DEPARTMENT OF COMMERCIAL AND STATISTICS

The activities of the Department include 5% Ticket Sales Charge (TSC), Commercial, Economic Statistics, Billing Settlement Plan (BSP) and Flight Clearance. Due to the functions of the Department, it has representatives at all functional airports within the country, offices at all NCAA Regional offices and these activities are coordinated at the headquarters.

(a) 5% Ticket Sales Charge (TSC):

In line with the Civil Aviation Act 2006, the Authority is saddled with the collection of 5% sales charge on all tickets originating from Nigeria, cargo operations and charter/contract flights. The 5% Sales Charge after collection is shared with other aviation agencies namely: NAMA, NIMET, NCAT and AIB as approved by the Civil Aviation Act 2006. The Unit has its staff stationed at all functional airports where the system of data capturing is put in place to ensure accurate billing of airlines (both passengers and cargo operator).

(b) METHOD OF OPERATION:

The Unit uses flown coupons and passenger manifests to calculate the amount due to NCAA and other parastatals. The various sections involved in the process are the Operations Unit at the airport which is responsible for the collection, photocopying and batching of flight statistical data, which is then submitted to the Sorting Unit. This Unit separates the data into taxable and non-taxable. The taxable coupons are then forwarded to the Data Section for inputting into the system to generate bills. Before issuance, the Proforma Statement will be vetted by the Quality Control Officers who will cross check the details for errors, accuracy and authenticity before raising and dispatching invoices to the various airlines as well as the Finance and Audit Departments.

The Department has Ten (10) Units which carry out its various functions. The Units are:

• Commercial Unit
• Statistics Unit
• Fares and Tariff Unit
• Travel Agency Unit
• Cargo Unit
• International Operation Unit (MMIA)
• Domestic Operation Unit (MMA)
• Bill Settlement Plan (BSP) Unit
• Flight Clearance Unit; and
• Charter Unit.

The functions are as follows:

COMMERCAIL UNIT (HEADQUARTERS)

The Commercial Unit is saddled with the responsibility of collating data from the Regional Offices on the 5% Sales Charge (Billing is done through the Commercial Units at the Regional Offices while the duplicates of the bills are sent to the Headquarters Commercial Unit for further processing and documentation).
The Unit performs the following functions:

• Records and documents sundry charges collected by the Authority i.e. internally generated revenue by all Directorates e.g. Air Transport Licenses, Airworthiness, Personnel Licensing, Flight Operations etc.
• Carries out monitoring exercises on revenue generation and collection at the Headquarters and all Regions/ Stations;
• Stamps and disburses invoice booklets to the Regional Offices for billing;
• Participates in joint revenue drive with DFA; and
• Writes revenue generation reports monthly, quarterly and annually for Management consumption and further action.

Functions of the Commercial Units at the Regional Offices/Airports

• Monitoring the activities of airline operators and airport environment;
• Collection and collation of flown passenger coupons, e-tickets and manifests for billing of 5% sales charge;
• Distribution of bills to both foreign and domestic operators;
• Reconciliation of disputed bills through a meeting involving the airline, DATR, DFA and Audit staff at the Regional Office;
• Collection and collation of Client Service Invoices from contract/charter operators for billing; and
• Coordination and monitoring of the activities of the NCAA Cargo Concessionaire in respect of 5% Cargo Sales Charge.

STATISTICS UNIT

The Statistical Analysis Unit of the Directorate of Air Transport Regulation (DATR) is mandated to compel all Air Transport Operators to render statistical analysis of their monthly operations in a format prescribed by the Authority.

FUNCTIONS

The Unit performs the following functions:

• Collates and analyzes data from the industry with respect to the harmonized Nigerian Air Transport Statistics ATS 01/02, and NATS format for both domestic and foreign airline operations
• Publishes annual traffic movements on passengers and aircraft based on the Airlines Daily Route Records (ADR16), Flown Coupons and Airlines Manifests sources, as well as cargo data from cargo handling agents such as Nigerian Aviation Handling Company (NAHCO) and Skypower Aviation Handling Company Limited (SAHCOL)
• Forecasts short term future trends in the traffic movements
• Collates and forward statistical returns from domestic airlines and service providers, such as, FAAN and NAMA through the prescribed standard ICAO reporting forms to ICAO.

FARES AND TARIFFS UNIT

The Unit was created to ensure that Nigerian and Foreign carriers complied with section 30 (4)(d) of the Civil Aviation Act 2006. In carrying out the above mandate, the Unit performs the following functions:

FUNCTIONS

• Ensuring that every Nigerian and foreign carrier files with the Authority, tariffs showing all rates, fares ,government charges and any add-on charged by it.
• Making technical inputs on the issue of fares and tariffs for decision making.
• Monitoring e-tariff applications of qualified Nigerian carriers via the airline IATA e-tariff window.
• Ensuring that all airlines keep open for public inspection a ledger containing all tariff information in their offices and on their WebsiteMains.
• Ensuring that carrier(s) advertise their selling fares, inclusive of taxes and service charges.
• Monitoring and sanctioning airlines and allied service providers found to be engaged in unfair or deceptive practices for unfair method of competition in transportation.

