Airline Operators Question N15bn Debt Claim by NCAA

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.