{"id":12045,"date":"2017-04-05T14:34:33","date_gmt":"2017-04-05T13:34:33","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=12045"},"modified":"2017-04-05T14:34:33","modified_gmt":"2017-04-05T13:34:33","slug":"no-going-back-on-automation-ncaa-airlines-indebtedness-to-agency-hits-n15bn","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/no-going-back-on-automation-ncaa-airlines-indebtedness-to-agency-hits-n15bn\/","title":{"rendered":"No Going Back on Automation \u2013 NCAA \u2026Airlines\u2019 indebtedness to Agency hits N15bn"},"content":{"rendered":"

The Nigerian Civil Aviation Authority (NCAA) has stated unequivocally that there is no going back on its earlier directive on automation of remittance of the 5% ticket and cargo sales charges.<\/p>\n

To this end NCAA said any airline that fails to comply will be viewed seriously.<\/p>\n

In a statement to nationalwire<\/em>, agency said \u201cFor the purpose of clarity, the Regulatory Authority wishes to state that the 5% ticket and cargo sales charges are revenue accruable to the aviation agencies through NCAA. This is contained in Part V Section 12(1) of the Civil Aviation Act 2006.<\/p>\n

\u201cThis section merely mandates the Airlines to collect the charges paid by the passengers on behalf of NCAA and remit same appropriately and in real time which have not been so.<\/p>\n

\u201cThere is no ambiguity with regard to the components of the billing of the charges, Part 18.12.4. of the Nigeria Civil Aviation Regulations (Nig.CARs 2015) clearly provides that \u201cthe 5% air ticket sales charge shall be based on the total cost of travel paid by passengers to the airline. This shall be the cost of ticket inclusive of fuel surcharge or any other charge added to the total cost of travel by the airline exclusive of government value added tax or any other tax that may be imposed by government from time to time.\u201d<\/p>\n

\u201cTherefore for the avoidance of doubt, all airline operators should be guided by Part 18.12.5.which says \u201call 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\u2019 service invoices and other documents necessary for accurate billing within 48 hours after each flight.\u201d<\/p>\n

\u201cIn realisation of this, the Federal Government of Nigeria had approved the introduction of Aviation Revenue Automation Project (ARAP) for revenue collection to aid data integrity, transparency, transaction accountability, controls and revenue assurance to the authority in 2011.This is at no cost to the operators.<\/p>\n

\u201cTo facilitate easy and seamless remittance therefore, Part 18.12.6. says \u201call Nigerian licensed airlines shall join the IATA\/BSP for the purpose of remittance of 5% sales charges, and shall execute a contract to that effect.\u201d<\/p>\n

\u201cHowever, the domestic airlines have not joined the International Air Transport Association\/Billing Settlement Plan (IATA\/BSP).Therefore; the Aviation Revenue Automation Projects (ARAP) is an alternate means of compliance to smooth remittance provided by the Authority in line with Federal Government\u2019s directive.<\/p>

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\u201cIt is pertinent to point out that NCAA is an autonomous regulatory agency therefore it continues to remain solvent by cost recovery in line with ICAO Standard and Recommended Practices (SARPs).This can only be derived from the 5% ticket and cargo sales charges statutorily.<\/p>\n

\u201cThis directive to automate covers both domestic and foreign airlines. However; the foreign airlines have complied fully by remitting their collections through the IATA\/BSP.<\/p>\n

\u201cOn the call for review, this is definitely out of the purview of the airlines. Any review should be at the behest of the NCAA using Part 18.12.3. which states \u201cthe Authority may review the 5% air ticket, contract, charter and cargo sales charge from time to time in consultation with stakeholders.\u201d<\/p>\n

\u201cWe therefore wish to state that despite the astronomical cost of operation the Authority has never carried out a review since inception. This is to encourage sustained and increased patronage for the air transport industry.<\/p>\n

It will be recalled that the decision to collect the charges was a suggestion by the airlines operators in 2001. It was unanimously adopted, agreement signed by all parties after series of meetings and exchange of correspondences and was subsequently enshrined in all the subsisting regulations.<\/p>\n

 <\/p>\n

\u00a0<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The Nigerian Civil Aviation Authority (NCAA) has stated unequivocally that there is no going back on its earlier directive on automation of remittance of the 5% ticket and cargo sales charges. To this end NCAA said any airline that fails to comply will be viewed seriously. 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