Aviation Unions Threaten Strike Over Unpaid Ticket Levies

Nigeria’s aviation sector may be heading for a fresh industrial action as two major aviation unions have issued a 14-day ultimatum to airline operators over the alleged non-remittance of the statutory five per cent ticket sales charge to aviation agencies.

In a joint letter to the Airline Operators of Nigeria, the unions say the outstanding remittances have accumulated into several billions of naira, creating funding challenges for agencies and posing risks to aviation safety oversight.

They insist the charge is a legal obligation collected from passengers on behalf of the agencies and must be remitted promptly.

“Our unions have been compelled to express our grave concern over the reported failure of many airlines operating in Nigeria to remit the statutory five per cent 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.

“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,” the unions said in the letter signed by General Secretary of ATSSSAN, Frances Akinjole, and Deputy General Secretary of NUATE, Odinaka Igbokwe.

They said the situation was 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, describing it as “safety compromised”.

“We wish to remind all that the five per cent Ticket Sales Charge (TSC) is a statutory obligation established by law, with the necessary backing of International Civil Aviation Organisation (ICAO) instruments, and not a discretionary payment. International Civil Aviation Organisation (ICAO) Doc 9734-Safety Oversight Manual, Parts A and B, provides 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,” they added.

“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 organisations.

“In view of the foregoing, the Aviation Unions hereby call on the Management of Airlines to remit, within the next 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,” they added.

The Airline Operators of Nigeria had yet to comment on the issue as of the time of filing the report.