Airline Operators of Nigeria (AON) are calling on the National Assembly to scrap the current 5% ticket, charter and cargo sales charge (TSC). The association made its position known on Thursday at a public hearing on the proposed revision of the statutory sharing formula for the 5% TSC, held at the Federal House of Representatives.
The AON, represented by former Managing Director of the Nigerian Airspace Management Agency (NAMA), Capt. Roland Iyayi, wants the TSC replaced with a model used by the Federal Airports Authority of Nigeria (FAAN), arguing that the existing percentage-based system is unfair to domestic carriers.
Increases in fuel prices, Iyayi said, have hiked operating costs for most domestic airlines, making remittance of the 5% levy difficult.
Iyayi stated that a flat charge like that of FAAN’s passenger service charge, PSC, would remove the distortions created by the TSC percentage levy and put operators on more equal footing.
Aviation unions had threatened to shut down airline operations over a dispute with the operators on the levy remittance. According to the unions, a failure to remit the funds has affected aviation agencies’ operations, workers’ welfare and the safety of the industry.
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