Airline operators in Nigeria owes $6.9m (N19.4b) on TSC says Minister of Aviation
Mshelia who gave his submission today at a three day public hearing hosted by the Senate Committee on Aviation to amend six (6) executive bills of aviation agencies, waded into the matter of the 5%ticket sales charges. According to him, it was bothersome that airlines would take money on behalf of government and refuse to remit it when those funds were paid for already in cash.
He explained,”I am a member of the Airline Operators of Nigeria (AON) but I have a different opinion especially on the 5%Ticket Sales/ Cargo Sales Charges. Why would I collect money on behalf of government and not remit it, especially as I collect before the flight. “Except it is some form of online transfer that is difficult monies can be remitted on or before 90 days, give me 90 day and I’d remit if I am owing. Some of us are remitting this 5% charges and we’ve been doing so for years.
Captain Mshelia also canvassed deliberate policies to develop civil aviation in the country explaining that only then would the industry grow. He referred to the United States which discovered on time and as early as 1962 and developed them.
”General Aviation policies must be deliberately developed but as a charter operator with small operations, why must I use the same over 62 manuals that big commercial airlines use? The procedures should not be same and the Ministry and the Nigerian Civil Aviation Authority should look into this.”
Also speaking on the 5% TSC, former Director General of the NCAA, Dr. Harold Demuren explained the history of the charge stating that it was initiated as far back as 1989 and was done for good and specific reasons. Dr. Demuren who maintained that the charges should not be reviewed downwards any further said it was initially canvassed for 10% when it was Federal Civil Aviation Authority (FAA).
He said, “Federal government built all these airports and wanted return on investment and was advised by the Federal Aviation Administration (FAA) to do what was done in America to enable them maintain these infrastructure by introducing these charges. “The TSC was introduced because of NCAA and NAMA but now others have been added which is all good since they are aviation but I beg you, do not review the percentage shared to the NCAA downwards as these monies help in training engineers, inspectors and other critical areas,” he said.
