Nigeria Air Peace: Unions Strike Over Ticket Sales Charge Dispute

• Air Peace operations were disrupted by ATSSAN and NUATE unions over alleged non-remittance of the 5% Ticket Sales Charge (TSC).
• Passengers were left stranded at Murtala Muhammed Airport, Lagos, following a three-day strike notice issued on August 4.
• The TSC is a statutory levy collected by airlines and remitted to the NCAA to fund aviation safety, regulation, and infrastructure.
• ATSSAN's General Secretary, Mr. Frances Akinjole, labeled Air Peace as "recalcitrant" and a "template" for other non-compliant airlines.
• The NCAA appealed for dialogue, noting that a ministerial meeting to resolve the issue was canceled due to airline operators' absence.

The failure of airline operators to honor a ministerial invitation for dialogue also points to challenges in industry-wide cooperation and dispute resolution mechanisms.

Nigeria's largest carrier, Air Peace, recently experienced significant operational disruptions, leading to numerous passengers being stranded at the Murtala Muhammed Airport in Lagos. This industrial action, which brought flights to a standstill at the old terminal, was initiated by the Air Transport Senior Staff Association of Nigeria (ATSSAN) and the National Union of Air Transport Employees (NUATE).

The unions had issued a three-day strike notice on August 4, citing Air Peace's alleged failure to remit the statutory five percent Ticket Sales Charge (TSC). This non-remittance of the crucial aviation levy became the focal point of the dispute, prompting the unions to take direct action to compel the airline to fulfill its outstanding obligations.

Mr. Frances Akinjole, the General Secretary of ATSSAN, addressed affected passengers, characterizing Air Peace as a "recalcitrant airline." He explained that the unions were compelled to resort to industrial action only after all other attempts to resolve the issue had proven unsuccessful. Akinjole further stated that while stopping operations was not their usual approach, such measures became necessary when the "lives and existence" of their members were at stake, suggesting Air Peace served as a precedent for other non-compliant carriers.

The Ticket Sales Charge (TSC) is a mandatory five percent levy applied to all commercial airline tickets sold within Nigeria. This charge is collected by airlines at the point of sale and subsequently remitted to the Nigeria Civil Aviation Authority (NCAA). The funds generated from the TSC are not retained by a single entity but are strategically distributed among various key aviation agencies.

These funds are vital for supporting critical functions across the Nigerian aviation sector, including ensuring safety oversight, facilitating regulatory compliance, and investing in essential industry infrastructure. The proper and timely remittance of the TSC is therefore fundamental to the financial health and operational integrity of the country's air transport system, directly impacting the capabilities of regulatory bodies to perform their statutory duties.

In the wake of the disruption, the Nigeria Civil Aviation Authority (NCAA) acknowledged the situation and promptly appealed to the unions to cease their industrial action. Capt. Chris Ona Najomo, the Director General of the NCAA, issued a statement confirming that the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, had been actively engaged in efforts to mediate and resolve the underlying issues.

Najomo's statement revealed that a meeting convened by the Minister in the preceding week, intended to address the dispute, could not proceed because airline operators failed to attend. Despite this setback, the NCAA reassured the public that flight safety remained uncompromised and that the Authority was continuing to uphold its statutory safety oversight responsibilities. The NCAA reiterated its call for all parties to embrace dialogue and cooperation, expressing confidence that a resolution would be reached shortly, allowing for the swift resumption of normal flight operations.

The Nigeria Air Peace Ticket Sales Charge dispute underscores the significant operational and reputational risks that can arise from non-remittance of statutory levies within the aviation sector. The immediate consequence of the industrial action was evident in the plight of passengers, with one individual lamenting missing a 7:00 AM flight and observing that "everyone is stranded," highlighting the direct impact on the traveling public and the broader economy.

Beyond the immediate inconvenience, this incident brings to the forefront the critical importance of strict compliance with financial regulations for airlines operating in Nigeria. The failure of airline operators to honor a ministerial invitation for dialogue also points to challenges in industry-wide cooperation and dispute resolution mechanisms. Such events not only disrupt services but also can erode public trust and destabilize the delicate balance required for a functioning and safe air transport ecosystem.

Lawyers advising Nigerian airlines or compliance officers in the aviation sector should note the significant operational and reputational risks arising from non-remittance of statutory levies like the Ticket Sales Charge, underscoring the need for strict compliance and effective union dispute resolution.

Source: Original reporting via Vanguard