Nigerian airline operators have urged the Federal Government to urgently resolve the controversy surrounding the five per cent Ticket Sales Charge (TSC), warning that the existing system is adding to the financial pressure threatening the survival of indigenous carriers.
The appeal was made by Dr Allen Onyema, Chairman and Chief Executive Officer of Air Peace and Vice President of the Airline Operators of Nigeria (AON), during the 30th Annual LAAC Conference in Lagos.
Onyema said government intervention could help prevent further financial distress in the aviation industry, particularly at a time when airlines are already facing significant operational and financial challenges.
Under the current arrangement, airlines are required to remit five per cent of the value of every ticket sold as TSC to the Nigeria Civil Aviation Authority (NCAA). According to Onyema, the percentage-based system places an additional burden on airlines and should be reviewed.
He advocated replacing the percentage-based charge with a fixed flat-rate fee per ticket, arguing that such an arrangement would make the payment more predictable and reduce the financial strain on operators.
Onyema said a more balanced regime of taxes and regulatory charges would benefit not only airlines but also aviation agencies and passengers, while helping to strengthen the sustainability of the industry.
He also appealed to President Bola Ahmed Tinubu to intervene in the matter, expressing confidence that the President would be willing to consider the impact of the policy on indigenous businesses and the jobs they provide.
“One thing I must say is that I’m certain any day President Bola Ahmed Tinubu sees us, if they allow us to see him, because I know he will not mind to meet with us, that will be the day a new revolution in the airline industry in this country will occur because Mr. President abhors anything capable of affecting indigenous businesses that provide jobs for the people adversely,” he said.
The operators believe that resolving the TSC controversy would ease some of the financial pressures confronting Nigerian airlines and create a more sustainable environment for the growth of the domestic aviation sector.