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Foreign airlines get Dec. deadline for 5% revenue automation

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Plane on the runway for takeoff


The Nigerian Civil Aviation Authority (NCAA) yesterday ordered foreign airlines to comply with the automated revenue payment platform for the remittance of five per cent Ticket Sales Charge/Cargo Sales Charge (TSC/CSC) on or before December 31.

The apex regulator, in a recent directive, said failure to comply would attract severe sanction. It was learnt that except for Lufthansa German Airlines, the rest are all African Countries carriers operating to Nigeria under the existing Bilateral Air Service Agreement (BASA).

Director of Air Transport Regulation (DATR), Group Captain Edem Oyo-Ita, said despite the regular meetings, reminder letters and follow-up by the authority to airline’s management, “these defaulters refused to comply with the Federal Government’s directives on Aviation Revenue Automation Project (ARAP), and abide by the provisions in the BASA between Nigeria and their respective Countries.”

Oyo-Ita said it was important to note that in line with Part 18.12.5 of the Nigerian Civil Aviation Regulations (NCARs) 2015, “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 manifest, air waybills, load sheets, clients’ service invoices and other documents necessary for accurate billing within 48 hours after each flight”

In the same vein, Part V Section 12(1) of the Civil Aviation Act 2006, stated that the five per cent TSC/CSC to be collected from passengers by airlines and paid to NCAA. This collections, which are shared among the agencies, are meant for the maintenance of Safety critical, provisions of infrastructural facilities and for meeting their numerous obligations.

He said: “Federal government has came up with the introduction of this Aviation Revenue Automation Project (ARAP) for revenue collection to engender data integrity, transparency, transaction accountability and control of revenue to the Authority in 2011, which is at no cost to airline operators.

“Meanwhile, there have been appreciable and commendable high level of compliance by the Domestic Airlines, which stands at 97 per cent of the current domestic air transport operations.”He, however, appealed to other domestic airlines that are yet to join to take steps be integrated on the platform by working with First Bank of Nigeria (FBN)/Avitech for immediate and automatic processing and implementation of the project or face sanction.

It would be recalled that the mandatory five per cent ticket and cargo sales charge had until lately been paid manually by airlines and when it is convenient. One-too-many defaults led to airlines, especially the local operators, owing the apex regulators debt in excess of N15 billion in 2017.Besides using the funds to cover its day-to-day operations, it also enables personnel to get trained for the improvement of air travel in the country.

Of the entire pool, NCAA gets 58 per cent, Nigerian Airspace Management Agency (NAMA) gets 23 per cent, Nigerian Meteorological Services (NIMET) gets nine per cent, Nigerian College of Aviation Technology (NCAT) gets seven per cent and the Accident Investigation Bureau (AIB) gets three per cent.


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Edem Oyo-ItaNCAA
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