Posted By Lateef Lawal
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| Going, Going,Going !!! |
The aircraft were repossessed, it was learnt due to the inability of the management of the airline to honour the monthly financial agreement it entered into with the lessor.
It could be recalled that two weeks ago the airline’s operations were grounded by the Nigerian Civil Aviation Authority(NCAA) over its insolvency problems which could impact on safety if steps were not taken to temporarily ground its operations so as to address all the lingering debt issues especially to service providers, staff salaries, fuel marketers, maintenance firms and non-remittance of taxes to the Federal Inland Revenue Service(FIRS) among others.
A fortnight ago, officials of FIRS had stormed the premises of Air Nigeria and effected the arrest of the Managing Director,Kinfe Kassaye over the airline's persistent refusal to remit taxes due to the government and subsequently filed a suit at the Federal High Court, Abuja against the airline and its top management.
The FIRS had claimed in the suit that between, January -December 2008, Air Nigeria failed to deduct Value Added Tax (VAT) amounting to the sum, (N633, 548,119.00k). Between January -December 2009, outstanding VAT: (N1, 265,537,250.00k); 2010: (N1, 516,582,660.00k).
Air Nigeria, failed to file Annual returns for 2011 and 2012 as prescribed by Section 55 (1) of the Companies Income Tax Cap C21 Laws of the Federation of Nigeria 2010.
Outstanding Withholding Tax between January-December 2006, against Air Nigeria totals (N394, 165,820.00k). This represented 10% of payments for direct services to Air Nigeria.
This offence contradicts Regulation 5 of the Companies Income Tax (Rates, etc, of Tax Deducted at Source (Withholding Tax) Regulations Cap. C21, Laws of the Federation of Nigeria 2004 Outstanding Withholding Tax against Air Nigeria, between January and December 2007 is (N775, 207,713.00k).
In January this year, Air Nigeria presented a counterfeit Companies Income Tax Clearance Certificate purportedly issued by the FIRS, in favour of Air Nigeria Development Company Ltd.
This TCC was presented to the Interior Minister to, inter-alia renew quota positions for Twenty (20) Pilots and Ten (10) others.
Documents in possession of the FIRS show that Air Nigeria submitted a counterfeit seal of the FIRS on a Companies Income Tax Clearance Certificate purportedly issued by the FIR.
Last week Monday,Air Nigeria, sacked 12 pilots and engineers that associated themselves with National Association of Aircraft Pilots and Engineers (NAAPE).
The decision to sack the technical staff was reportedly connected with the role they played in recent strike, which the pilots and engineers embarked upon since recently and backed by their national body, NAAPE.
Pilots and Engineers in Air Nigeria had embarked on strike on June 1 2012 over: Delayed salaries of both local and foreign staff, Pension deduction not remitted for over seven (7) months, Tax refund and tax clearance issues, Co-operative deductions not yet remitted, Staff travel unresolved and Engineering tier system still pending.
The FIRS had claimed in the suit that between, January -December 2008, Air Nigeria failed to deduct Value Added Tax (VAT) amounting to the sum, (N633, 548,119.00k). Between January -December 2009, outstanding VAT: (N1, 265,537,250.00k); 2010: (N1, 516,582,660.00k).
Air Nigeria, failed to file Annual returns for 2011 and 2012 as prescribed by Section 55 (1) of the Companies Income Tax Cap C21 Laws of the Federation of Nigeria 2010.
Outstanding Withholding Tax between January-December 2006, against Air Nigeria totals (N394, 165,820.00k). This represented 10% of payments for direct services to Air Nigeria.
This offence contradicts Regulation 5 of the Companies Income Tax (Rates, etc, of Tax Deducted at Source (Withholding Tax) Regulations Cap. C21, Laws of the Federation of Nigeria 2004 Outstanding Withholding Tax against Air Nigeria, between January and December 2007 is (N775, 207,713.00k).
In January this year, Air Nigeria presented a counterfeit Companies Income Tax Clearance Certificate purportedly issued by the FIRS, in favour of Air Nigeria Development Company Ltd.
This TCC was presented to the Interior Minister to, inter-alia renew quota positions for Twenty (20) Pilots and Ten (10) others.
Documents in possession of the FIRS show that Air Nigeria submitted a counterfeit seal of the FIRS on a Companies Income Tax Clearance Certificate purportedly issued by the FIR.
Last week Monday,Air Nigeria, sacked 12 pilots and engineers that associated themselves with National Association of Aircraft Pilots and Engineers (NAAPE).
