The Nigeria Civil Aviation Authority (NCAA) has appealed to airlines to remit the five per cent Ticket Sales Charge accruing from ticket sales to the agency timely and transparently and threatened that none or delayed remittance of the revenues will attract punitive measures which would include no pay-no service policy from January next year.

 NCAA made this known during a retreat it organised for airlines’ Chief Financial Officers and other stakeholders in Lagos recently. 

In his opening and keynote address, the Director General, Civil Aviation, Captain Chris Najomo, represented by the Director, Operations, Licensing and Training (DOLT), Captain Donald Spiff, stated that the event, which is Civil Aviation Cost Recovery and Revenue Optimization Stakeholders’ Retreat, was part of NCAA’s on-going strategic models of collaboration and synergy for strengthening the Nigerian aviation industry by providing  effective regulation for sustaining safer skies, enhance efficiency, foster stability thereby increasing the contribution of the sector to the Nigerian GDP and national economic growth. 

Also, in his presentation, themed: ‘Strengthening Inter-Agency Collaboration in Civil Aviation Economic Regulation’, Godwin Ameh of NCAA explained that late or non-remittance of five per cent TSC was the major gap, whichputs the authority at very tight corner in provision of safety and security oversights.

He emphasised that the Authority may impose fees which may be reviewed, for the services of the authority, including authorisations, approvals, inspections and for the issue and renewal of permits, licences and certificates, and shall maintain and publish a schedule of all such fees that it may impose. 

 He said any air operator that failed to remit or pay to the authority, within the time specified in the relevant regulations made under this Act, the five per cent of airfare, contract, charter, cargo, sales charge and management fee collected under the section, commits an offence and its directors are each liable on conviction to a fine of N5 million or imprisonment for a term of two years or both. Also, CARs prescribe monthly surcharge of one per cent compound interest on outstanding balance until final settlement. 

Other sanctions such as No-Pay-No-Service may be imposed, insisting that the authority cannot continue to chase airlines for funds it could seamlessly collect.

Chief Finance Officer of Aero Contractors, Charles Grant, who spoke on the challenges faced by Nigerian airlines, said airlines were burdened by heavy taxes, saying that the fares passengers pay for their flight are layered with taxes, which make domestic airline business unprofitable because they rely on foreign suppliers who need foreign exchange.