Airlines Operators Question N15bn Debt Claim by NCAA

Chinedu Eze

Domestic operators under the umbrella of Airlines Operators of Nigeria (OAN) have denied N15 billion indebtedness to the Nigerian Civil Aviation Authority (NCAA).

Rising from an emergency meeting, the operators said in very strong terms that they are not owing the NCAA N15 billion as it claimed.

“We are still at loss as to why the NCAA made such a phantom claim publicly. The recently published breakdown in the media of what airlines owe of each passenger is completely wrong and false. Airlines don’t pay monthly fixed rate. The rate is a percentage of the fare paid. Secondly, how can an airline like Arik Air with 27 airplanes have a fixed monthly remittance rate of N61, 477, 779.69 and Air Peace with an average of five airplanes to pay N109, 862, 633.84 monthly? At what rate were these figures calculated to get a fixed amount?” AON said.

The operators noted that even from “the phantom breakdown mentioned 80 percent of the bills are from airlines that are either out of operation or in receivership with the government today. Moreover, a couple of the airlines that make up the phantom numbers are not Nigerian registered airlines such as Cronos and Africa World Airlines (AWA).”

AON said it was obvious that the “phantom” numbers could not add up, noting that the airlines are working and struggling to stay afloat in a harsh terrain and made to bear the sin of others, thus urging NCAA to come out with a true picture of things.

“AON therefore challenged the NCAA to come open with the breakdown of how it arrived at the phantom bill of N15 billion and publish the details of the airlines and what they owe. Perhaps doing so will erase the negative impression being fed the public as it will reveal that the money they claim airlines owe are owed by airlines that have now either been taken over by government (AMCON) or is a historic debt owed majorly by airlines that have gone out of business over the years due to the harsh environment, unfriendly polices and the continued burden of multiple charges or falsified account that can’t stand the test of an external audit or a law court trial.

But contrary to AON statement, THISDAY investigations disclosed that at the time Arik Air was operating about 100 flights daily and had 28 aircraft in its fleet, it used to pay about N60 million monthly as five percent ticket and cargo sales charge. THISDAY can also confirm that Air Peace started operation with seven aircraft and increased to 10 after one year of operation and currently, the airline has about 12 aircraft in its fleet.

However, AON explained that airlines that currently exist do not owe a fraction of what is being claimed by NCAA “if put to test by a world renowned and international audit firm.”

“Moreover, businesses all over the world, including Nigeria as a country, do owe. Owing is not unprecedented anywhere in the world. What matters is that whatever is owed is being serviced. Most of the current and active 29 AOC operating airlines are servicing their debts as agreed between themselves and the relevant agencies after the usual reconciliations,” AON said.

It stated that the airlines were not asking for the cancelation or suspension of the five percent charge of the passengers but are asking for suspension of the automation till “we have clarity of the cloudiness on what the five percent should be applied to.”

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