NCAA threatens airlines, issues 30 day ultimatum

By Post Nigeria July 31, 2015 07:00

NCAA threatens airlines, issues 30 day ultimatum

A 30 day ultimatum has been given to defaulting airlines failing to remit funds collected from passengers and cargo owners to appropriate authorities or expect the heavy brunt of the law to fall on them.

This ultimatum has been issued by the Nigerian Civil Aviation Authority, NCAA, in accordance with a Federal Government directive on the recovery of public debt.

This was contained in a statement by the authority’s spokesperson Fan Ndubuoke, asserting that some airlines do not remit the 5% Ticket Sales Charge, TSC, collected from passengers and Cargo Sales Charge, CSC, collected from cargo owners to the Government.

NCAA urged airlines to comply with the directive, adding that defaulting airlines would be penalized in heavily.

    “Failure to comply with the directive of remittance of the outstanding payments; the Authority shall enforce the provisions of section 27(3) of the Civil Aviation Act.”

Furthermore NCAA said measures contained therein would be taken to enforce the collection of debt, in addition, names of chronic debtors Airlines, promoters and amount owned would be published in at least five national dailies.

    “The names of the promoters of these airlines, directors and other related parties will be included in the publication upon the expiration of this ultimatum,” he added.

The statement further read: “The Nigerian Civil Aviation Authority wishes to reiterate to the Airlines that section 12(1) of the Civil Aviation Act.2006 provides that “there shall continue to be a 5% air ticket contract, charter and cargo sales charge to be collected by the Airlines and paid over to the Authority.”

NCAA also stressed that the 5% Ticket /Cargo Sales Charge represents charges collected at source from the travelling public by Airlines on behalf of the Civil Aviation Agencies.

    “However, its non remittance as at when due is tantamount to a breach of trust and a violation of the above provision.

    “Therefore, the Authority is issuing the ultimatum to the operators who have collected but failed to remit same to the Authority to do that within 30 days.”

While explaining the decision to sanction defaulting airlines, Ndubuoke clarified that offending Airlines had failed to offset the accumulated debt despite several reconciliation meetings, visits and reminders.

In addition, the statement added, NCAA will continue to implement the “no payment no service” financial policy to ensure complete clearance of the indebtedness to the Authority.