Arik Air has joined the automation platform of the revenue collection system of the Nigeria Civil Aviation Authority (NCAA), meant to deduct at source the five per cent ticket and cargo sales charges accruing to the agency.
Â At the presentation of the signed automation agreement at the NCAA headquarters, the Director General, NCAA, Captain Muhtar Usman said the deduction was in line with the provision of the Nigeria Civil Aviation Regulations (NCARs).
Captain Muhtar while congratulating Arik Air for being fully compliant with the regulations said the automation system ensures transparency and urged other airlines yet to do so to urgently reconsider their decision.
He observed that everyone expects efficiency from the regulatory Authority and thus it was necessary to do what was expected of them to help the authority succeed.
The Director General also explained that the five per cent ticket and cargo sales charges were shared between five agencies namely, the NCAA, the Nigeria Airspace Management Agency (NAMA) the Nigeria College of Aviation Technology, Zaria NCAT, the Nigeria Meteorological Agency (NIMET) and the Accident Investigation Bureau (AIB), adding that NCAA does not take money from government but generates its revenue internally from these charges.
Usman said the step taken by Arik to join the platform was a sign of a continuous working relationship, stressing that there must be synergy between the operators and the regulatory agency.
â€œComing on the platform means transparency, more efficiency, less time spent on reconciliation. We want to use this opportunity to encourage others that are not fully in complaint to do so; we do not like to force people to come and do so.
â€œThe five per cent charges are meant to take care of five agencies, NCAA, NAMA, AIB, NCAT and NIMET. Of the five agencies, the Civil Aviation Authority demands only the five per cent as its internally generated revenue and does not take money from the federal government, â€œWe depend on this to run this organisation. I want to congratulate Arik for this bold stepâ€, he added.
Responding, Arik Air Chief Executive Officer, Captain Roy IIegbodu said Arik Air was committed to associating with the future and believed that this was a step in the right direction.
He noted that automation was all about technology and the airline supports technology and would continue to join all parties in the industry to develop technology.
â€œOne of the things I would like to say is that the team that worked with us was very supportive, they worked through last year and this year, it is not an easy task, automation itself is complex. We will continue to do our utmost to support the growth of aviation in Nigeriaâ€.
Also, the Director, Air Transport Regulation NCAA, retired group captain Edem Oyo-Ita said Arik had proven that it is sincere in its operations and urged the airline to also look at the reduction in fares with the recent removal of five per cent VAT on shared transportation by the federal government.