GUIDELINES AND REQUIREMENTS FOR GRANT OF AIR TRAVEL ORGANISERS’ LICENCE (ATOL)


GUIDELINES AND REQUIREMENTS FOR GRANT OF AIR TRAVEL ORGANISERS’ LICENCE (ATOL)

1. GENERAL

(i) Application for the grant of an Air Travel Organiser’s Licence (ATOL) shall be made in writing to the Director General, Nigerian Civil Aviation Authority (NCAA).

(ii) The application shall be signed by a person duly authorized by the applicant.

(iii) The application shall be submitted to the Director-General, Nigerian Civil Aviation Authority on or before a date not less than six (6) months to the expected date of utilization of the ATOL.

2. REQUIREMENTS

(i) The application for the grant of ATOL should contain the following information:

(a) Types of Travels/Tours

(b) Principal Catchment Areas

(c) Principal Destination(s)

(d) Flight Arrangement(s)

(ii) The following supporting documents are required for processing the application: ;

(a) Four(4) copies of certified true copy the Certificate of Incorporation of the Company

(b) Four(4) copies of certified true copy of:

(i) the Memorandum and Articles of Association;

(ii) Particulars of the Directors of the Company (Form CAC7);

(iii) Statement of Share Capital/Return of Allotment (Form CAC2) with minimum PAID-UP share capital of five million (N5,000,000.00) Naira.

(c) Four(4) copies of the current Tax Clearance Certificates of the Company and each of the Directors (originals should also be submitted for sighting);

(d) Performance Bond of N7.5 million from a Bank or Insurance company. The Bond should cover the two (2) year validity period of the ATOL when issued (sample attached);

(e) An Audited Statement of Accounts for the last three (3) years for an existing company or certified opening balance sheet in case of new business;

(f) Publication of Notice of the application in two (2) national daily newspapers. The publication should contain information on the application submitted to the Authority for the grant of an ATOL (sample attached);

(f) Receipt of payment of N500,000 non-refundable processing fee to the Nigerian Civil Aviation Authority.

3. VALIDITY OF LICENCE The validity of an ATOL shall be for two (2) years with effect from the date of issuance.

4. ADDITIONAL REQUIREMENTS FOR MULTIPLE FLIGHTS. An ATOL holder wishing to carry out series of holiday packages at a particular time over a period of two (2) weeks or more such as Umrah, Hajj Christian pilgrimage, etc in addition to the initial N7.5 million Bond earlier submitted during the processing of its ATOL, will be required to produce a Bank/Insurance Bond based on 15% of forecast turnover. This means that the value of the Bond to be submitted to NCAA before the operation shall be 15% of the expected gross revenue from the passengers/pilgrims to be carried. NIGERIAN CIVIL AVIATION AUTHORITY Form ATOL

1 Application No:……………………………………….. Date Issued…………………………………………….. Signature of Issuing Officer:………………………… APPLICATION FOR GRANT OF AN AIR TRAVEL ORGANISER’S LICENCE (ATOL) Note: Before completing this form, applicant should refer to the guidelines/requirements for grant of Air Travel Organiser’s Licence for guidance.

1. Name: (Block Letters):……………………………………………………………................

2. Trading Name if different from

(1):.………………………………………………………. …………………………………………………………………………………………………

3(a) Registered Office:............................ (b) Telephone No:………………………. ............................................................ Mobile:…..…………………………… ............................................................ Fax:…..……………………………….. …………………………………….. Website Address…………………….

4. Address of Correspondence Tel. No:………………………. .......................................................... Mobile:…..…………………………… ............................................................ Fax:…..……………………………….. …………………………………….. E-mail:...………………………………

5. Amount paid as processing fee and Receipt No:………………………………………...

6. DETAILS OF THE COMPANY: (i) Company Registration No:………………………………………………………… (ii) Date and Place of Incorporation: …………………………………………………. ……...……………………………………………………………………………… (iii) If a subsidiary of another Company, the name and address of: (a) the Parent Company: ……...……………………………………………….. (b) the ultimate holding Company: …………………………………………... (iv) The name(s) and Address(es) of any subsidiary companies and where incorporated: ……...………………………………………………………………… …………………………………………...………………………………….................

