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We didn’t approve increase in airfares – NCAA

By on July 12, 2016

The Nigerian Civil Aviation Authority (NCAA) has denied approving the increase in domestic airfares, saying all tariffs for airlines’ services, including fares, rates, add-on charges or terms and conditions of service have been liberalised.

This came after reports that the NCAA had authorised airlines to increase their fares.

According to a statement by the agency, airfares and sundry charges have been statutorily deregulated and subjected to market forces.

The statement by the General Manager, Public Affairs, NCAA, Mr. Sam Adurogboye, however, said, all air carriers or their agents were expected to file their fares with the agency.

The NCAA said, “All air carriers or their agents are expected to file with the authority a tariff for their services showing all rates, fares and add-on charges, including the terms and conditions of free and reduced rate transportation for that service as specified in IS.18.14.1.1.

“They are also to 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.”

The agency added that it usually approved the fares according to the figures filed by the airlines.

It, however, said that prior to the approval, all fares filed with the authority were subjected to a breakeven analysis.

It said, “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, the NCAA will similarly intervene if the fares are too high to avoid overpricing that will deny the teeming passengers access to air transportation.”

The agency added, “However, in 18.14.1.4, if an air carrier that offers a service fails to apply the fares, rates, charges or terms and conditions of carriage set out in the tariff that applies to that service, the authority may direct it to take the corrective measures it considers appropriate and pay compensations for any expense incurred by a person adversely affected by its failure to apply the fares, rates, charges or terms and conditions set out in the tariff.”