Nigerian airlines call for clarity on TSC automation

The 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 five per cent Ticket and Cargo Sales Charge are clearly and properly defined.

Speaking on behalf of the airline operators, the AON Chairman, Captain Nogie Meggison, noted that AON had 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 five per cent Ticket and Cargo sales Charge. Five per cent TSC is  only applicable  on NUC fare in compliance with industry practice and as currently  applicable to  international carriers operating out of Nigeria. AON members  are currently remitting the five per cent TSC charges and it is on record that NCAA  introduced financial clearance process for services over  the last year. Despite our members improved payment, infrastructure and service level continue to deteriorate across all facets of the industry under the same authority.”

AON also faulted 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 International Civil Aviation Organisation  (ICAO) Non-Discriminatory Policy. As per 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. (Source: ICAO Document 1982)

“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 have consumed over 25 airlines in the last 30 years since deregulation in 1982.

“While the same NCAA is weak and has turned blind eyes in enforcement of other sectors, i.e runway quality, airport fencing, bird strike, Navigational aids, fuel quality control by oil marketers, poor quality delivery by service providers, and Agencies inflicting unauthorized and illegal billing contrary to the provisions of the 2006 ACT. (Part V (12)(2))

“AON is tired and cannot continue to be the only soft target or easy prey. We appeal to the NCAA to rather focus their energy on being an enabler and to foster growth in the Nigerian aviation industry in line with their Mission Statement; “To provide aviation safety and economic regulation in the most efficient, effective, quality and technology driven manner to the satisfaction and benefit of all stakeholders, consistent with the highest international standards and the sustainable development of the industry and national economy.”

“AON wishes to make it clear that we are not against automation. However, we seek clarity on these and other issues tabled before the DG during our meeting of which he agreed to look into our concerns and consider the option of charging a flat rate but tying it to the Dollar to take care of fluctuations. This was a promise the DG made during the meeting with AON which elicited applause from members as a symbol of our pleasure and gratitude to this planned action.

“Unfortunately, while we awaited the agreed implementation, we were surprised that to the contrary NCAA went ahead to issue a Press Release,” Meggison stressed.