N1.2 Billion Debt: Azman Air Signs MoU With NCAA; Begins Operations

Following the suspension of its operating license over N1.2 billion debt which accrued from non-remittance of ticket sale charge and cargo sale charge (TSC/CSC), Azman Air has now signed a Memorandum of Understanding (MoU) with the Nigerian Civil Aviation Authority (NCAA) on how it will be paying the said amount.

The local airline disclosed in a statement made available to the press on Friday.

On Thursday, NCAA had suspended the renewal of the airline license and forced management to cancel all flights scheduled for operations on Thursday and Friday over its non-remittance of over N1.2 billion TSC/CSC. Passengers already scheduled to travel on Azman were forced to return home or in some cases join other airlines to their destinations.

On Friday, Azman Air announced it has signed an MoU with NCAA and other affected parties. The NCAA, therefore, renewed the company an operating license.

“A Licence to operate scheduled and non-scheduled passenger and cargo air services within and outside Nigeria is hereby granted, pursuant to Sections 18.2.2.3 and 18.2.2.4 of the Nigeria Civil Aviation Regulations 2015 to:
Messrs: AZMAN AIR SERVICES LIMITED 1, Zaria Road, Kano for a period of five (5) years Date issued: 16th September, 2022 Expiry Date: 15th September, 2027. The utilisation of this Licence shall be in compliance with all relevant Civil Aviation Regulations,” the Director-General of the NCAA, Capt. Musa Nuhu, disclosed in the letter forwarded to the airline.

According to the details of the MoU, Azman Air agreed to be remitting N50 million monthly from the 5% of all its ticket Sales Charge and Cargo Sales Charge.

The formalities of the MoU signing was finalised on Friday at the NCAA headquarters in Abuja, but the regulatory agency had already lifted the sanction on the airline following its compliance with the various agreements reached.

The 5% TSC/CSC is shared among five aviation agencies; NCAA, Nigerian Airspace Management Agency (NAMA), Accident Investigation Bureau (AIB) Nigerian Meteorological Agency (NiMET) and the Nigerian College of Aviation Technology (NCAT), Zaria.

NCAA gets 58% from the total 5% of charges, which is the major revenue earning for the agency, while the other four agencies share the remaining 42 percent in different proportions.

Besides, it was gathered that the airline had also submitted its tax and security clearance forms to the NCAA, after its initial reluctance to do so for about 10 months without any basic reason.

Tax and security clearance forms are two of the requirements for issuance of ATL or Air Operators Licence (AOC) or their renewals by NCAA.

Since the operations of the airline were suspended on Thursday, its management had held a series of meetings with the NCAA.