Connect with us

Travel/Tourism

Taxes, Infrastructure, Others Top IATA Agenda at AACO

Published

on

iata-agenda

iata-agenda

By Modupe Gbadeyanka

The International Air Transport Association (IATA) has highlighted four priorities in the Middle East and North Africa (MENA) which must be addressed for aviation to deliver maximum economic and social benefits.

These issues are sufficient and affordable infrastructure capacity (including air traffic management), aligned with user needs; curbing the spate of unprecedented increases in taxes and charges over the last year; aligning consumer protection regulations with global standards; enhancing security efforts and infrastructure in MENA reflects the foresight of Governments in the region to capture aviation’s economic and social benefits.

It was gathered that passenger demand in MENA is set to expand by 4.8 percent each year on average over the next 20 years, to become a market of 400 million passengers in 2035.

If that demand is met, the number of jobs supported by aviation in the region will grow from 2.4 million to 3.9 million over the same period. And aviation’s contribution to regional GDP will increase from $157.2 billion to $359.5 billion.

“Aviation is the business of freedom. Its success generates prosperity. A safe, secure, efficient and sustainable air transport industry contributes to the welfare of nations. Strengthening aviation, in partnership with governments, pays huge social and economic dividends.

“Airlines in MENA face very different business challenges. But whether building or protecting competitiveness, cost-efficient infrastructure, global standards, reasonable costs and secure operations are critical,” said Alexandre de Juniac, IATA’s Director General and CEO, during his opening remarks at the Arab Air Carriers Organization (AACO) 49th Annual General Meeting in Casablanca, Morocco.

De Juniac urged the region to address four key areas:

Infrastructure: “Infrastructure in MENA reflects the foresight of Governments in the region to capture aviation’s economic and social benefits. However to keep this competitive advantage, continuous consultation is needed so that capital expenditure aligns with industry growth, required service levels and acceptable costs,” said de Juniac.

De Juniac also sounded a note of caution on infrastructure privatization and urged governments to effectively balance public and private interests. “The desire to harness commercial discipline in managing airports is understandable. But, despite many airport privatizations around the world we have not seen any outcomes that have truly met expectations. It’s important to learn from experiences elsewhere, especially ensuring that any privatization is driven by real user consultation throughout the process,” said de Juniac.

De Juniac also called for cooperation to modernize air traffic management (ATM) in the region. “Studies show that the average ATM delay in the Gulf is 29 minutes with the potential to double by 2025. Without an increase in the overall efficiency of the ATM systems in the region through improved airspace design, MENA’s world-class hubs will be compromised with gridlock. We appreciate the many programs that are in progress – including the GCC Air Navigation Committee, the Middle East ATM Enhancement Program and others. But we must drive these efforts even harder to achieve a real breakthrough,” said de Juniac.

Rising costs: IATA urged cooperation to reverse unprecedented rises in taxes and charges – about $700 million in extra costs in 2015 alone. “Every dollar that a passenger spends in the region creates jobs and spreads prosperity. And every dollar collected in taxes or charges is an incentive for travelers to go elsewhere. A low cost structure is a key component of the region’s success—particularly in the Gulf,” said de Juniac.

Consumer Protection Regulations: IATA urged global standards to guide the proliferation of consumer protection initiatives in the region. Regulators in Saudi Arabia, Oman, Qatar, Jordan and the Arab Civil Aviation Commission are in various stages of activity in this regard. De Juniac called on governments in the region to keep the global standards and recommended practices arrived at through the processes of the International Civil Aviation Organization (ICAO) at the core of any developments.

Security: Security is a global issue. Keeping aviation secure is integral to a state’s responsibility for national security as highlighted in a UN Security Council Resolution earlier this year. Challenges include insider threats, landside exposure at airports, overflight of conflict zones, and cyber security. “Security is clearly a government responsibility. To stay a step ahead of those who would do aviation harm, intelligence gathering by governments and information sharing among governments and with industry is essential. Industry also plays a vital role in supporting their efforts. It’s a top priority for IATA and we will become even more active,” said de Juniac.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Travel/Tourism

Airlines Fault Claims of Unpaid NCAA Regulatory Fees

Published

on

Modular Refinery for Aviation Fuel

By Adedapo Adesanya

The Airline Operators of Nigeria (AON) has denied owing cost recovery charges to the Nigeria Civil Aviation Authority (NCAA), insisting that all services rendered by the regulator to domestic airline operators are paid for fully in advance on a cash-before-service basis.

In a statement from the airlines’ body, it was emphasised that no domestic airline in Nigeria receives NCAA regulatory services without first making full payment of invoices issued to it by the agency, describing suggestions of the indebtedness for regulatory services as factually inaccurate.

It said that what the NCAA refers to as ‘outstanding charges’ relates solely to the 5 per cent Ticket Sales Charge (TSC), a tax imposed by the NCAA on passengers, which it said is not in consonance with the dictates of international aviation.

The AON then urged the federal government to urgently amend the Civil Aviation Act to empower the NCAA to collect whatever appropriate fees and charges are due it directly from passengers or whoever else, without routing such through the domestic airlines, from June 1, 2026.

It said doing this will relieve domestic airlines of the financial burden of acting as collection agents for the NCAA, since airlines currently bear banking transfer charges and other transaction costs in the process of transmitting funds to the organisation.

The airline body reiterated its position that the NCAA is a regulator, not a revenue-generating agency and that it does not fund any aspect of the airline businesses or render any direct service to passengers.

The AON said every service the agency provides to airline operators is fully paid for in advance before it is rendered.

“The AON notes that several member airlines maintain dedicated accounts, from which the NCAA draws down its monthly remittances, until the force majure caused by the Iran-Israel/USA conflict, which had put a lot of financial pressure on airlines worldwide.

