Lagos-London: Foreign Competitors Move Troubling And Predatory – Ezekwesili Reacts To Onyema’s Allegation

A former Minister of Education, Obiageli Ezekwesili has called on market regulators in the aviation sector to truncate the alleged attempt by dominant players on the Lagos-London route to sabotage the entry of Air Peace into the international operation.

Ezekwesili lamented that the accusations made by the Chairman of Air Peace, Allen Onyema must be looked into and resolved.

Recall that Onyema had alleged that foreign carriers operating the Nigeria-UK route were allegedly conspiring to send Air Peace out of international operations by crashing airfares on the route.

He claimed that there is an “unspoken alliance” among foreign airlines to use lower pricing to eject Air Peace from the Nigeria-London route.

Reacting to the allegation, Ezekwesili asserted that hostile pricing models in any competitive market is predatory and are usually ruled against and sanctioned by the market regulator.

Speaking via her X account, she wrote,  “As one who loves the market competition economic model, I followed the @flyairpeace Lagos-London route entry with profound interest and excitement at how happy it made Nigerians.

“Nothing beats consumer satisfaction in any product or service market. Nigerians may not all grasp how market principles and not government control have always served us best but they do enjoy it whenever it happens well- eg. in Telecommunications.

“Hostile pricing models in any competitive market is predatory and are usually ruled against and sanctioned by the Market Regulator. Predatory pricing is when the dominant airlines try to discourage entry of low-cost competitors or regional players.

“It is for this reason that I find the latest developments where dominant players on the Lagos-London route appear to be trying to distort the healthy competition occasioned by the entry of Air Peace into the market troubling.

“The moves of those dominant airlines on that route appear predatory and need to be nipped in the bud immediately, once the regulator gets all the facts.

“The unhealthy development is worthy of serious regulatory action- establish the facts and act.

“The market dynamics must be allowed to work according to the basic principles of competition and not predation that will ultimately harm the customers.”