The federal government is considering a proposal that would allow domestic airlines to settle their outstanding debts to aviation agencies through future ticket sales instead of paying cash upfront.

The idea was put forward by QuickAir Networks Limited during a presentation to ministry officials.

The proposal was presented on July 22 after the company was invited to discuss its “National Ticket-for-Cash Aviation Revenue Recovery Programme.”

Under the plan, airlines would set up digital wallets equal to the value of the debts they owe bodies such as the Nigerian Civil Aviation Authority, the Nigerian Airspace Management Agency, and the Federal Airports Authority of Nigeria.

The funds in those wallets would then be turned into seat inventory and sold through QuickAir’s platform to travel agencies, companies, and government institutions. The money generated from the sales would be used to clear the airlines’ unpaid obligations.

Segun Oyebolu, who led the presentation, said the arrangement would give airlines a more flexible option at a time when high operating costs are putting pressure on their finances. He added that the system would only work if airlines stop piling up new debts, and proposed an automated process that deducts government charges as tickets are sold online.

The company demonstrated its ticket distribution and settlement platform, which it claims can link up with Nigeria’s 14 active domestic airlines. QuickAir’s chairman, Suleiman Ibrahim, said the firm is ready to put the infrastructure in place once the Airline Operators of Nigeria agree to the plan, with the aim of reducing the recurring money disputes between the government and carriers.

Photo credit: The Cable