The repayment arrangement between Nigerian airlines and the Nigeria Civil Aviation Authority (NCAA) over outstanding Ticket Sales Charges (TSC) was disrupted by a labour dispute, United Nigeria Airlines Chairman Prof. Obiora Okonkwo has said.
Okonkwo, who also serves as spokesperson for the Airline Operators of Nigeria (AON), said domestic airlines had previously been meeting their financial obligations to the aviation regulator before rising aviation fuel prices and other operational pressures intensified from February.
The airlines subsequently appealed to the Federal Government for relief amid mounting financial challenges, leading President Bola Tinubu to approve a 30 per cent waiver, according to Okonkwo.
He said subsequent meetings involving airline operators, the NCAA and the Ministry of Aviation produced an organised repayment arrangement for outstanding liabilities. Under the arrangement, airlines were expected to pay 10 per cent of their legacy debts within an agreed period, while the balance would be settled through instalments.
However, Okonkwo said the arrangement was later affected by a labour dispute, contributing to the renewed controversy surrounding airlines’ remittances of the five per cent TSC.
The United Nigeria Airlines chairman rejected the characterisation of domestic carriers as serially non-compliant, arguing that discussions about outstanding liabilities often fail to take into account the substantial amounts already remitted by airlines.
According to him, the financial difficulties facing operators should be considered within the wider context of rising operating costs and the challenges confronting the domestic aviation sector.
Okonkwo also maintained that the campaign for the removal of the TSC should continue, arguing that the charge places an additional burden on airlines at a time when operators are already dealing with high operating expenses.
The dispute over TSC remittances has continued to highlight the financial pressures facing Nigerian airlines, as operators seek measures they believe could reduce costs and improve the sustainability of domestic air travel.
