Aviation Unions Say Airlines’ Failure To Remit Agencies’ 5% Ticket Sales Charge Threatens Safety

The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) has expressed grave concern over the reported failure of many airlines operating in Nigeria to remit the statutory 5% Ticket Sales Charge (TSC) collected on behalf of the Nigerian Civil Aviation Authority (NCAA) and other aviation agencies, for the purpose of maintaining safe air transportation in the country, stating that it threatens safety.

A letter jointly signed by Comrade Frances Akinjole, ATSSSAN General Secretary and Comrade Odinaka Igbokwe, Deputy General Secretary of National Union of Air Transport Employees (NUATE) and addressed to the Chairman of Airline Operators of Nigeria (AON), says “the unions are aware that the accumulation of these outstanding remittances over the past months, years has run into several billions of naira and has adversely affected the revenue profile of the agencies. This is thereby creating avoidable financial constraints that negatively impact the effective discharge of their various statutory responsibilities and the smooth operation of the aviation sector in general. This is safety compromised!

We wish to remind all that the 5% Ticket Sales Charge (TSC) is a statutory obligation established by law, with the necessary backing of International Civil Aviation Organization (ICAO) instruments, and not a discretionary payment.

International Civil Aviation Organization (ICAO) Doc 9734 – Safety Oversight Manual, Parts A and B, provide a clear need for a sustainable and stable source of financing for the agencies. The most important of these sources is TSC, which air passengers pay for in their tickets and which is collected on behalf of the aviation agencies by these airlines. Accordingly, airlines are required to remit these funds promptly and in full compliance with the provisions of the Civil Aviation Act and other applicable regulations.

The continued non-remittance of these statutory funds is grossly unacceptable because it undermines the financial stability of the agencies whose statutory functions depend on these remittances. It must be appreciated that TSC is not a profit, but resources meant to facilitate safe air. Hence, the agencies are mere cost recovery organizations.

In view of the foregoing, the aviation unions hereby call on the management of airlines to remit, within the next fourteen (14) days, all outstanding Ticket Sales Charges in full compliance with their obligations, without further delay.

Kindly note that failure to comply with this demand within the stipulated period will leave the Aviation Unions with no alternative but to employ every means necessary to ensure that the entire Nigerian aviation sector does not go aground because of air safety issues necessitated by the actions and inactions of the entities stifling the agencies of their required operational funds.

We trust that affected airlines will treat this matter with the promptness it deserves and take the necessary steps to avert avoidable industrial comatose. Please accept the assurances of our highest regards.”