Tuesday, February 8, 2011

NON REMITTANCES OF TAXES AND CHARGES

on all tickets paper or paperless, it is clearly stated that this taxes or charges are owned by the different agencies, though collected on their behalf as obtained in other climes, the only difference is while in other climes the taxes and charges are remitted regularly or on agreed terms, in Nigeria the reverse is the case. We love "playing with other people's money", thereafter they will run to the ministry, presidency, e.t.c for protection and intervention when its time to pay up. The presidency should realise their intervention is clear case of robbing peter to pay Paul.


FAAN and related organisations must work out modalities of getting these charges as quickly as possible; in fact before the aircraft departs will not be a bad idea due to the embarrassing backlog. The action will inadvertently aid the efficient management of our airlines as they will be saddled with the responsibility using revenue generated from sales, loans while also working assiduously towards improving revenue form other ancillary options.

We should also understand that the airline industry is usually funded and dependent on loans to meet immediate and future operational targets while revenue generated are used to service these loans, run operational expenses and also act as necessary liquidity in an adverse period. If taxes and charges are to be used at all it is temporal with clear understanding of other parties.


The airlines should pay for their services and should equally demand for compensations when the service providers’ actions or in-actions affect or slows down their operations. The BAA chief executive Colin Matthews instigated an inquiry into the airport shutdown last month. He also agreed to forgo his annual bonus during the public outcry that culminated in flight delays and Virgin Atlantic was even bold enough to announce that it will hold BAA charges in his possession until a form of compensation was worked out.

It is a lesson for us all to be bold enough to accept responsibility and listen to public outcry. the agencies should also consider reducing their present charges which is not reflective of market realities while also waiving a certain percentage of these charges or taxes collected by the airlines, just as they have done with concessionaires, EFCC and other debt retrieving partners.

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