Nigeria’s NCAA Reviews Airline Refund Penalty Appeals
Airlines recently fined by the Nigeria Civil Aviation Authority (NCAA) are now seeking meetings with the regulator to present evidence that they have resolved the passenger refund issues which led to the penalties. Michael Achimugu, the NCAA’s Director of Consumer Protection and Public Affairs, confirmed to ch-aviation that affected carriers have the option to either pay the fines or appeal the decisions.
In a move indicating a shift toward dialogue rather than immediate sanction enforcement, Achimugu noted that some airlines have proactively reached out to schedule meetings with the regulator. These discussions aim to review evidence of corrective measures implemented by the carriers. The NCAA clarified that immediate payment of the fines is not expected while these meetings and potential appeals are underway, indicating a more measured regulatory approach.
Back in December, the NCAA imposed fines on five airlines—Royal Air Maroc, Ethiopian Airlines, Arik Air, Air Peace, and Aero Contractors—following consumer complaints over delayed refund payments to passengers. These penalties were part of a broader crackdown aimed at enforcing consumer rights in the aviation sector, particularly in ensuring timely ticket refunds. The regulator’s action reflected its commitment to safeguarding passenger interests amid ongoing challenges with refund processing delays.
Among the affected airlines, Aero Contractors has been notably vocal about the situation. CEO Ado Sanusi urged the NCAA to adopt a more collaborative approach rather than imposing sanctions without prior discussion. In a statement provided to ch-aviation, Sanusi emphasized the need for balanced solutions that consider both consumer protection and the operational realities faced by airlines. He argued that while refund delays are a concern, the process of ticket refunds involves stringent protocols to prevent fraud and ensure accurate verification, particularly for credit card transactions.
Sanusi stated, “Aero Contractors remains committed to improving its refund process. We acknowledge there are areas for improvement and are actively working to digitalise our refund system to enhance efficiency and minimise delays. However, ticket refunds in the aviation industry follow strict protocols to prevent fraud and ensure proper verification. These processes, though sometimes time-consuming, are necessary to protect both passengers and the airline.” His remarks highlight the challenges airlines face in streamlining refund processes while maintaining robust security measures.
The NCAA’s decision to allow airlines the opportunity to present evidence of resolution signifies a potential pivot towards more constructive engagement. By opening a dialogue with the penalised carriers, the regulator appears to be considering the operational challenges that the industry contends with. This could lead to adjustments in how sanctions are enforced, with a greater emphasis on cooperation and remedial actions rather than immediate financial penalties.
ch-aviation has reached out to all the affected airlines for comments regarding their ongoing discussions with the NCAA. The outcomes of these engagements could have wider implications for industry practices, potentially encouraging carriers to invest in enhanced refund management systems and adopt more efficient digital processes.
As the NCAA continues its review of the case and the broader issue of delayed refunds, both regulators and airlines are expected to work together to find solutions that better balance consumer protection with the realities of airline operations. This collaborative approach could ultimately lead to improved customer service standards across Nigeria’s aviation sector, fostering greater trust among passengers and contributing to a more resilient industry overall.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com