NCAA has suspended its enforcement order as airlines face mounting pressure from rising fuel costs and operational challenges.
- +NCAA Puts ‘No Pay, No Service’ Order On Hold For Indebted Airlines
The Nigerian Civil Aviation Authority has suspended its “no pay, no service” directive against airlines owing statutory charges, saying it wants to support stability in the aviation sector.
The Nigerian Civil Aviation Authority has suspended its “no pay, no service” directive against airlines owing statutory charges, saying it wants to support stability in the aviation sector.
The Authority said the decision followed a review of conditions in the industry, including the rising cost of aviation fuel and its effect on airline operations. The suspension affects domestic carriers earlier placed on a sanction list over unpaid obligations.
The NCAA said the move does not cancel the debts owed by the airlines. It said operators are still expected to pay all outstanding charges.
In a statement, the Director-General of the NCAA, Chris Najomo, said President Bola Tinubu had earlier approved a 30 per cent reduction on outstanding fees owed by domestic airlines to aviation agencies.
“This relief, as contained in a statement by the Honourable Minister of Aviation and Aerospace Development, is part of Federal Government efforts to cushion the impact of the high cost of Jet A1 fuel, stabilise the aviation industry and safeguard airline operations,” Najomo said.
He added that the Authority would continue discussions with airlines on repayment plans while allowing operations to continue.
Najomo also explained that the five per cent Ticket and Cargo Sales Charge is a legal levy collected by airlines during ticket and cargo sales on behalf of the aviation sector.
“It is not a part of operating profit or revenue for the collecting airline, and must therefore not be treated as such,” he said.
The NCAA said the money is shared among aviation agencies and service providers responsible for safety and regulatory oversight.
The regulator also said it depends on these remittances to carry out its daily operations because it does not receive direct federal government funding for routine activities.
Najomo said the temporary suspension was aimed at keeping the sector running smoothly while talks continue on the settlement of outstanding debts.
The airlines earlier affected by the sanction include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, ValueJet and other domestic operators.
