Friday, September 28, 2018

ON LICENCING AND OPERATIONS.

Hello and welcome to the blog!

Today, we shall be discussing the licensing requirements prior to operations in Nigeria.


I will like to point out that it is the Federal Government through the Ministry of Aviation and the Nigerian Civil Aviation Authority who are mandated to carry out this function.


There are also other Allied Agencies who work hand-in-hand such as the Corporate Affairs Commission for the incorporation of a company.




Just like commercial and corporate law requires, before any company can carry on business in Nigeria, whether for the realization of profit or not, it must be duly registered by the enabling authority which is the Corporate Affairs Commission.

In Aviation, this is also the legal standpoint; just with a slight difference on whom the registering authority is, which in this case is the Nigeria Civil Aviation Authority. Hence, the desire of this write-up to take us on the journey through air carrier operations, licensing and regulations.

We understand that some may be interested in starting an airline business in Nigeria, we have carefully selected to have airlines licencing spun over the next couple of weeks. So we can attend to all your questions and interests.


Firstly, it is noteworthy that in Nigeria, there are nationality requirements and restrictions regarding ownership of air carriers in Nigeria. Section 33(1) of the Civil Aviation Act provides that a "licence, permit, certificate or other authorization sought for the purposes of undertaking air transport will not be issued unless the applicant is a Nigerian citizen, or a company or body corporate registered in Nigeria with Nigeria as its principal place of business and controlled by Nigerian nationals."
However, this is without prejudice to the ability of foreign air operators from the Contracting States to the Convention on International Civil Aviation ( Chicago Convention) 1944 to operate in Nigeria in accordance with Part 10 of the Nigeria Civil Aviation Regulations. This is applauded, unlike the USA's strict regime.
Part 18 of the regulations provides that the majority shareholding of applicants for the air transport licence and airline operating permit must be held by Nigerians. Further, for foreign airlines applying to operate scheduled services into and out of Nigeria, majority ownership must be vested in the nationals of the state designating the airline.



Air carriers must have the following minimum paid-up share capital:
•           N500 million for carriers engaged in domestic operations;
•           N1 billion for carriers engaged in regional operations; and
•           N2 billion for carriers engaged in international operations.





Having laid the proper foundation, let’s get right to the focus of this paper. How to obtain an Air Carrier's certificate in Nigeria (AOC).








The procedural and documentary requirements an air carrier must meet in order to operate in Nigeria is firstly, to obtain the relevant license to engage in the air transport business.
Air carriers engaged in scheduled air transport between two or more states in Nigeria (domestic) must obtain an air transport license. An application for such a license is made to the director-general of the Nigerian Civil Aviation Authority and must contain certain particulars, including:
  • The type of air services to be provided;
  • The proposed operational base; and
  • The number and type of proposed aircraft to be used.
The documentary requirements include:
  • Duly completed application forms;
  • Certified true copies of its certificate of incorporation;
  • Particulars of directors;
  • Existing tax clearance certificates; and
  • Detailed business plans.
These steps have been summarized, however, I would be happy to expatiate should you have any questions. (You can also use the comment box).



In Nigeria, Air carriers providing non-scheduled or charter air services must hold an air transport license or airline operating permit. 

Before operation commences, license and permit holders must obtain an air operator certificate and meet certain requirements, including providing adequate insurance cover for passengers, cargo and third parties. Permit holders engaged in cargo operations must obtain Air Operator certificates from the Nigerian Civil Aviation Authority before operations commence.



Foreign airlines engaged in scheduled operations into and out of Nigeria must obtain a foreign carrier operating permit and be designated under an existing Bilateral Air Services Agreement between its government and Nigeria. 

At this juncture, I think it's imperative to mention that a designating State need not be the State of licence. It may also be the State of the principal place of business, the State who decides to designate the airline or the State of choice.



To obtain the AOC, the airline must submit the necessary supporting documents through diplomatic channels to the Nigerian Aeronautical Authority and fulfil Part 10 of the Nigerian Civil Aviation Regulations before the permit will be issued. The information and documents required include:
  • Details of the airline;
  • The airline’s aircraft documents (e.g, a certified true copy of a valid air operator certificate and associated operations specifications issued to the foreign air operator by the foreign authority, evidence of comprehensive insurance and a certificate of aircraft registration); and
  • The airline security manual.  
The image below contains a requirement for the U.S.



NOTE: 
Foreign airlines conducting non-scheduled (charter) operations into and out of Nigeria must obtain Nigerian Civil Aviation Authority flight clearance.


 Further, foreign airlines engaged in non-scheduled passenger operations must carry out operations in conjunction with a Nigerian Air Travel Organizer’s License holder. 


A foreign airline engaged in non-scheduled cargo operations into and out of Nigeria must obtain authority approval and pay a royalty.
Nigerian airlines on international routes must obtain an air carrier’s permit. 


For the collaboration on international best practice, in addition to obtaining safety certificates, Nigerian airlines on regional and international routes must also join the International Air Transport Association and its clearing-house and have adequate financial capability for such operations. 


In conclusion, an application for designation on international routes should be made in writing to the Minister of aviation and should contain particulars such as details of routes to be operated; the number and type of aircraft; and points of departure and entry into Nigeria. The supporting documents should include:
  • Certified true copies of the certificate of incorporation;
  • Certified true copies of the memorandum and articles of association;
  • A copy of a valid air transport licence; and
  • Details of insurance policies.


Thank you for taking the time to read and share this post. Should you have any questions, comments or suggestions, do not hesitate to use the comment box.

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