NIGERIA: Airlines Free To Determine Tariffs,Nigerian Civil Aviation Authority

The Nigerian Civil Aviation Authority (NCAA) has said all airlines' tariffs for services rendered, which include fares, rates, add-on charges or terms and condition of service, have been fully liberalised.

This was contained in a statement by the General Manager, Public Relations of NCAA, Mr. Sam Adurogboye, according to the News Agency of Nigeria (NAN).

The statement explained that this was to clarify reports in some sections of the media that the NCAA had authorised airlines to increase their fares.

According to the statement, air fares and sundry charges have been statutorily deregulated and subjected to market forces.

"However, all air carriers or their agents shall file, with the authority, a tariff for that service showing all rates, fares and add-on charges.

"These include the terms and conditions of free and reduced rate transportation for that service, as specified in Part 18.14.1.1 of the Nigerian Civil Aviation Regulations (Nig.CARs).

"They shall obtain approval from the authority to introduce and or increase add-on charges or surcharges such as fuel, internet booking, insurance, security and similar surcharges, prior to implementation," it said.

The statement said the section also requires all tariffs to be filed at least seven days before the rates come into effect, except in the case of matching an existing rate for which no prior notification was required.

"The NCAA will, therefore, approve the fares accordingly. Prior to the approval, all fares filed with the authority are subjected to Breakeven Analysis and this continues intermittently.

"This analysis is to curb anti-competitive pricing among airlines and to ensure that fares are not too low as to impact on safety arising from inability to carry out requisite maintenance onf their aircraft.

"On the other hand, NCAA will similarly intervene if the fares are too high to avoid overpricing that will deny the teeming passengers access to air transportation," it said.

According to the statement, the NCAA under Part 18.14.1.4, may sanction any airline for failing to apply the fares, rates, charges or terms and conditions of carriage set out in the tariff that applies to that service.

It said the airline would be directed to pay compensation for any expense incurred by a person adversely affected by its failure to apply the fares, rates, charges or terms and conditions set out in the tariff.

"Therefore, the NCAA wishes to advise all airline operators and stakeholders to discountenance the reports and continue to operate in an atmosphere of liberalisation and level playing field the Federal Government has put in place," it said.

AUSTRALIA: Tourism Industry Affected By Higher Passport New Airport Fee

Australian passports will rise in price by $20 from January 1, 2017.

TOURISM will generate hundreds of millions of dollars for the Federal Government through a range of budget initiatives that have disappointed industry members.

Although there are some positives for the “supergrowth sector” such as tax cuts for small business operators, tourism officials lamented the lack of measures to foster growth.

In a series of blows for the industry:

— the cost of an Australian passport will jump $20 from January 1, 2017 to $274 raising $173 million over four years

— trial visa arrangements for certain countries including a user-pays fast track service will raise $1.5 million over four years

— backpackers will pay 32.5 cents on every dollar earned in Australia from July 1

— airport operators will be charged a commercial fee to provide “premium border clearance services” for international air passengers, initially at Sydney, Melbourne and Perth Airports

— Tourism Australia’s funding trimmed to $140 million from $144 million

Australian Tourism Export Council Managing Director Peter Shelley said they were very disappointed the planned backpacker tax had not been wound back.

“We’ve been working with government to try to reduce the percentage (from 32.5) and we’ve seen no response to that in this budget,” said Mr Shelley.

“It’s not competitive with other countries and makes a working holiday in Australia much less attractive.”

Tourism and Transport Forum CEO Margy Osmond said she hoped successive budgets delivered an increase to Tourism Australia’s funding.

“We’re pretty disappointed there’s been no action on the Tourist Refund Scheme and the backpacker tax, and we will be pushing those arguments during the election campaign,” said Ms Osmond.

“Any increase in taxes on airports is not good news either but the concept of premium processing is a good one.”

On the upside, $26.2 million has been earmarked over four years to establish permanent border clearance services at Townsville and Sunshine Coast airports in Queensland.

The move should allow for regular international services out of the airports, that currently operate seasonal flights into either Bali or Auckland.

There is also $115.1 million over two years for works at the Western Sydney Airport site at Badgerys Creek.

The sum includes $26.2 million to “undertake concept design for the provision of rail services

through the site”.

Three states can also look forward to more money for projects that encourage tourists to visit a destination, such as the Melbourne Cricket Ground rooftop walk.

Almost a third of the $15.2 million “demand driver infrastructure fund” will go to New South Wales ($4.8 million), Queensland will score $2.9 million and Victoria $2.8 million.

Allocations for other states and territories will remain unchanged.