NCAA explains industry figures, denies revenue shortfall
The Nigerian Civil Aviation Authority (NCAA) yesterday explained how the recent industry figures were gathered to dispel alleged shortfall in revenue estimates.The apex regulatory body said its figures were verifiable, as the system and processes of generating and gathering data were in line with best practices and international standards. “No amount of push and shove can cast aspersion on our figures.”
Some stakeholders recently faulted the new revenue estimates released by the NCAA, alleging a shortfall in excess of N400 billion in the last two years, with attendant shortchange of the mandatory five per cent charges that goes to the five regulatory agencies from ticket sales. Following the disparities in figures released earlier in the year, the agency recently presented harmonised figures.
Director of NCAA’s Consumers Protection Unit, Dr. Adamu Abdullahi, at a breakfast meeting organised by the Aviation Safety Round Table Initiative (ASRTI) in Lagos, disclosed, a total of 10.7 million local and 4.3 million international passengers were recorded in 2016. He said 2017 pooled a total of 10.1 million local and four million international passengers.
Consequently, local routes earned N79.5 billion while international routes earned N343 billion in 2016. For 2017, it was N93.6 billion for local and N411.6 billion for international ticket sales. In 2016, a total of N422.4 billion was earned in ticket sales, while in 2017, N505 billion was recorded.
NCAA clarified that the process of generating data was as stipulated in the Nigerian Civil Aviation Regulations (Nig.CARs) 2015 Part 18.12.5, which states that “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 manifests, air waybills, load sheets, clients’ service invoices and other documents necessary for accurate billing within forty-eight (48) hours after each flight.”
Spokesperson of the NCAA, Sam Adurogboye, said that as part of the billing requirements, the agency “collects billable data from airlines, photocopy of flown coupons and Post Departure Manifest (PDM) of international flight operations.” According to him, all these are International Air Transport Association (IATA) documents which NCAA cannot influence.The flown coupons contain specific information required by IATA before billings are done and issued. These are ticket number, name of passenger, ticket sales charge (NG) and so on.
In similar vein, the prerequisite NCAA five per cent TSC paid by passengers is indicated on the ticket. “These data are warehoused by NCAA and can be verified,” he said.The domestic billing process requires the airline to submit to the Authority its PDM immediately after every flight departure.“It is from the filed fares that five per cent TSC is calculated. The automated integrated system therefore ensures authenticity between NCAA server and airlines.
“Similarly, the process of billing five per cent Cargo Sales Charge (CSC) requires the airline to submit airway bill in accordance to the Nig.CARs. The weight and rate stated on the airway bill is used in the calculation of the CSC.“Furthermore, the Authority authenticates the automated data output with the hard copy data submitted by the airlines. This serves as verification and determination of the actual flown passengers,” Adurogboye said.
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