The current imbroglio in the Nigerian aviation industry arising from automation of payment systems has pitted the Nigerian Civil Aviation Authority (NCAA) against the domestic airlines under the aegis of Airline Operators of Nigeria (AON).
The dispute arose from the deadline issued to the eight domestic airlines to automate their remittance of the statutory five per cent Ticket Sales Charge/Cargo Sales Charge (TSC/CSC) to the regulatory authority which ended on March 31.
While the NCAA insists on the immediate compliance with the directive, the airlines want it to be suspended until the parameters which constitute the charges are clearly and properly defined.
The decision to collect the charges on behalf of the NCAA was a suggestion by the airlines operators in 2001.
It was unanimously adopted and an agreement signed by all parties after series of meetings and exchange of correspondences; it was subsequently enshrined in all the subsisting regulations.
However, the remittances have become a thorny issue between both parties due to lack of transparency and flagrant refusal of some of the airlines to put the money back into the coffers of the agency.
Thus, the NCAA had on December 6, 2016 mandated the airlines to automate the process by January  1, 2017.
Mr Sam Adurogboye, the General Manager, Public Relations of NCAA, says there is a move to put an end to airlines indebtedness to the agency which currently stands at over N15 billion.
He notes that the Aviation Revenue Automation Project (ARAP) system is being introduced to ensure transparency, accurate billing and prompt payments of charges due from the airlines to the NCAA.
According to him, this is in line with the Nigerian Civil Aviation Regulations (NCARs) 2015, Vol. 2, Part 18.12.5.
“The NCARs 2015 states thus: that all domestic and international airlines operating in Nigeria should forward to the authority through an electronic platform provided by the authority, all relevant documents such as flown coupons, passenger or cargo manifest, air way bills, load sheets, clients’ service invoices and other documents necessary for accurate billing within 48 hours after each flight’’.
Adurogboye says it was pertinent to point out that this directive has the full backing of the Federal Government for full implementation and strict compliance.
However, following series of meetings between the airline operators and the Director-General of NCAA, Capt. Muhtar Usman, the deadline was extended to March 31, to give them more time to comply with the directive.
With the expiration of the deadline, the NCAA issued a final compliance notice to the airlines, warning that “failure to comply will be viewed seriously as the authority will be forced to invoke the necessary provisions of the law against defaulting airline’’.
Reacting to the ultimatum, the AON President, Capt. Nogie Meggisson, says it is done in “bad faith’’ because the issues surrounding it have yet to be resolved.
“AON has no problem with the NCAA going ahead to automate the collection and remittance of the said charges.
“However, the NCAA needs to give clarification on what constitutes the five per cent Ticket and Cargo Sales Charge.
“The five per cent TSC is only applicable on base fare in compliance with industry practice and as currently  applicable to international carriers operating out of Nigeria,’’ Meggisson said.
He also accuses the NCAA of discriminating against the domestic airlines because foreign airlines are not mandated to join the same automation platform.
“It is apparent that NCAA is preying on domestic airlines which they see as an easy target, a cash cow and for cheap publicity.
“They are over regulating domestic operators and pushing domestic airlines to the edge of insolvency and bankruptcy.
“It is this kind of policy that has reduced the lifespan of Nigerian airlines and has consumed over 25 airlines in the last 30 years since deregulation in 1982,’’ he says.
According to him, in spite of the tax burden on airlines, the infrastructure and service level continue to deteriorate across all facets of the industry under the same authority.
He adds that while airlines in other West African countries operate 24 hours, Nigerian carriers are subjected to daylight operations only till 6.30 p.m. in most our airports.
Responding to Meggisson’s call for the suspension of the payment system, Adurogboye insists that the airlines must comply with the directive or risk sanctions by NCAA.
He says it is pertinent to point out that the NCAA is an autonomous regulatory agency which continues to remain solvent by cost recovery in line with ICAO Standard and Recommended Practices (SARPs).
Adurogboye says this could only be derived from the five per cent ticket and cargo sales charges statutorily.
He notes that the directive to automate covers both domestic and foreign airlines, adding that the foreign airlines have complied fully by remitting their collections through the International Air Transport Association/Billing Settlement Plan (IATA/BSP).
However, some industry watchers have appealed to both parties to amicably resolve the issue in the interest of the sector, especially as a result of its pivotal role in the socio-economic development of the country.

Asowata is of the News Agency of Nigeria (NAN)

Solomon  Asowata