Why domestic airlines owe aviation agencies

Indications emerged last weekend that domestic airlines owe aviation agencies in the country because of the poor service rendered the former by the latter.

Parastatals in the aviation industry are currently at daggers drawn over N5 billion debt owed them by domestic scheduled and charter operators, which prompted the invitation of some of the operators recently by the Economic and Financial Crimes Commission, EFCC.

Major service providers to airlines in the sector include the Federal Airports Authority of Nigeria, FAAN, Nigerian Airspace Management Agency, NAMA, and Nigerian Civil Aviation Authority, NCAA, which operators owe by way of refusal to remit the 5% passengers service charge, PSC, collected on behalf of the regulatory agency.

Vanguard gathered that some operators have vowed not to pay particularly FAAN due to poor services, ranging from frequent power outage to absence of compensation for aircraft engines damaged by bird strike.

A source told Vanguard that most of the domestic airlines also incur extra cost on the night operations from and to the Murtala Muhammed Airport, Lagos, due to absence of air field lighting on the domestic runway 18L, which makes night operations on the runway impossible.
According to the source, flight operations on the runway is restricted to daylight operations only and diversion of take off and landing to international runway 18R and causes burning of more fuel.

“Come to think of it, the bills submitted to airlines by FAAN are not commensurate with services rendered.  Almost on daily basis, airlines lose engines to bird strike and not a dime comes from the airports authorities for repair to damage done to those engines.

“It costs so much to have these engines fixed.  Look at the domestic runway which was constructed about three years ago, up till now, the airfield lighting is not ready.  When ever it rains, visibility on the runway is poor, and this compels pilot to land on the international runway.  The implication of this is that airlines burn more fuel to taxi to their final stop.  It is the airlines that bears this additional cost,” the source said.

It was learnt that one of the grouse against NAMA, which had made some domestic airlines to often shun payment of charges is the absence is the fact that their aircraft are kept for too long by air traffic controllers, ATC, , either in the holding point for take off or in the air due to traffic, thereby causing them to burn more fuel.
The absence of an air field lighting at the Lagos airport is also said to be partly responsible for this.
Until recently, pilots and their employers had complained of black spots in the airspace which, according to them, impedes radio communication between them and ATCs, contending that they had had to use procedural methods to avoid such bad spots, thereby burning more fuel in the process.

It was learnt that the failure of some of the airlines to pay NAMA its en route and navigational charges is some sort of protest against what they described as arbitrary charges imposed on them by the agency.

Recalled that airline operators had sued severally NAMA management for such alleged arbitrary charges, which had prompted interventions by successive Ministers of Aviation.

“If services rendered by these agencies are satisfactory and their charges, reasonable, there is no reason not to pay,” an airline official, who preferred anonymity told Vanguard.

On the 5% passenger service charge owed the NCAA by airlines, investigations revealed that the airlines’ grouse is that they are satisfied with the fact that the deduction is made on the ticket revenue due them, after all the necessary taxes had been made,
A source close to one of the airlines argued that the deduction should rather be made on the entire ticket price, rather than the revenue due airlines.
According to the source, this is the bone of contention between the regulatory agency and some airlines who want a reconciliation of the issue before feeling compelled to remit.
But Assistant Secretary General of Airline Operators of Nigeria, AON, Alhaji Mohammed Tukur, told Vanguard that in as much as most of the airlines had a good case against the service providers, it was expedient for them to pay their debts.

According to him, without payment of the debts, the agencies will not be able to provide infrastructure and facilities necessary for flight operations.

Tukur said the AON was aware of the challenges confronting its members, stressing that informed the reason it appealed to the federal government for waivers for airline operators.
“There is nowhere in the world where airlines use facilities and don’t want to pay.  The truth of the matter is that some airlines don’t want to pay.  We recommended a waiver for our members to the federal govrnment, which prompted it to set up a committee to look into areas which waiver is desirable.  It is Due Process that is delaying the waiver,” Tukur said.

He said that due to AON’s appeal, government has given debtor airlines 30 months within which to pay up their debts, adding that this was enough intervention to make things easier for the airlines.

On engine damage suffered by aircraft attacked by birds, Tukur said airlines had the rights to forward a bill for repairs of those engines to the Federal Airports Authority of Nigeria, FAAN.

According to him, the airlines also have the rights to sue the airports authority for refusing to compensate them for money expended on repair of aircraft engines damaged due to bird strike.

Tukur also cautioned Aviation Minister, Mrs. Fidelia Njeze, not to provide cover for any of its members trying to evade paying its debts, adding that this was inimical to the development of the nation’s aviation sector.