The airline vows to keep airfares despite ban threats
British Airways, faced with increasing scrutiny for alleged price fixing with Virgin Atlantic, and disproportionate fares along Nigerian routes, said on Monday that fares can only be reduced by having more operators in the market to meet a fierce Nigeria demand.
However, Nigerian officials have promised a relentless push to review the fares downward as a 30-day deadline for reversal announced last month by the Aviation Minister, Stella Odua, draws closer.
At the Senate Aviation Committee hearing investigating the price disparities that have seen Nigerian routes more expensive to London than similar distance, Oduah said: “I am determined and unwavering in my resolve to follow this matter to the logical conclusion and we remain single-mindedly focused on that.”
British Airways, represented at the hearing by its Country Manager, Kolawole Olayinka, said whereas the Nigerian market, which is one of the company’s largest globally, presented it with some of the highest demands, conditions of operations too were exorbitant.
“There can be only one thing that can bring down the price: more operators,” he said. “It is a matter of simple supply of demand.”
But the arguments were deflated by ministry officials, as well as lawmakers, who argued that Nigerians had been unfairly treated for the 75 years of British Airways’ operations here.
The price disparities were cited before the company’s representative, and drew what lawmakers said were unsatisfactory responses.
For example, while a Lagos-London first class return fare is $10,816 and Abuja-London return flight is $10,144, the Accra-London equivalent is $4,798.
British Airways and Virgin Atlantic have been found guilty of price fixing and violation of Nigerian aviation laws by the Ministry of Aviation. A similar conviction by United States and United Kingdom authorities had forced the two British companies to pay compensation to thousands of passengers ripped off for years.
The senate committee said it will press for the fare reduction and improved aviation regulations; as well as ensure extra fares where price fixing was established, were repaid to Nigerian passengers.
Also, allegations of unfair treatment of Nigerian carrier, Arik, by the UK authorities will be considered, the lawmakers said. “If we discover you took their money, a kobo will not be left with you,” said the committee chairman, Hope Uzodinma.
The hearing continues Tuesday.
