The Chairman and Chief Executive Officer of Air Peace, Allen Onyema, has dismissed allegations that Nigerian airlines engage in price gouging or coordinated fare fixing, describing the claims as unfair and poorly grounded.
Speaking during an interview on ARISE News on Sunday, Onyema said accusations from government agencies were particularly troubling, questioning the basis used to reach such conclusions.
“It’s very painful when it’s coming from government agencies that are supposed to know better. Using the word exploitative and coordinated price fixing and all that, that is very, very unfair to these airlines,” he said.
He added, “How did you get to that ? what are the parameters? Or what were the parameters they used to get to that conclusion that airlines were doing coordinated price fixing or maybe hiking prices arbitrarily? I mean, what they used to get to that.”
Onyema explained that ticket prices, particularly on Southeast routes during the festive season, reflect operational realities rather than exploitation. According to him, while flights to the Southeast often depart full, return journeys are frequently almost empty.
“To start with, it is untrue that every fare is 500,000 or 400,000,” Onyema said.
“When you go to the inventory, you will still see 150,000,” he added.
According to him, early booking allows passengers to access lower fares, noting, “So the thing is that during Christmas period, people buy ahead of time. You can get 5 or 10 tickets costing 150,000.”
He explained that fare differences on the same flight are normal in aviation, saying, “You can sit down on the same aircraft with somebody who paid 125,000 Naira. Then you can also sit down with someone who has paid 350,000 Naira. It graduates.”
“That is the standard in aviation. Nigeria is no different,” he added.
“Now let’s take it this way. Let’s take the Southeast, for instance. When you fly to the Southeast at this period in time, you’re coming back almost empty. Who pays for the costs of that aircraft coming back?” he asked.
He said airlines still bear the full cost of such operations, noting, “We’re not running chatter, even chatter operations. When you chatter a jet, you’re paying for that jet going to drop you off. And for that jet coming back empty, you’re paying for both.”
Responding to comparisons between commercial flights and Air Peace humanitarian interventions, Onyema said the situations were not the same.
“Some people are accused, for instance, Air Peace saying, oh, Air Peace, you brought Nigerians back from South Africa free of charge. You brought people free of charge from why are you not doing this one? They’re not the same thing,” he said.
He stressed that those flights were undertaken to save lives, adding, “When we intervened in those places, lives were at risk. You decided on your own to go and enjoy Christmas in your village, and you want the airline to bear the costs of your transportation. It’s very, very unfair.”
On claims that airlines profiteer during festive periods, Onyema said the sector was being unfairly targeted.
“Airlines in Nigeria are being demonized for nothing. It’s a selfless service, I can even say,” he stated.
He also rejected claims that all tickets sell at extremely high prices, insisting cheaper fares remain available.
On the profitability of Southeast routes, Onyema said they were often loss making.
“Then of course, when you go to the Southeast, you take a full load to the Southeast. It’s not profitable,” he said.
“As you’re coming back, you’re coming back almost empty. Sometimes zero is the word. We have them. Sometimes zero. Who pays for that?”
He cited high operating costs, stating, “For example, if you take a waitlist aircraft and you’re paying about $6,000 per hour, when you multiply that by 1,500, you’re already getting 8 million.”
Onyema also said airlines receive only a fraction of ticket revenue after taxes and charges.
“When you look at it, almost 70 or 65% of that money are not coming to the airlines. They’re going somewhere else. Levees and taxes and some other charges,” he said.
“But we are the sacrificial lamb. Everybody is sacrificing the airlines, even for people who pretend not to know,” he added.
Comparing Nigerian fares with international routes, Onyema argued that Nigerians still pay some of the cheapest domestic fares globally.
“Nigerians are flying the cheapest fares in the world, domestically. The cheapest, and I’ll prove it to you now,” he said.
He cited examples from the United States and Europe, saying, “When you multiply that by $1,500, you’re getting over $600,000,” while noting, “In Nigeria, we still have tickets for 125,000. We have tickets for 115,000 in Nigeria, which is less than $60.”
Onyema warned that sustained pressure and misunderstanding of airline economics had contributed to frequent airline failures.
“Why don’t you understand why the mortality rate of airlines in Nigeria is so high? The worst world over,” he said, adding, “Over 80 airlines have come and gone.”
He concluded with an appeal for restraint, saying, “Please, they should let Nigerian airlines be. Enough is enough.”
Faridah Abdulkadiri
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