NCAA directs airlines to pay up debts within 60 days


The Nigerian Civil Aviation Authority (NCAA) has directed all Airlines (Domestic & Charter) operating in the country to forward in full unremitted funds accruable to the Authority without further delay.


It also gives the airlines, another 60 day ultimatum to pay their old debt.


This directive was handed down by the   Director General of the NCAA, Capt. PMuhtar Usman  at a meeting with the operators on non-remittance of 5% Ticket, Cargo and Charter Sales Charges [TSA/TCA] held at the Authority’s Headquarters Annex Wednesday.


According to the DG, the directive is with regards to the 5% TSA/TCA collected at source from the air passengers by the airlines on behalf of the Federal Government of Nigeria.



These sales charges are to enable all aviation agencies carry out their responsibilities of providing safe, secure and efficient regulatory  services for the overall benefits of all aviation stakeholders.



According to him, ‘It is imperative that all unremitted funds must be forwarded in full to the NCAA immediately. The airlines must desist from using these funds ‘’held in trust’’;


That the ongoing 5% ticket/Cargo/Charter/Sales Charges automation of payments which offers real-time transparent transactions must be completed within two months as this will remove endless reconciliation of data and reduce high debt profile of Airlines to NCAA;



“Reconciliation of all outstanding debts must be completed within sixty(60) days; the 5% Ticket/ Cargo/ Sales Charges must be On Gross Ticket excluding VAT and Passenger Service Charge(PSC) only; all airlines must provide to the Authority the breakdown of the recently introduced ‘’Taxes+Fees’’ component on all passenger tickets which include the amount due to each Government Agency, i.e FAAN-Passenger Service Charge (PSC); Federal Inland Revenue Services (FIRS)-5% VAT; and NCAA 5% Ticket Sales Charges (TSC).



“Any add-on charge, surcharge (i.e. fuel surcharges-(YQ, etc) or any other miscellaneous added on passenger ticket must be approved by the Authority before applying these charges on passenger tickets”, he said.



After exhaustive deliberations between NCAA team led by the DG on one hand and Operators by Capt Chimara O. Imediegwu of First nation on the other, agreement was reached by all parties on all the issues raised.



The Operators however asked for adjournment till next week Wednesday the 27th of April, 2016 to enable the Airlines hold further consultations on the Time Line and its implementations.



In attendance were  the top  officials from  DANA Airlines, Azman Airlines, Medview Airlines, Chanchangi, Overland Airways etc



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