BA, Virgin exploiting Nigerians –NCAA

by Oluwole Josiah, Abuja Punchng.com

The Nigerian Civil Aviation Authority has accused the British Airways of colluding with Virgin Atlantic to exploit Nigerians by engaging in price-fixing.

The Director-General, NCAA, Dr. Harold Demuren, told the Senate Public Hearing on Aviation on Monday that “BA and VAA coordinated and cooperated in fixing, periodically raising and maintaining the Passenger Fuel Surcharge with respect to travel including to and from Nigeria.”

He said the conduct of both foreign airlines was an unfair method of competition, adding that PFS was deceptive and misleading in the manner it was implemented.

Demuren said, “The PFS, having been discovered not to be what BA and VAA portrayed it to be, was a special device that deprived the Federal Government of legitimate revenue that should have been derived from the statutory five per cent of the Ticket Sales Charge.

“In addition to depriving the NCAA of the statutory revenue, BA and VAA also cheated and deprived other allied service producers, such as travel agents, who were paid commission only on the base fare and deprived of income on the PFS, which they legitimately earned.”

“The NCAA also found that the illegally obtained PFS should be refunded to passengers as is happening in the United States and United Kingdom currently,” he added.

According to him, BA and VAA had earlier admitted to the same misconduct in the US and the UK and were already compensating travellers in those countries.

Demuren noted that the regional imbalance in airfares was no longer acceptable and both airlines should begin to make refunds to Nigerians.

Responding to the allegations, British Airways’ Country Manager, Mr. Kolawole Olayinka, said it was unfortunate that the profitability of the airline was being discussed in the Senate.

He said there was no law that the airlines should pay five per cent of the PFS to the NCAA as it did for the TSC, adding that should such legal explanation come to the notice of the airline, it would immediately comply.