Airline, Aviation

Airline battling with AOC renewal in financial embarrassment

Chairman of TAL,
Emperor Baywood Ibe

 

A Lagos-based non-scheduled domestic airline, Tropic Arctic Logistics (TAL), requesting Nigerian Civil Aviation Authority (NCAA) to renew or extend  its Air Operator Certificate (AOC), is embroiled in a very serious financial embarrassment.

The alleged financial embarrassment came to light following the inability of the management of TAL to liquidate a debt of N1,500,000.00 (One Million Naira Only)  being balance of the cost of consultancy service allegedly rendered to it by an aviation consulting firm, Turtle Consulting.

Documents at the disposal of the African Business Travel News (ABTN) alleged that TAL awarded a consultancy job to Turtle Consulting Limited at the sum of three million naira only (N3,000,000.00).

The letter of contract award dated April 23, 2021, by TAL signed by the Group-General Counsel, Maureen A. Ujah, and directed to Turtle Consulting and Chief Executive Officer of the firm, Dr. Daniel Young, entitled, “Mandate to provide initial airline business take-off requirements and support services read in part, “Sequel to your letter to our President/CEO, dated April 21, 2021, we are pleased to award the contract for the provision of the consultancy services stated in your proposal at the agreed fee N3, 000, 000.00 (Three Million Naira Only)”.

“However, TAL requests under the Airport Terminal Branding (Sub-head number 3 ) the services  to be provided to include but not limited to:

(1)     Rate per square meter per office space or stand and other associated and ancillary fees from FAAN at various airports.

(2)    Unit charge on cargo per kilogramme in US dollar and Naira

(3)    Details of cargo comprising allowable check-in and carry-on luggage weight, the volume of cargo per day, and the cumulative weekly volume of cargo

Despite execution of the contract to the letter, TAL paid only half of the contract sum; remaining a balance of One million and Five Hundred thousand naira only (N1,500,000)

Turtle alleged that all efforts made to the Chairman and management of the airline to reach an agreement on offsetting the debt were rebuffed by the chairman of TAL, Emperor Baywood Ibe who allegedly used unprintable words on the promoters of the consulting firm.

To further persuade management of TAL to offset the debt, promoters of Turtle Consulting  approached some notable stakeholders in the aviation industry in Nigeria to prevail on the airline to  balance its debts.

But rather than yielding to the pleads from the stakeholders, the management  of the airline was alleged of threatening  to deal with the promoters of the consulting firm.

But when ABTN contacted one of the directors of TAL, Mr Femi Adeniji  on the issue, he denied knowledge of the contract.

” I don’t have the knowledge of TAL owing Dr  Young’s company.  It is  embarrassing. I am going to take a legal action against the media house that published the story,” Adeniji said.

Adeniji who also threatened legal action against any media organization which dare publish the reports of the indebtedness of TAL to Turtle, however promised to get back  to our correspondent with more details after he was confronted  with statements from stakeholders who intervened at resolving the issue.

“I will get back to you soon with details. I am in Moscow  as I talk with you, I am not in Nigeria,” he promised.

Adeniji didn’t fulfill his promise as at the time of filling this report.

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