“Notwithstanding this arrangement, the AON had formally appealed to the federal government through the office of the Minister of Aviation and Aerospace Development, to suspend the payment of all statutory charges temporarily, as an interim measure to assist airlines in managing their cash flows during the current period of severe financial stress caused by the increase in the cost of Jet A1.

“As an interim response, President Bola Tinubu graciously granted a 30 per cent concession while waiting for the government’s decision on the other aspects of the AON intervention request.

“While the AON acknowledges and appreciates this gesture, we had appealed for a meeting with Mr President to discuss further reliefs, a request that is yet to be granted,” the AON said.

Speaking further on reports that airlines owe billions in debt to the NCAA, the AON said the 5 per cent Ticket Service Charge in question was introduced over 45 years ago under the Government of General Gowon by the then Federal Civil Aviation Authority (FCAA) and its continued relevance has not been reviewed ever since.

It further stated that domestic airlines, in addition to the 5 per cent TSC, still pay separately ànd directly for services provided by the various industry agencies, including the NCAA itself.

AON said that the 5 per cent TSC is an ad valorem tax applied to an airline’s gross earnings, not profits and that the global aviation industry operates at a profit margin of between 1.5 per cent and 2.5 per cent at best.

“The AON remains committed to constructive engagement with the government and all stakeholders to achieve a growth-oriented sector, designed to enable the accelerated growth of key sectors of the economy and the improvement and sustenance of a healthy quality of life for the citizenry,” it said.

Continue Reading

Travel/Tourism

Airline Remittances: NCAA Halts Enforcement of ‘No Pay, No Service’ Policy

Published

on

NCAA

By Adedapo Adesanya

The Nigeria Civil Aviation Authority (NCAA) has announced the temporary suspension of its “no pay, no service” directive earlier issued to airlines with outstanding statutory remittances, citing ongoing consultations and prevailing operational challenges in the aviation sector.

In a statement, the authority said the decision followed a review of industry conditions, particularly the rising cost of aviation fuel, which has placed significant financial pressure on domestic carriers and threatens overall sector stability.

However, the NCAA stressed that the suspension does not amount to a waiver, cancellation, or forgiveness of the debts owed by the affected airlines, noting that such decisions fall outside its regulatory mandate.

The agency recalled that President Bola  Tinubu had earlier approved a 30 per cent discount on outstanding statutory charges owed by domestic airlines to aviation agencies, as part of broader government efforts to cushion the impact of high Jet A1 fuel costs and stabilise the industry.

According to the NCAA, airlines remain fully responsible for settling their obligations, adding that it would engage operators individually to ensure compliance through structured repayment arrangements that do not disrupt operations.

The regulator also clarified the nature of the 5 per cent Ticket and Cargo Sales Charge, describing it as a statutory levy mandated by the Civil Aviation Act and embedded in the cost of air travel and cargo services.

It explained that the charge is collected by airlines at the point of ticket and cargo sales on behalf of the aviation system and must be remitted accordingly.

The organisation emphasised that the funds do not constitute revenue or profit for the airlines and should not be treated as such.

It further noted that the revenue from these charges is distributed among key aviation institutions, including the regulator itself and other service providers, all of which play vital roles in ensuring safe, efficient, and internationally compliant aviation operations.

It added that the NCAA operates on a cost-recovery basis and does not receive direct funding from the Federal Government for its routine regulatory activities, making timely remittance of statutory charges critical to sustaining its oversight functions.

The suspension of the enforcement directive, it said, is a measured step aimed at maintaining operational stability in the sector while reinforcing the obligation of airlines to remit collected charges.

The NCAA reaffirmed its commitment to balancing regulatory enforcement with industry sustainability, warning that statutory funds already collected must be remitted for their intended purposes.

Continue Reading

Travel/Tourism

Emirates Skywards Commences ‘Season of Rewards’ Campaign

Published

on

Emirates Skywards

By Modupe Gbadeyanka

A new campaign designed to celebrate its passengers across the globe has been launched by Emirates Skywards, a statement from the company confirmed.

The promotion is known as Season of Rewards, and will run from May 21 to August 31, 2026, with beneficiaries getting different rewards for their patronage.

The Skywards Season of Rewards offers more savings with Cash+Miles on Emirates and flydubai, with members unlocking twice the savings, including enhanced Cash+Miles rates across the Emirates and flydubai network when booking flights and extras (excess baggage, lounge access and seat selection. The offer applies across all classes of travel, fare brands and destinations on both airlines. With the limited-time offer, 2,000 Skywards Miles can unlock savings of $30 instead of $15.

In addition, passengers will receive extra tier benefits for travel up until August 31, 2026. Members earn a 20 per cent bonus Tier Miles on every Emirates or flydubai flight, helping members move through the tiers faster. With reduced Tier Miles required during this period, it’s now even easier for members to renew or upgrade their membership status.

Also, they will get 50 per cent bonus Miles with travel partners, including Emirates Skywards Hotels, Marriott Bonvoy, IHG Hotels and Resorts, Jumeirah and more. However, registration is required to participate, and bonus Miles will be credited within 60 days after the end of the offer period.

Further, Skywards members can book their next reward flight and extras with Miles, starting from 4,500 Miles instead of 9,000 Miles during the promo period across all routes, cabins and fares.

“Skywards Season of Rewards reflects our continued commitment to creating even more value for our members worldwide.

“Whether members are planning a family holiday, a Dubai stopover, a weekend escape, or simply looking to maximise rewards across their travel spend – this initiative unlocks more opportunities to earn, save and experience the world with Emirates Skywards,” the DSVP Emirates Skywards, Nejib Ben Khedher, said.

Continue Reading

Trending