Fare disparity: FG stays ban on foreign airlines

By Kenneth Ehigiator
LAGOS — The federal
Government has stayed action
on ban of foreign airlines over
fare disparity to allow the
Senate conclude its
investigation on the matter.
It, however, said the halt of
the ban was temporary, as it
would still be effected after
the Senate had concluded its
probe on the issue.
Government had planned to
ban the airlines at midnight
yesterday should they fail to
adjust their fares to tally with
those charged in other
countries in West Africa,
especially Ghana.
But a statement in Abuja,
yesterday, by Special Adviser,
Media, to the Minister of
Aviation, Mr. Joe Obi, on behalf
of his boss, Princess Stella
Oduah, said going ahead with
the ban without allowing the
Senate to conclude its
investigation would amount to
disrespecting the upper
chamber of the National
Assembly.
Besides, Obi said the Aviation
Ministry had been in serious
negotiations with the foreign
airlines, particularly British
Airways and Virgin Atlantic
Airways, on reduction of fares.
The statement read: “On
March 26, 2012, a 30-day
ultimatum was issued to all
foreign airlines operating in
Nigeria to dismantle their fare
disparity within the West
African coast or face a ban
from operating into the
Nigerian airspace. That
ultimatum expired today.
“Ever since the ultimatum was
issued, a lot of developments
have occurred. There have
been consultations and
negotiations between the
Nigerian and British authorities
with regard to the operations
of BA and VAA.
“Negotiations involving other
foreign carriers have also
been on-going. But the most
significant development since
the issue broke out was the
intervention of the House of
Representatives and the
Senate, given the high
interest the question of fare
imbalance generates across
the country.
“Currently, the intervention /
investigation of the Senate
Committee on Aviation is still
on-going. The first phase of
that investigation was the
public hearing where all
interested/affected
stakeholders made various
representations to the
committee.
“While the Minister of Aviation,
Princess Stella Adaeze Oduah,
insists that the regional fare
imbalance must be dismantled,
with severe consequences for
all airlines that fail to comply,
it is, however, imperative to
allow the Senate investigation
to take its full course.
“As a result, the proposed
ban of all airlines that fail to
restore fare parity has been
put on hold in the interim in
deference to the ongoing
intervention effort of the
Senate and the National
Assembly.
“Action in this regard will be
determined at the conclusion
of the Senate investigation in
order not to prejudice the
outcome of the committee
report as well as accord due
respect and recognition to
the current effort of the
institution of the National
Assembly at resolving the
issues in the best interest of
the nation.”
Senate’s report
The Senate is expecting the
probe report from its
Committee on Aviation in the
next two weeks.
Charging the committee with
responsibility for the probe,
Senate President, David Mark,
had described fares charged
by the airlines, especially
British Airways and Virgin
Atlantic Airways, as
exploitative of Nigerians.
He had said: “It (high fares)
has been on for a long time
and our regulatory agencies
are, in fact, part of the
problems because they have
refused to act in anyway that
would force British Airways to
reduce its fares.
“It is exploitative and no body
should be allowed to exploit
Nigerians. The prices given
are completely out of range;
it is unreasonable; it is
exploitative and nobody
should tell us to sit down here
and not do anything about it
because Nigerians are willing
to pay.”

Source: Vanguard Newspaper