The decision to sack the technical staff was reportedly connected with the role they played in recent strike, which the pilots and engineers embarked upon since recently and backed by their national body, NAAPE.
Pilots and Engineers in Air Nigeria had embarked on strike on June 1 2012 over: Delayed salaries of both local and foreign staff, Pension deduction not remitted for over seven (7) months, Tax refund and tax clearance issues, Co-operative deductions not yet remitted, Staff travel unresolved and Engineering tier system still pending.
GECAS, it was gathered last night, had written to the management of Air Nigeria and copied the NCAA on the airline default in payment and its plan to terminate the lease agreement and repossess the 4 aircraft leased to the company.
The embattled airline had been having running battles with both workers and regulators. It had not operated flight operations for its domestic and regional route for more than a month.
The NCAA, it was gathered has had an emergency meeting with Air Nigeria on June 11, 2012, to discuss moves by GECAS and Shannon Engine Support (both lessors to Air Nigeria) to repossess their four B737-300 aircraft and four CFM56-3C1 engines respectively.
On the 25th June,2010 this medium disclosed that there were indications that Air Nigeria’s lessors are about to repossess especially the 4 B737-300 aircraft in its fleet due its non-payment of accumulated monthly rentals
The airline currently has 11 aircraft, made up of two E-190,5B737-300 and four B737-400 and an A330 leased for its London operation from Egypt Air.
At the sideline of the just concluded African Aviation 'Air Finance' conference in Johannesburg, South Africa, it was gathered that one of the airline's lessor, General Electric Capital Aviation Services(GECAS), was reviewing the financial exposure of the airline and have concluded plans to recall its five B737-300.
The lessor, according to statements credited to the Aviation Ministry indicated that the airline had been defaulting in the prompt payment of its fleet lease rentals and is therefore auditing the finances of the airline.
Nigeria is a signatory to the Cape Town convention which make a lessor able to recover its aircraft without let and hindrance if it believes an airline is continually incapable of payments.
The lease rentals for the B737-300 is $181,000 for an aircraft.
The airline, then known as Virgin Nigeria had negotiated down ward the lease rental of each B737-300 to $120,000. It then had 5B737-300 and two E-190's.
The airline is still operating to London. Analyst said this is in view of the fact that the wide body A330 being used is on an ACMI bases from Egypt air. In aviation parlance an ACMI indicates that the lessor provides the Aircraft, Crew, Maintenance and Insurance(ACMI) cover for an aircraft.
But Air Nigeria performs poorly on their load factor(passengers carried) on the London route. The average number of passengers in business class on the route oscillates between 5 and 9. The seat capacity is 44.
The NCAA, it was gathered has had an emergency meeting with Air Nigeria on June 11, 2012, to discuss moves by GECAS and Shannon Engine Support (both lessors to Air Nigeria) to repossess their four B737-300 aircraft and four CFM56-3C1 engines respectively.
On the 25th June,2010 this medium disclosed that there were indications that Air Nigeria’s lessors are about to repossess especially the 4 B737-300 aircraft in its fleet due its non-payment of accumulated monthly rentals
The airline currently has 11 aircraft, made up of two E-190,5B737-300 and four B737-400 and an A330 leased for its London operation from Egypt Air.
At the sideline of the just concluded African Aviation 'Air Finance' conference in Johannesburg, South Africa, it was gathered that one of the airline's lessor, General Electric Capital Aviation Services(GECAS), was reviewing the financial exposure of the airline and have concluded plans to recall its five B737-300.
The lessor, according to statements credited to the Aviation Ministry indicated that the airline had been defaulting in the prompt payment of its fleet lease rentals and is therefore auditing the finances of the airline.
Nigeria is a signatory to the Cape Town convention which make a lessor able to recover its aircraft without let and hindrance if it believes an airline is continually incapable of payments.
The lease rentals for the B737-300 is $181,000 for an aircraft.
The airline, then known as Virgin Nigeria had negotiated down ward the lease rental of each B737-300 to $120,000. It then had 5B737-300 and two E-190's.
The airline is still operating to London. Analyst said this is in view of the fact that the wide body A330 being used is on an ACMI bases from Egypt air. In aviation parlance an ACMI indicates that the lessor provides the Aircraft, Crew, Maintenance and Insurance(ACMI) cover for an aircraft.
But Air Nigeria performs poorly on their load factor(passengers carried) on the London route. The average number of passengers in business class on the route oscillates between 5 and 9. The seat capacity is 44.
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