Trouble looms as helicopter operators dare FG's landing fee directives

AON rejects imposition of landing fees on helicopter operators

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As controversy rages on the appointment of a concessionaire, Naebi Dynamics Concepts Limited by the Federal Government to collect landing and take off fees from helicopter operators in the country, the latest indications have shown that the policy did not have the required legal status when it was announced.

According to arguments and counter arguments from interested parties, the policy which was introduced by the former minister of aviation, Senator Hadi Sirika in May 2021, lacked due diligence.

Naebi Dynamics through the government approvals has been given the exclusive rights to collect “Landing and Take-off Fee” from helicopter operators in Nigeria on behalf of the government.

The government through the present minister of aviation and aerospace development, Festus Keyamo had earlier  insisted that the introduction of the helicopter landing levies was in line with international best practices to enhance the quality of helicopter operations as a cost recovery measure.

Citing other climes like the United States,United Kingdom, India and other countries where such levies are charged, Keyamo declared: “Helicopter landing levies are commonplace in countries such as the United States, the United Kingdom, India, and various regions worldwide. For instance, Tallahassee International Airport in Florida began implementing helicopter landing levies under Vector Airport Systems since October 1, 2022. Helicopter landing levies are common across airfields in the United Kingdom, ranging from major commercial ones to small general aviation fields. Typically, helicopter levies match or exceed those for fixed-wing aircraft, varying based on factors like location and services provided.”

AON in a lengthy statement issued cited how the Nigeria Civil Aviation Authority (NCAA) had made it clear that there was neither legal framework nor legal

justification for it to introduce such fee, and that aside certification of helipads, most of which are privately-owned, and for which it charged certification fee, it did not provide any service to helicopter operators that would warrant the imposition of such fee. The AON in its reactions also added that “the Federal Airports Authority of Nigeria (FAAN) which manages airports also had neither legal framework nor justification to impose such a charge on helicopter landing and take-off other than at its airports, which helicopter operators pay just like other aircraft operators in Nigeria.

The Nigerian Airspace Management Agency (NAMA), one of whose functions under the NAMA Act is to provide the navigation services necessary for the operation of aircraft taking off and landing and integrate them into the overall air traffic within the Nigerian airspace, did not charge helicopter landing and take-off fee for helicopter landings on and take-off from, oil rig platforms, FSPOs and private helipads, because it did not provide any service in respect thereto to the operators.

“Section 7(1) (r) of the NAMA Act which was in force at the time is clear that NAMA shall charge fees only for the services provided by the Agency, and helicopter operators pay the air navigation charges as generated on monthly basis, just like every other aircraft operator in Nigeria. Also, ICAO Document 9082 permit the imposition of charges only for services provided and functions performed for civil aviation operations,” it said.

Despite the absence of any legal framework and justification for its imposition, and despite being so advised by the agencies, the AON lamented how the former Minister of Aviation, Sirika went ahead and approved the proposal for collection of Landing and Take-off Fee for all helicopters landing and taking off on and from oil fields/terminals/platforms/rigs/FPSOs, etc. and conveyed his approval for NAMA to engage and collaborate with Naebi Dynamic Concepts Limited for the collection of the fee/charge/levy.

“Consequent upon the approval and engagement, Naebi Dynamic Concepts Limited has been demanding payment of hundreds of thousands of dollars from already overcharged helicopter operators as Landing/Take-off Fee for landing on and taking off from oil rig platforms and private helipads without providing any service whatsoever to the operators.”

The AON  through its spokesperson, Professor Obiora Okonkwo while referring to the recent notice by the present minister, Keyamo to all operators and stakeholders of civilian helicopter operations in Nigeria to pay the levy or face sanctions, has rejected the imposition of the Helicopter Landing and Take-off Fee due to reasons.

According to Okonkwo, the AON has rejected the policy due to the fact that: “NAMA does not provide any additional service to helicopter operators to justify the imposition of the fee at all helipads, oil rig platforms, FSPOs, FSOs, etc. in Nigeria.”

The approval and imposition of the Helicopter Landing and Take-off Fee at private helipads, oil rig platforms, FSPOs, FSOs etc. when no service is provided at those locations to the helicopter operators by NAMA is contrary to the provision of section 7 (1) (r) of the then applicable NAMA Act as well as to section 1, paragraph 2 (1) of ICAO Document 9082.

 

 

 

“NAMA did not adhere to the policies, principles and guidelines contained in ICAO Documents 9082 (ICAO’s Policies on Charges for Airports and Air Navigation Services) and 9161 (Manual on Air Navigation Services Economics) before imposing the Helicopter Landing and Take-off Fee. Part 18, section 18.8.1.1 (e) of the Nigeria Civil Aviation Regulations require NAMA to adhere to the policies, principles and guidelines contained in those documents.

“NAMA did not obtain the approval of NCAA before imposing the new fee/charge/levy. Part 18, section 18.8.1.1 (b) of the Nigeria Civil Aviation Regulations require NAMA to obtain the approval of NCAA before imposing any new charges and fees for its services. NCAA has the statutory power to regulate the charges that may be made in respect of air traffic control and for the use of aerodromes and for services provided at such aerodromes.

NAMA did not consult the helicopter operators and other stakeholders before imposing the Helicopter Landing and Take-off Fee. Part 18, section 18.8.1.1 (d) of the Nigeria Civil Aviation Regulations require NAMA to adhere to the principles and procedures of consultation with users, cost-relatedness, non-discrimination and transparency in the application of charges and fees.

The Fee is charged and demanded for in US Dollars contrary to the provision of section 15 of the Central Bank of Nigeria Act, which is clear that the unit of currency in Nigeria shall be the Naira.

“There is nowhere in the world where the Air Navigation Service Provider does not provide any service to helicopter operators but charges landing and take-off fee for landings and take—off on and from private helipads, oil rig platforms, FSPOs, FSOs, etc. The examples given by the Ministry of Aviation and Aerospace Development in the Press Release of 13th May 2024 of where landing and take-off fee is paid are all of airports.

“The engagement of Naebi Dynamic Concepts Limited did not follow due process as it did not comply with the requirements of the Public Procurement Act for the procurement of the services of consultants”.

The recent suspension of the collection of the fee according to the AON was the fall out of an earlier meeting held between the operators and the minister.

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