RE: BA-VAA PANEL CEASE AND DESIST ORDER

The report of the administrative panel set up by the Nigeria Civil Aviation Authority (NCAA) to review decisions taken by the regulator with respect to fines imposed on the British carriers for improper conduct wasn’t pleasant to our hearing but fair.

The panelist in their findings concluded that, these carriers colluded, cooperated and coordinated in periodically raising and maintaining the passenger fuel surcharge (PFS). The PFS was used to deprive the NCAA, Federal Government and travel agencies, statutory revenue and commission from base fare while Nigerian passengers were unfairly exploited.

The panelist also unanimously agree that these carriers had a collusive arrangement which undermined the principle of fair pricing and the NCAA was within its regulatory authority and indeed has substantiated its findings. Sadly, the regulator’s hand was tied by Act No 49, of 1999, that was used to establish the authority with a limitation to ask exploiters to Cease and Desist only. Simply put, the fines imposed by NCAA are not backed by law.

The absence of an anti- trust body and competition laws in the country is retrogressive to the development of the industry and other sectors of the economy, the legislative arm need to do something urgently.

A company with significant market power and dominant position operating in a jurisdiction without standard competition law rules and an overarching competition authority can in effect engage in any anti-competitive practice without fear, unfortunately, Nigeria is one of those jurisdictions.

An economy like Nigeria is now overdue for a competition regime: a dedicated law and a competent authority to enforce it judiciously. A competition regime will protect the interests of millions of consumers as well as create a level playing field for all kinds of businesses to flourish. Crucially, it also provides businesses with the opportunity to compete on price and quality, in an open market and on a level playing field without anti-competitive restraints.

The benefit of putting one’s house in order is that, when you speak, you speak with authority and you command respect. Once your house is in order, who will disrespect your authority or decision.

The NCAA should go home with the words Dr Gbadebo-Smith a member of that panel, “that PFS should have been subject to taxation, these airlines in my view owes taxes on that segment of its ticket cost and NCAA is correct in insisting they pay taxes, the means of recovering the taxes is not within the remit of the panel”.

NCAA is authorise to get these taxes from the carriers, therefore the DG and his team should proceed. Also the industry should gear up and start the process of updating the civil aviation laws that will trash archaic orders such as cease and desist.

For BA and VAA, exploiting Nigerians through the weakness of our laws is not right and just. They should make amends and thank their stars we were generous enough to give a Cease and Desist order, in other climes the fines are complemented with jail terms for airline managers who hold sensitive positions during that period.