New Ultimatum Issued to Airlines Over Ticket Sales Commission
Nigeria’s aviation sector is facing potential disruption as workers have issued a new seven-day ultimatum to airlines and other entities that have failed to pay the mandated 5% ticket sales commission (TSC). The unions have warned that if the outstanding debts are not settled, they will initiate a nationwide picketing campaign.
Previous Ultimatum Expired Without Resolution
This ultimatum follows a previous 14-day notice issued on July 8, which expired on July 23 without any compliance from the airlines in question. The TSC is a statutory fee applied to all airline tickets sold in Nigeria, with proceeds directed to the Nigerian Civil Aviation Authority (NCAA) for the funding of regulatory oversight, safety, and security initiatives.
Concerns Over Funding and Compliance
The urgency of this warning comes in light of a recent announcement from airlines stating they will no longer collect and remit the 5% TSC on behalf of the NCAA, claiming that the arrangement was no longer sustainable. This decision has led to concerns regarding the financial viability of aviation agencies and the handling of future statutory levies.
Unions Highlight Risks of Non-Compliance
In a joint statement from Francis Akinjor, General Secretary of the Air Transport Services Senior Officials Association of Nigeria (ATSSSAN), and Odinaka Igbokwe, Acting General Secretary of the National Union of Air Transport Employees (NUATE), the unions condemned the failure of the defaulting operators to settle their dues despite prior warnings. They emphasized that the lack of compliance has severely impacted the operational capability of aviation agencies.
Financial Strain on Aviation Agencies
The unions expressed that the ongoing refusal to remit statutory deductions is depriving aviation agencies of essential funding necessary for fulfilling their responsibilities effectively. They argued that this financial strain ultimately endangers the safety and security of air transport. According to their statement, the lack of remittance has not only compromised safety measures but has also negatively affected the working conditions for staff across various airlines.
Final Notice and Potential Disruption
With the escalating situation, the unions declared they can no longer remain passive and have issued a final seven-day notice to all airlines and entities in default. “We cannot sit idly by while airspace security is jeopardized,” they stated. Unresolved, this dispute could lead to significant disruptions in airline operations and additional challenges within the aviation sector as a whole.
Industry Response Remains Unclear
As of the time of this report, neither the Airlines of Nigeria (AON) nor the NCAA has publicly responded to the unions’ recent ultimatum. If the deadline passes without resolution, the planned picketing could exacerbate existing operational difficulties within Nigeria’s aviation industry.
