Airlines risk NCAA sanction, Arik denies N12.8B debt

*Carrier resumes operations, chides FAAN

Two days after aviation union acting on behalf of the Federal Airports Authority of Nigeria (FAAN) grounded the operations of Arik Air, the Nigerian Civil Aviation Authority (NCAA) sent a strong warning to all airlines (Domestic & Charter) operating in the country to forward in full un-remitted funds accruable to the authority without further delay or risk sanctions.

This is coming as Arik Air debunked claims that it owes FAAN N12.B, saying the authority was economical with the truth.

 

Arik Air

The airline at a press briefing yesterday, maintained with documentary evidence to support its claim that it has paid a total of N18.9 billion to FAAN since inception. Arik wondered how the agency came up with such, ‘bogus’ figure.

Speaking at the headquarters of Arik Air, Chairman of the company, Sir Johnson Arumemi-Ikhide accused FAAN of not adhering to the rules and regulations of the Federal Republic of Nigeria, describing the decision to resort to self-help in disrupting its operations as a violation of rule of law, considering the fact that the matter is in court.

Confirming the airline’s resumption of flight, the airline chief said what happened on Wednesday took the airline by surprise. He accused FAAN of frustrating amicable resolution inspite the fact that they had paid N18.9B which he said was acknowledged by the agency in a letter sent to them.

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He apologised to thousands of the airline’s passengers whom he said were left stranded over the disruption of its operations. He however announced that the airline resumed flight operations.

“We have been paying our debts regularly to FAAN despite the fact that the airport landlord had some amount of money to pay to it arising from the incident to its aircraft at the Calabar Airport some few years ago.”

Arumemi-Ikhide also displayed a letter dated February 3, 2016 acknowledging the lodgement of N11.4 billion to the coffers of FAAN from the airline. He maintained that it had since the commencement of operations in October 2007, paid a total sum of N18.9 billion to the agency.

He alleged that FAAN recently confirmed getting “a mysterious additional N7.5 billion in its account,” but insisted that the money didn’t come from Arik Air despite its insistence that the large sum was from it.

He declared that the airline was ready for reconciliation of the accounts, but FAAN had always frustrated reconciliation of the accounts even when the immediate past Permanent Secretary in the Ministry of Aviation, Hajia Binta Bello set up a committee for that purpose.

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He recalled that about two years ago, a Ministerial Committee on Debt Reconciliation was set up by the government, but lamented that in spite of the fact that the process was initiated by FAAN, the agency said it was not ready for reconciliation and asked for two weeks extension, which was granted.

He added, “After the two weeks elapsed, FAAN again asked for another four weeks extension from the committee, which was granted, but unfortunately after the four weeks, FAAN refused to appear before the committee. We even wrote series of letters to FAAN telling them of our readiness to the committee, but there was no response from them.

“Also, FAAN took us to the Federal High Court in Lagos, which we appeared, but rather than continuing with that, FAAN wrote through their lawyers that they had forwarded the issue to the Attorney General of the Federation and we chose April 18th, 2016, but still didn’t happen because of FAAN. The case eventually came up in the court on April 19, 2016 and FAAN at the court confirmed that reconciliation processes were going on as planned, but we were surprised at the action of the workers of FAAN with the disruption of our flight operations on Wednesday.”

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Meanwhile, the NCAA has ordered all debtor airlines to pay up their debts or risk sanction.

The regulatory agency directed all operators; domestic and charter in the country to forward in full unremitted funds accruable to it without further delay.

NCAA also ordered that all reconciliation of all outstanding debts by the airlines must be completed within 60 days, adding that the five per cent Ticket/ Cargo/ Sales Charges must be On Gross Ticket excluding Value Added Tax, VAT, and Passenger Service Charge, PSC.

A statement by the spokesman of NCAA, Sam Adurogboye hinted that the directive was handed down to the airlines at a meeting with the operators on non-remittance of five per cent Ticket Sales Charge, TSC, held at the agency’s headquarters Annex at the Murtala Muhammed International Airport, MMIA, Lagos on Wednesday.

Adurogboye further stated that its Director-General, Capt. Muhtar Usman presided over the meeting, which included NCAA’s top management staff.

Wole Shadare