"No Pay, No Service": NCAA Moves to Task Air Peace, Max, Dana, Others to Repay N24 Billion Debt

"No Pay, No Service": NCAA Moves to Task Air Peace, Max, Dana, Others to Repay N24 Billion Debt

  • The Nigeria Civil Aviation Authority (NCAA) is on an aggressive push to recover N24 billion debt owed by airlines
  • The new Director General of the NCAA said the agency is implementing a ‘no, pay no service order.
  • The DG said one of the airline’s operating licenses will not be renewed unless it pays its debt

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The Nigeria Civil Aviation Authority (NCAA) is setting up a task force to recover debts owed by airlines, saying that it was already enforcing a ‘no pay, no service’ plan for the airlines.

According to reports, the airlines are indebted to the agency for N24 billion, accruals from the five percent Ticket Sales Charge and Cargo Sales Charge (TSC/CSC) from 2022.

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Air Peace, Azman Air, NCAA, FAAN
NCAA moves to recover N24 billion debt from local airlines Credit: @airpeace
Source: UGC

Airlines adamant as NCCA moves to stop their operations

The debts have not been reduced despite implementing the ‘no, no service’ plan. The debts also include those owed by airlines that have ceased operations.

The Acting Director General of NCAA, Chris Najomo, disclosed this in Lagos and unveiled his plans to transform the industry.

His agenda involves prompt and simple licensing/certification, improved surveillance, consumer protection, staff welfare, digital transformation, intensified revenue drive, Universal Safety Audit, and ISO 9001 certification.

Daily Trust reports that Najomo harped on revenue drive regarding the directive by the Nigerian government for the NCCA to remit 50% of their revenue to the Nigerian government.

The development means that the NCAA, which is 100% self-funded, will embark on a severe revenue drive to meet its obligations, including the 50% revenue remittance to the Nigerian government.

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Najomo said:

“We are intensifying our cost recovery drive. The federal government now takes 50 percent of the money. Most airlines owe us; we have told them to pay up.”

FG refuses Azman Air's operating license over $1.2 billion debt

He indicated Azman Air’s Air Operator’s Certificate (AOC) may not be renewed unless it clears its debts.

The agency suspended Asman Air’s license over a N1.2 billion debt in Spetement 2022.

The new DG said the NCAA was working on revenue collection action plans before the auditors from the International Civil Aviation Organisation (ICAO) returned for a meeting following the appalling outing of Nigeria in the last safety audit.

Najomo said the agency is collaborating with the Federal Authority of Nigeria (FAAN) and other stakeholders for an excellent outing during the ICAO audit programme on March 22, 2024.

FG says Air Peace, Arik, and others to start paying compensation

Legit.ng reported that The Minister of Aviation, Festus Keyamo, has stated that domestic airlines will soon begin to compensate passengers for canceled or delayed flights.

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The minister said the Nigerian Government will start pressing airlines to compensate passengers as stated by the Nigerian Civil Aviation Authority (NCAA) Act, TheCable report said.

In June this year, the NCAA said Air Peace delayed domestic flights in the first three months of 2023.

Source: Legit.ng

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Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng