In its drive to recover to recover its debts using the ‘no pay, no service’ approach, the Nigerian Civil Aviation Authority (NCAA) said it would not renew the Air Operator Certificate (AOC) for Azman Air unless the airline paid all its outstanding debts.
Recall that on September 15, 2022, the former director general of the NCAA, Capt Musa Nuhu announced the airline’s air transport licence (ATL) for serious infractions, including the refusal to renew its certificate.
He also said the airline had refused to produce a plan to offset its backlog debts totaling N1.2 billion.
The agency explained that the airline was not serious about paying off the debt as it offered to remit N10 million monthly.
He said the NCAA rejected the offer, noting that it would take the airline some 12 years to pay up should it (NCAA) agree to such a ridiculous debt settlement plan.
It insisted on a N50 million monthly payment while the airline offered to service the debt with N20 million. The airline was unyielding following which NCAA withdrew the ATL.
In August 2023, the airline’s management announced the suspension of the carrier’s commercial operations and sent all the staff on compulsory leave without pay.
“As you are aware that our domestic operations have been put on-hold for a while, due to the conveyance of our aircraft for C-checks and the MROS’ has given a longer time of completion.
“In view of the above, management directed to write and communicate its decision that all staff have been placed on leave without pay with effect from 1” August, 2023,” it said.
Speaking at the briefing yesterday, the acting director general of the NCAA, Capt Chris Najomo disclosed that the airline had applied for the renewal of its AOC but insisted that the carrier would have to settle the outstanding debts before getting the document.
“The airline was having serious issues about debt payment, repayment. They had debt payment schedule with NCAA and before the airline suspended its operations, how faithful were they for the payment of their old debts?
“Azman came and we gave it a payment plan. Because it wanted to renew its AOC or so at that time, it complied and was doing the payment until such a time that it stopped the payment.
“I learnt it sent a message that it wants to renew its AOC. Of course, we have given it all the guidelines and that also include fulfilling whatever debts they are owing us. So if it does not pay that debt it cannot get its AOC.
“When we give you a payment plan, the CAA tries to help you because the money is so bulky we cannot take it. That’s where the CAA tries to help the airlines. We will tell you how much you can give us monthly; you will adhere to the payment plan while paying your current bills,” Najomo declared.
The director general also said the airlines were heavily indebted to the NCAA.
Consequently, he said the regulator had adopted the ‘No pay, No service’ method to whip all the airlines into shape.
Although Najomo did not disclose the total debts owed by all the airlines, it would be recalled that in 2022, the former director general of NCAA, Capt Musa Nuhu revealed that airlines’ debts to the agency stood at N19 billion and $7.8 million from accumulation of the statutory 5 per cent ticket sales charge and cargo sales charge (TSC/CSC) respectively.
He said airlines that were yet to offset their humungous debts running into several billions of naira would not only be denied services but would also not have its AOC renewed.
“All debtors to NCAA shall cease to receive services from the Authority; there shall be ‘operation no pay, no service’ and there will be strict sanctions for defaulting operators.
“We are intensifying our cost recovery drive; the federal government now takes 50 per cent of the money. Most of the airlines are owing us, we have told them to pay up. A debt recovery joint task force shall be mandated to implement the cost recovery drive,” he added.
