… Vows to sanction erring operators
The Nigerian Civil Aviation Authority (NCAA) has put the total sum of debts owned by domestic airlines across the country to N15 billion, stating that there is nogoing back on its earlier directive on automation of remittance of the five per cent ticket and cargo sales charges.
The apex aviation regulatory agency disclosed this yesterday in an official statement signed by the general manager, Public Affairs, Sam Adurugboye which was made available to LEADERSHIP.
In the statement, NCAA warned that any airline that fails to comply will be viewed seriously by NCAA, stating that the five per cent ticket and cargo sales charges are revenue accruable to the aviation agencies through NCAA which is contained in Part V Section 12(1) of the Civil Aviation Act 2006.
It pointed out that this section in the Civil Aviation Act merely mandates the Airlines to collect the charges paid by the passengers on behalf of NCAA and remit same appropriately and in real time which have not been so.
“There is no ambiguity with regard to the components of the billing of the charges, Part 18.12.4. of the Nigeria Civil Aviation Regulations (Nig.CARs 2015) clearly provides that “the five per cent air ticket sales charge shall be based on the total cost of travel paid by passengers to the airline. This shall be the cost of ticket inclusive of fuel surcharge or any other charge added to the total cost of travel by the airline exclusive of government value added tax or any other tax that may be imposed by government from time to time.”
Therefore for the avoidance of doubt, all airline operators should be guided by Part 18.12.5.which says “all domestic and international airlines operating in Nigeria shall forward to the authority through an electronic platform provided by the Authority, all relevant documents such as flown coupons, passenger or cargo manifests, air waybills, load sheets, clients’ service invoices and other documents necessary for accurate billing within 48 hours after each flight”, NCAA stated.
In realisation of this, the agency reminded that the Federal Government of Nigeria had approved the introduction of Aviation Revenue Automation Project (ARAP) for revenue collection to aid data integrity, transparency, transaction accountability, controls and revenue assurance to the authority in 2011. It however, emphasized that the said charges is at no cost to the operators.
NCAA said that since the domestic airlines have not joined the International Air Transport Association/Billing Settlement Plan (IATA/BSP), the Aviation Revenue Automation Projects (ARAP) has become an alternate means of compliance to smooth remittance provided by the Authority in line with Federal Government’s directive.
On the call for review, NCAA which notified that it has never carried out a review since inception said “this is definitely out of the purview of the airlines. Any review should be at the behest of the NCAA using Part 18.12.3 which states “the Authority may review the five per cent air ticket, contract, charter and cargo sales charge from time to time in consultation with stakeholders”.
Meanwhile, the Nigerian Civil Aviation Authority (NCAA) had recently alerted all airlines in the country that final ultimatum to the airlines to automate their remittance of the statutory five per cent Ticket Sales/Cargo Sales Charge (TSC/CSC) ended on the 31 March, 2017.
In a swift reaction, Airline Operators of Nigeria (AON) had on Monday, called for the suspension of automation of revenue remittance by airlines to the Nigerian Civil Aviation Authority (NCAA) faulting the process and manner of such charges.
The largest aviation body in Nigeria queried why the authorities failed to comply with that aspect of the Civil Aviation 2006 Act which indicates that “Air Ticket and Cargo Sales charge may be reviewed by the Authority in consultation with the stakeholders from time to time”.
According to AON, which spoke through its Chairman, Captain Nogie Meggison, such payment automation which was designed to favour only foreign airlines, should therefore, be put on hold until the parameters that constitute the five per cent Ticket and Cargo Sales Charge are clearly and properly defined.