Airline Operators of Nigeria (AON) has called for the suspension of automation of revenue remittance by airlines to the Nigerian Civil Aviation Authority (NCAA) until the parameters that constitute the 5 percent Ticket and Cargo Sales Charge are clearly and properly defined.
Speaking during a press briefing yesterday, Nogie Meggison, AON chairman, said, “AON has no problem with the Authority going ahead to automate the collection and remittance of the said charges, but that the NCAA needs to give clarification on what constitutes the 5 percent Ticket Sales Charge (TSC).
“Domestic airlines are currently remitting the 5 percent TSC charges and it is on record that NCAA introduced financial clearance process for services over one year.
“Despite our members improved payment, infrastructure and service level continues to deteriorate across all facets of the industry under the same Authority.
“AON also has issues with the immediate mandatory automation without first addressing the cost of integration while sadly at the same time not asking the foreign carriers operating in Nigeria to join the same automation platform and are charged on their base fares.”
This is wrong and discriminatory and also against ICAO Non-Discriminatory policy, he said, adding that as a recommendation adopted by the ICAO Council, states are encouraged to incorporate the four key charging principles of non-discrimination, cost-relatedness, transparency and consultation with users into their national legislation, regulation or policies, as well as into their future air services agreements.
“It is apparent that NCAA is preying on domestic airlines, which they see as an easy target, a cash cow and for cheap publicity, over regulating domestic operators, and pushing domestic airlines to the edge of insolvency/bankruptcy.
“It is this kind of policy that has reduced the lifespan of Nigerian airlines and has consumed over 25 airlines in the last 30 years since deregulation in 1982.
However, NCAA gave March 31, as the deadline for the remittance of the 5 percent ticket charge, adding that defaulting airlines would face sanctions.
However, Sam Adurogboye, general manager, public relations, said the introduction of the Aviation Revenue Automation Project (ARAP) for revenue collection was to aid data integrity, transparency, transaction accountability, controls and revenue assurance to the authority.
“It is expected that all airlines that are yet to adhere to the automation and remit collected revenue to NCAA should comply forthwith. Failure to comply will be viewed seriously as the Authority will be forced to invoke the necessary provisions of the law against defaulting airline,” Adurogboye said last week.
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