TRAVEL AGENCY UNIT

The Unit was carved out of the Allied Services Unit so as to be able to monitor the activities of the Travel Agents with the commencement of the Billing Settlement Plan (BSP).

BILLS SETLLEMENT PLAN (BSP) UNIT

The Unit was created as result of the presence of IATA in Nigeria in 2008 to facilitate the take off the Bill Settlement Plan (BSP) for the industry in January 2009. In June 2009, the Unit commenced the billing of the 5% Ticket Sales Charge of all International Airlines via IATA BSP. Within the period, the Unit was able to achieve online, real time billing that eliminated airline indebtedness/delay in payment.

FUNCTIONS OF THE BSP UNIT

• Collation of monthly sales statistics and evaluation of same to indicate the trend of development in the country’s air transport sector;
• Monitoring of Global Distribution System (GDS) companies (sabre, Galileo, Worldspan, Amadeus e.t.c.) and their technical competence in connecting travel agencies to BSP;
• Monitoring of airlines that are participating in BSP and the consistency of their compliance with the procedure;
• Assisting domestic airlines, in liaison with other relevant agencies, to attain qualification for participation in BSP;
• Liaising with IATA and the Agency Unit to obtain information on remittance status and technical standard of travel agencies participating in BSP.
• Analyzing the impact of BSP on the local air travel sector;
• Liaising with other stakeholders for sustained training and public enlightenment on BSP.

INTERNATIONAL OPERATION UNIT (MMIA)

CARGO OPERATIONS UNIT

PREAMBLE: In line with the Federal Republic of Nigeria’s Official Gazette on Civil Aviation (Fees) (Amendment) Regulations 1990, Civil Aviation Act 2006 and Civil Aviation Policy 2001; the Cargo Unit of the Directorate of Air Transport Regulation is given the mandate for the collection of the 5% Cargo Sales and Royalty Charge.

FUNCTIONS OF THE UNIT:

• Monitoring the growth in number of airlines (scheduled and non-scheduled) participating in cargo operation both international and domestic.
• Reconciling the approved cargo tonnage in flight clearance with the actual cargo tonnage in manifest airlifted by airlines on import to determine variance in tonnage for 1 cent royalty charge.
• Reconciling the actual cargo tonnage captured with that of the air waybill tonnage airlifted on export to determine the billing of the 5% cargo sales charge.
• Analyzing the concessionaire (AIS LTD)’s collation on 5% cargo sales charge (CSC), excess baggage charge (EBC) and royalty charge (RC) on international and domestic operations to determine the revenue generation on airlines’ operation.
• Computing data on 5% cargo sales, excess baggage and royalty charge for Management’s decision making process
• Preparing periodic reports on cargo operations for onward submission to Management.
• Computing and recommending the value of 7.5% commission on 5% CSC, EBC and ROYALTY collections made by the Concessionaire (AIS Ltd) for onward payment by the Authority.
• General oversight functions and supervision of cargo operations to ensure compliance with the recommended standards.

CHARTER UNIT

The Unit has experienced tremendous improvement over the previous years in the areas of procedures for data capturing and revenue generation. The reasons for this improvement can be ascribed to the developments in the industry, increase of traffic and entrance of more airlines into the industry.

DUTIES OF OUT STATION OFFICERS OF THE DIRECTORATE OF AIR TRANSPORT REGULATION

These sets of officers at the outstations:

• Bill and reconcile the 5% Sales Charges on Tickets, Cargo, Charter and Contract Sales;
• Liaise with other Directorates in establishing new revenue sources and find new methods of improving revenue generation;
• Prepare periodic revenue reports for Management;
• Prepare statistical data for economic and statistical analysis of airline operations;
• Monitor service levels, charges and revenues of airport and air navigation;
• Carry out constant spot checks on airlines operations to ensure that the operations are in accordance with the provisions of their Licenses and Permits;
• Monitor the operations of Travel Agencies, Cargo Consolidators, Agents of Foreign Airlines, Training Institutions, Handling Companies and other service providers in the industry to ensure compliance with the regulations guiding their operations;
• Collate, appraise and prepare Management reports on monitoring activities carried out at all Regional Offices and their affiliate airports;
• Process flight clearances by domestic airlines for international charter operations
• Ensure the enhancement of facilitation at airports
• Ensure that passengers are provided with a prescribed minimum level of comfort both on ground and in-flight.