Airline operators in Nigeria have called for Federal Government intervention in the dispute over the five per cent Ticket Sales Charge (TSC), warning that the current system is adding to the financial pressure on local carriers.
The appeal was made by Air Peace Chairman and Chief Executive Officer, Dr Allen Onyema, who is also Vice President of the Airline Operators of Nigeria (AON).
Speaking at the 30th annual conference of the League of Airport and Aviation Correspondents in Lagos, Onyema said the government’s intervention could help prevent further financial strain in the aviation industry.
Under the current arrangement, airlines remit five per cent of the value of each flight ticket as TSC to the Nigeria Civil Aviation Authority (NCAA).
Onyema argued that the percentage-based charge was placing additional pressure on airlines already operating under difficult financial conditions.
He proposed replacing the charge with a fixed fee on each ticket, saying a flat-rate system would provide greater predictability and reduce the burden on operators.
According to him, a more workable regime for taxes and aviation charges would protect airlines, regulatory agencies and passengers while helping reduce the rate at which Nigerian airlines exit the market.
Onyema said the operators were seeking President Bola Tinubu’s intervention because of what he described as the President’s willingness to consider policies affecting indigenous businesses.
He said resolving the issue could trigger a significant turnaround in Nigeria’s airline industry.
Airlines seek Tinubu’s intervention over 5% ticket sales charge
