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Aircraft belonging to some extinct domestic airlines

NCAA to sanction airlines over indiscriminate fare increase

The Nigerian Civil Aviation Authority (NCAA) has threatened to mete out sanctions on any airline that increases its airfare arbitrarily without filing the proposed add-on charges with the regulatory authority for approval.

The NCAA in a statement signed by the General Manger Public Affairs, Sam Adurogboye, warned all carriers operating in Nigeria to desist from arbitrarily increasing miscellaneous charges on ticket payment content without the Authority’s approval.

According to the law, when approving any application for an add-on charge or surcharge related to fuel, the NCAA is required to take into account, changes in prices of aviation fuel, the relevant hedging policies of the air carrier, the justifications provided by the air carrier and other relevant factors.

Aircraft belonging to some domestic airlines
Aircraft belonging to some domestic airlines

The industry regulator is also to ensure that the revenue so generated would not exceed the additional fuel costs borne by the airline operators during the corresponding period.

Therefore with immediate effect, the Nigerian Civil Aviation Authority (NCAA) has directed that all airlines should file any proposed add-on charges, surcharges or other miscellaneous charges with the Regulatory Authority.

In the procedure of filing same, all justifiable reasons for increment must be adduced in accordance with Parts 18.14.3.1 and 18.14.3.2.(i-iii) of the Nigerian Civil Aviation Regulations (Nig. CARs) which relates to the approval of charges on all flights within Nigeria or originating from Nigeria to international routes.

As contained in the Nigerian Civil Aviation Regulations, (Nig.CARs) 18.14.3.1.

”In requesting for approval of any add-on charges or surcharge, an air carrier is required to provide justifiable basis for the proposed increment with a consideration of all relevant factors including a new linear rationalisation for the specific aggregated costs sought to be recovered and consumer interests.”

In addition, 18.14.3.2. says, “when approving any application for an add-on charge or surcharge related to fuel, the Authority shall:

(i)            Take into account changes in prices of aviation fuel, the relevant hedging policies of the air carrier, the justifications provided by the air carrier and other relevant factors;

(ii)           Ensure that the revenue so generated would not exceed the additional fuel costs borne by the airline operators during the corresponding period; and

(iii)          Approve on a short term basis, not exceeding a period of two (2) months in each instance.

Therefore subsequently, NCAA wishes to notify all operators that any add-on charge, surcharge or any other miscellaneous added on passenger tickets without regulatory approval should cease forthwith. Any further breach would attract the appropriate sanctions.

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