Airline operators, others sue NCAA over Nigeria Air Project
By Seun Ibiyemi
The Airline Operators of Nigeria (AON) and five other plaintiffs have sued the Nigeria Civil Aviation Authority (NCAA) over the alleged plan to issue Air Operator Certificate (AOC) to Nigeria Air despite the impending court case at the Federal High Court sitting in Lagos over the matter.
The plaintiffs, AON, Azman Air Services Limited, Air peace Limited, Max Air Limited, United Nigeria Airlines, and TopBrass Aviation Limited, have warned the NCAA from relating with the minister of aviation, ministry of aviation, or their representatives on the issue, pending when the issue is determined by the court.
There have been allegations by the AON that the Federal Government had granted Ethiopian Airlines (ET) in its Commercial and Strategic Plan 15 years tax moratorium for it to partner with the government on Nigeria Air.
The Airline Operators of Nigeria (AON) and five other plaintiffs have sued the Nigeria Civil Aviation Authority (NCAA) over the alleged plan to issue Air Operator Certificate (AOC) to Nigeria Air despite the impending court case at the Federal High Court sitting in Lagos over the matter.
AON in a suit filed by its lawyers, Nureini Jimoh Chambers, dated April 19, 2023, addressed to the Director-General Civil Aviation (DGCA) and obtained by Nairametrics, said issuing of AOC to the troubled national carrier, Nigeria Air would be in flagrant disobedience of the court order, which restrained it from doing so, pending the determination of the injunction filed against it by the operators.
The plaintiffs, AON, Azman Air Services Limited, Air peace Limited, Max Air Limited, United Nigeria Airlines, and TopBrass Aviation Limited, also warned the NCAA from relating with the minister of aviation, ministry of aviation, or their representatives on the issue, pending when the issue is determined by the court.
The plaintiffs told the DGCA that the issue was already at the Federal High Court sitting in Lagos and presided over by Hon. Justice A.L. Alagoa who granted Orders of interim and interlocutory injunctions, which restrained the parties involved from going ahead with the project.
The suit read in part
You are therefore notified to desist from dealing with the minister, the Federal Ministry of Aviation, and/or their agents, privies, or representatives, pertaining to the Air Operator Certificate (AOC), the subject matter of the suit, to avoid consequences of disobedience of Court Orders.
“As a law-abiding regulatory agency, you are under the watchful eyes of the world and it is in your interest to desist from any further action on the AOC process that will ridicule the integrity of the agency before the local media and as well as the global aviation community.”
The suit was received by NCAA on April 20, 2023.
Also attached to the suit are the other court suits challenging the establishment of the airline.
The AON and other plaintiffs had on November 19, 2022, called on the court to look at the extant laws and interpret such to know if the processes following the planned rebirth of a new national carrier for the country were not in violation of the law of the Federal Republic of Nigeria.
There have been allegations by the AON that the Federal Government had granted Ethiopian Airlines (ET) in its Commercial and Strategic Plan 15 years tax moratorium for it to partner with the government on Nigeria Air.
AON had insisted that the granting of 15 years moratorium negated the level playing field for all players as craved.
Also, the government agreed to facilitate the expansion of funding or incentive programs within Nigeria to accommodate the national carrier where the airline (Ethiopian Airlines) would not be ordinarily qualified for access to such funding or incentive programs.
The government in the draft agreement with the airline, also said it would provide its support to the national carrier in accessing funding and incentive programs as may be available to support the business objectives existing prior to and after the commencement of operations to encourage the undertaking and performance of the national carrier business objectives.
The document, in its Taxation Assumption on page 43, stated that no formal analysis had been carried out on the airline’s tax position, saying that for the purpose of this document, it assumed that there were no withholding taxes on interest payments, insurance premiums, and dividends to shareholders.
Also, the Federal Government and Ministry of Aviation had sought the transfer of the case to the Federal High Court – Abuja Judicial Division from Lagos.
An affidavit in support of the motion on notice sworn to by Des-Bordes Felicia, the counsel to the defendants; Nigeria Air (1st defendant), Sen. Hadi Sirika (3rd defendant), and Attorney General of the Federation (4th defendant), argued that hearing of the suit in Lagos would add financial burden on the defendants.
