Airlines reject automated debit regime on tickets, cargo sales

Operators seek clarifications on 5% charges
Local airlines yesterday rejected the automated debit system for mandatory five per cent charge on air tickets and cargo sales.

The airlines, though, said while they were not against the service charges and the new automated regime, the NCAA must first make its details clear for transparency before full implementation.

The aviation apex regulatory body, the Nigerian Civil Aviation Authority (NCAA), had last week issued a final ultimatum for airlines to automate their remittance of the statutory five per cent Ticket Sales/Cargo Sales Charge (TSC/CSC) by March 31, 2017.

Long in coming, the model is to enable the airlines remit without delay a backlog of debt airlines owes regulators. The airlines’ non-compliance as at yesterday puts them at risk of being grounded by the NCAA.

The chief operating officer of one of the airlines yesterday said that his organisation was yet to comply and has no plan for such yet.

The officer, who would not want to be mentioned, said the ultimatum was unfair and contrary to agreements reached with the NCAA three days before the order was given.

The Guardian learnt that Aero Contractors that has been operating the automated remittance system since last year is on the verge of stopping, describing it as unfavourable.

President of the Airline Operators of Nigeria (AON), Captain Nogie Meggison, called for the suspension of the policy.

Meggison said the airlines 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.

General Manager, Public Relations of the NCAA, Sam Adurogboye, 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.

Adurogboye said with the expiration of the final warning last week, it was expected that all airlines that are yet to adhere should comply. He added that failure to comply would be viewed seriously and the authority could be forced to invoke the necessary provisions of the law against defaulting airline.