As stakeholders harp on integrity in sector
The Nigerian Civil Aviation Authority (NCAA) has defended the
mandatory five per cent Ticket Sales Charge (TSC) it collects through
the operators, saying it has no connection with the financial distress
faced by some domestic airlines.
NCAA, which is the apex regulatory authority in the sector, said
contrary to claims by operators, the passengers rather than airlines are
charged and must be sustained as mandated by the law.
In a related development, stakeholders have identified the dearth of
integrity and transparency as one of the fundamental reasons the sector
is in dire straits.
The concerned parties, made up of operators, regulators, consultants and keen observers, at an aviation integrity summit organised by Aviation Monitor Limited in Lagos, levied sharp practices against some operators and regulator that have further set the air travel business on the back foot.
Director General of the NCAA, Capt. Muhtar Usman, noted that the
operational guidelines were clear on the charges and in fact entrusts in
the hands of operators to collect the charges for the sustenance of the
operating environment.
Usman noted that section 12 (1) of the Civil Aviation Act 2006 says
that there shall continue to be a five per cent air ticket contract,
charter and cargo sales charge to be collected by the airlines and paid
over to the Authority.
“Where lies our business integrity if we cannot give back what is
entrusted into our hands to the owner. Even on request, we shy away from
our responsibility of paying back the entrusted money to the
appropriate owner,” he said.
It would be recalled that calls have been made lately on the need to
reduce multiple charges on the operators, especially in the face of huge
indebtedness to NCAA and other regulatory agencies.
The DG, however, said it was unfortunate that some of the operators
could not ddistinguish between operational cost and profit margin.
“A good businessman endeavours to separate the profit margin with the
operational cost. And if we were doing this, we would have been able to
separate the five per cent Service Charge from the real ticket sales
and draw our operational/profit margin from the actual.
“NCAA has reports that some airlines have tagged the five per cent
Ticket Sales Charge (TSC) and five per cent Cargo Sales Charge (CSC) as a
tax or levy and as such has become a drain on their earnings.
“This is a misrepresentation of the fact. Passengers, as contained in
the ticket, pay the TSC. The airlines role is to collect and remit same
to the regulatory authority,” he said.
Usman said instead of grumble over charges, operators in the aviation
industry should rather take advantage of the e-payment system to lessen
the burden remitting to the appropriate authority.
“Let me state that the TSC and CSC are collected at source from
passengers by airlines on behalf of the Federal Government, to enable
all aviation agencies to tackle safety critical issues as they arise to
engender safe, secure and efficient air transportation and allied
services for the overall benefits of all stakeholders.
Capt. Muhtar Usman DG NCAA
“I urge airlines/service providers to be opened to suggestions and
use the feedback mechanism to grow their business. They must be willing
to take responsibility for their actions especially when there is a
system default in their operations,” he said.
Director of Legal Services, Nigerian Airspace Management Agency
(NAMA), Anastasia Gbem, stressed that it was important for all parties
concerned to work within the framework of the rules and regulations.
Gbem said taking the five per cent ticket sales that belongs to
government agency and putting it in your business is bad practice.
“There is so much impunity in the system because of lack of
integrity. So, attitudes to business must improve for industry to grow,”
she said.
Chairman of Airline Operators of Nigeria (AON), Capt. Nogie Megisson,
insisted there was no way the domestic airlines in Nigeria would
survive with the existence of too many charges from both within and
outside the sector, requesting that airlines should be involved in
policy making processes from design point.
Apparently in agreement with Meggison, President of Aviation Round
Table, Gbenga Olowo, added that to achieve integrity in the system,
there is a need for an upward review of airline fares to a more
appropriate fare, considering the rate of inflation over the years.
Chairman of National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Segun Musa, on his part appealed to authorities to avoid giving undue advantages to some operators in the cargo sub-sector, which he said, encourages deliberate breach of standards by others who feel there is no integrity in the system.
Musa queried the restriction of number of licensed ground handling
companies in Nigeria to two, calling for a comprehensive transport
policy in the country in order to address integrity issues.
Chief Executive Officer of Aviation Monitor Limited, Albinus Chiedu,
said the summit was convened to evaluate the level of integrity in
business transactions, interactions, agreements and contracts
implementation as well as respect for laws and morality in various
dealings that occur in Nigeria’s aviation industry.
Sources:-http://guardian.ng
