are required to be filed of 18.14.1.1 and shall be done at least seven (7) days before the rates come into effect, except in the case of matching an existing rate for which no prior notification is required,” the regulatory body said.
NCAA said prior to the approval, all fares filed with the Authority are subjected to “breakeven analysis” and this would continue intermittently.
“This analysis is to curb anti-competitive pricing and to ensure that fares are not too low as to impact on safety arising from inability to carry out prerequisite maintenance on their aircraft.
“On the other hand, NCAA will similarly intervene if the fares are too high to avoid overpricing that will deny the teeming passengers access to air transportation,” the body said.
