As part of measures to recover over N47 billion it is being owed by airlines, the Nigeria Civil Aviation Authority (NCAA) has declared a ‘no pay, no service’ sanction on defaulting airlines.
Acting Director General of the agency, Chris Najomo, said it was time to put in place strict sanctions against the defaulters, stressing that hence all the debtors “shall cease to receive services from the authority.”
Addressing journalists in Lagos to unveil his plans for the agency, Mr. Najomo disclosed that plans were afoot to set up a debt recovery joint task force to implement the NCAA’s recovery drive.
Addressing journalists in Lagos, Mr. Najomo shed light on the necessity of such stringent measures. He emphasized that the time had come to take decisive action against defaulters, as the accumulated debts were significantly impacting the operations and financial stability of the aviation authority.
The establishment of a debt recovery joint task force marks a strategic move by the NCAA to streamline and intensify efforts to recoup the outstanding funds. This task force is expected to coordinate and implement the recovery drive, utilizing a combination of legal, administrative, and procedural measures to ensure that airlines meet their financial obligations.
The implementation of the ‘no pay, no service’ policy is poised to have a profound impact on the aviation industry. Airlines, especially those grappling with financial challenges, will now be compelled to prioritize settling their outstanding debts to avoid disruptions in essential services provided by the NCAA. This move is not only a financial necessity for the authority but also a step towards fostering financial discipline within the aviation sector.
While the debt recovery drive is essential for the financial health of the aviation authority, it is not without its challenges and potential controversies. Some airlines may argue that the economic challenges facing the industry, exacerbated by the global pandemic, have made it difficult for them to meet their financial obligations promptly. Striking a balance between recovering debts and considering the economic challenges faced by airlines will be a delicate task for the NCAA.
The acting DG also noted that the agency was not oblivious to the illicit activities of private jet operators operating commercial flights without commercial licences. He stressed that anyone who wants to do commercial or charter operations must apply for a commercial licence.
A recent preliminary report by the Nigerian Safety Investigation Bureau revealed that Flint Aero aircraft, which crashed at Ibadan Airport in November last year while carrying the Minister of Power, Adebayo Adelabu, was operating illegally.
Highlighting the regulatory framework, Mr Najomo said that only holders of Air Transport Licence (ATL) and Airline Operating Permit (AOP) with a valid Air Operator Certificate (AOC) were authorised to conduct charter operations.
He maintained that the NCAA will implement a robust risk-based surveillance system to close any potential gap opened by the increased validity period of Air Operator Certificates (AOCs) for unscheduled and scheduled operators.
The surveillance, which encompasses safety, security and economic monitoring, will be extended to all service providers, Mr Najomo added.
He stated further that the authority will intensify efforts in enforcing airlines’ compliance with the Nig Cars 2023 part 19 on Consumer Protection Regulations.
“In line with the assurance by the Minister of Aviation that air passengers get value for their money, NCAA would ensure that airlines provide timely care to passengers for service disruptions, that consumers receive quality services in the aviation industry and that their rights are always protected,” Mr Najomo said.
The acting DG reiterated the commitment of the agency to implementing a simplified certification and licensing system to streamline the approval process. He hinted that this will be extended to other authorisations, approvals and permits.
“This is a derivative of the ease-of-doing business philosophy towards encouraging growth of the aviation industry,” he said.
