The director general of the a Nigerian Civil Aviation Authority (NCAA), Captain Nuhu Musa has declared that airlines can only file for airfare increase after notifying the regulatory body and get approval.
This is just as the NCAA DG gave clarity on the functions of the Federal Competition and Consumer Protection Commission (FCCPC) and the NCAA.
Speaking with some journalists in Lagos, Captain Musa explained that while the FCCPC deals with consumer protection, NCAA deals with air transport regulation, which still deals with the issue of airfares.
Giving explanations on how airlines can increase airfares, the NCAA Chief declared: “All airlines are supposed at the beginning of each year to file their airfares to NCAA and most of the airlines do that. However, during the year, if the airfares are going to be higher than the ones filed before the NCAA, the airline is supposed to notify NCAA. Then, we will do our reasonableness check and if we are good with it, we tell them to go ahead, but if not, we will tell them no. It is not an unfettered deregulation that they can do as they like; there are guidelines to that in our regulations.”
The regulatory body while stating that it was not in charge of negotiating Bilateral Air Service Agreements on behalf of Nigeria, declared: “It is a policy issue and this is led by the Ministry. NCAA makes its own contributions, but the final decision is by the Ministry. So, anyone that blames NCAA for that is either out of lack of understanding of how BASA negotiations work for Nigeria; and every country has its own peculiarity on how they do BASA. In Nigeria, it is the ministry.
He used the opportunity to talk on the coming new national carrier, Nigeria Air and the controversial Air Operators Certificate (AOC) confirming that the promoters of the new airline had applied for the AOC and that the process was ongoing.
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Stating that he did not have any assurances of when the licenses would be ready, the NCAA Chief added: “You see, when you apply for AOC or any certification, some issues that are not completely under the purview of NCAA like seeking security clearance for the applicant, security agents do that. I don’t have a control over security agencies to give such clearances. They have applied and it is ongoing, we are waiting for security clearance.”
On the extension of AOC for some operating airlines, Musa who said certain conditions and processes must be completed said: “If for whatever reason, either from the operator or the NCAA, we cannot complete those processes before the expiration of the AOC, we will extend it for them.
“Extension is for the system to continue to ensure that all regulatory requirements are complied with for the renewal. Sometimes for some reasons, some operators are not able to meet certain requirements on time or may be on our own part, we cannot complete the process, then, we say instead of disrupting the system, we give them extension for that period so that they can continue their operations.
“Before the extension completes, their renewal is given. People just talk without seeking clarifications. So, we look at the situations; give them extension while we continue to work to complete the renewal process. Renewal is not automatic. It is a process with steps, which must be completed.”
According to him, on the maximum period of extension an airline can receive, Musa said: “The most we have given if I am not mistaken is 90 days, but usually, it is hardly more than 30 days. We do this thing so that the system will keep functioning. You can imagine if we are unable to complete the process either on the part of the airline or NCAA, we now ground one or two airlines, can you imagine the chaos that we will have in the industry?
“So, people need to understand, rather than the blanket condemnation without clarifications on what the actual issue is and why we are doing what we do. It is the same people that will turn around and insult us if we don’t renew the AOC of a particular airline. Whatever you do, head or tail, you lose.”