Airline operators reject NCAA debt claims, seek review of ticket charges

The Airline Operators of Nigeria (AON) has rejected claims that domestic airlines owe the Nigerian Civil Aviation Authority (NCAA) outstanding charges for regulatory services.

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The association said airlines operating in the country pay for all regulatory services upfront and accused the NCAA of creating a misleading impression about operators’ financial obligations.

The disagreement follows the NCAA’s recent “no-pay-no-service” directive issued against 11 domestic airlines over alleged outstanding statutory remittances.

PREMIUM TIMES earlier reported that an internal memo dated 22 May, signed by the NCAA’s Director of Finance and Accounts, Olufemi Odukoya, instructed all directorates and regional offices to suspend services to the affected airlines pending financial clearance from the Directorate of Finance and Accounts.

The airlines affected by the directive included Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, Rano Air, NG Eagle, ValueJet, Overland Airways, Umza Air and Caverton Helicopters.

The move initially raised concerns within the aviation industry over possible disruptions to airline operations as domestic carriers continue to grapple with rising Jet A1 aviation fuel prices, foreign exchange pressures and other operational challenges.

However, barely two days later, the NCAA announced the temporary suspension of the directive following consultations with stakeholders and concerns over the impact of rising operating costs on airline operations.

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The regulator clarified at the time that the suspension did not amount to a waiver or cancellation of the outstanding debts.

Reacting in a statement issued on Monday, the AON maintained that airlines do not receive NCAA regulatory services without payment.

“The Airline Operators of Nigeria wishes to set the record straight in response to recent media publications credited to the Nigeria Civil Aviation Authority, which portrayed member airlines as being indebted to the regulatory agency for services rendered to operators,” the association said.

It added that the reports were misleading and amounted to an attempt to pressure operators outside the established regulatory framework.

According to the association, services such as aircraft inspections, crew licence validation and documentation renewals are paid for before they are provided.

“In practice, no domestic airline in Nigeria receives NCAA regulatory services without first making full payment of invoices issued to it by the NCAA,” the statement added.

The operators clarified that the issue relates mainly to the five per cent Ticket Sales Charge (TSC), which airlines collect on behalf of the NCAA from passengers.

The association described the charge as a tax imposed on passengers rather than payment for services rendered directly to airlines.

AON explained that airlines had previously operated dedicated accounts for remitting the charges but noted that rising operational costs and economic pressures had made remittances more difficult.

The association linked the situation to increasing aviation fuel prices, foreign exchange challenges and wider global economic disruptions.

It said domestic operators had earlier appealed to the federal government through the Minister of Aviation and Aerospace Development, Festus Keyamo, for temporary relief from some statutory charges.

According to the operators, President Bola Tinubu approved a 30 per cent concession while discussions on other relief measures continue.

ALSO READ: NCAA suspends ‘no-pay, no-service’ directive against airlines over outstanding charges

The association also called for amendments to the Civil Aviation Act to allow the NCAA collect its charges directly from passengers or other designated channels rather than through airlines.

“In view of the above, the AON calls on the Federal Government to urgently amend the Civil Aviation Act to empower the NCAA to collect whatever appropriate fees and charges are due to it directly from passengers or whoever else, without routing such through the domestic airlines,” the statement said.

The operators argued that airlines currently bear additional banking and transaction costs while acting as collection agents for the regulator.

AON further warned that the financial burden on domestic carriers has worsened due to multiple taxes, foreign exchange pressures and the rising cost of Jet A1 aviation fuel.

The association stressed that the aviation sector remains critical to economic growth and called for urgent policy support to sustain airline operations in the country.