7. FINANCIAL RESOURCES (i) Overdraft facilities available (if any):...…................................................................ (ii) Banker: ………………………………………………………………………………. (iii) Security given for the overdraft(s) (if any)……...................................................... (iv) Details of Contingent liabilities (if any)……........................................................... ………………………………………………………………………………………… 8. NATURE OF BUSINESS

(i) Brochure Information: Applicant should enclose if available a copy of each type of draft brochure and booking form for the proposed licensable business.

(ii) The applicant should state:

(a) Principal catchment areas e.g. Lagos metropolis, students, whole of Nigeria:………………………………………………………………………. ………………………………………………………………………………… (b) Principal destinations: ……………………………………………………... …………………………………………………………………………………

(c) Flight arrangements, e.g. whole plane charter, split charter etc………...........................................................................................................

(d) Expected source of seats, e.g. name of airline, name of ATOL holder:... …………………………………………………………………………………

(e) Type of travel, e.g. summer, Xmas/Hajj operation, school travel, special event, etc:…………………………………………………………….

(f) Surface accommodation offered e.g. Hotels, Villas, self catering transportation, minimum accommodation etc:………………………….. …………………………………………………………………………………

(g) Details of price guarantee:…………………………………………..

 

(iii) The applicant should state if he intends to contract for more airline seats than those to be authorized by his Licence. Yes/No If Yes please give details of the number of seat which are to be re-sold and to whom they are to be sub-chartered.

(iv) IATA Agent? Yes/Not/Applied.

(v) Agents: The applicant should give the name(s) and address(es) of all agents who produce their own brochure and/or who intend to organize air travel on behalf of the applicant using the applicant’s ATOL. A copy of the agency agreement with any such agents should be enclosed, together with a booking confirmation and advertising material: ................................................... ………………………………………………………....................................................

9. ANALYSIS OF TURNOVER

Col 1: Turnover in latest financial year for which audited accounts are being provided

Col 2: Projected turnover in following financial year Turnover N/N000S

1 Audited Financial Year Ended ……………

2 Projected Financial Year Ended …………… REPORTED AGAINST YOUR LICENCE OTHER TURNOVER - RETAIL (i.e. you act as agent Gross Commission Earned - Seat Sales to ATOL Holders - Other Activities (Please Specify) TOTAL TURNOVER Comments:

(ii) Balance Sheet as at………………………………………………………………….. Are there any brochure costs or other intangibles (e.g. advertising costs, refundable bond deposits) carried forward in debtors/prepayments? If so, how much? N………………… What are they:……………………….. 

(iii) Financial year end of applicant (i.e. month):……………………………………...

10. BOND All Licenses are subject to the condition that the holders have entered into satisfactory arrangements whereby sum of money will, in the event of failure, become available for the purpose of repatriating stranded passengers and reimbursing clients that have paid, in whole or in part, for a flight or a holiday that have not yet taken place. This bond is usually calculated at 15% of estimated licensable turnover. Existing Licence holders may apply for a reduction to 10% when they have established a successful track record, which the Authority would normally regard as two years profitable trading. A particular amount and type of bond may however be specified by current regulations.

(i) Amount of Bond The applicant should state the total amount of an existing/expected bond(s) and the obligor’s name(s). TYPE OF BOND EXISTING BOND VALIDITY OF BOND EXPECTED BOND VALIDITY OF BOND AMOUNT (N) OBLIGOR AMOUNT (N) OBLIGOR

(ii) Bond Security (not insurance) Please indicate how any bond(s) is/are or will be secured by the Obligor (a) Fixed cash deposit. Please specify amount N……………………………

(b) Specific charge cover fixed assets. Please specify:

(c) Floating charge over fixed assets

(d) Other. Please specify.

(iii) Insurance Bonds: If it is expected that the Obligor for any bond will be an insurance company:

(a) How much will be the deposit? N………………………………

(b) What will be the premium? N………………………………

(c) How much of the premium and/or Deposit will be refundable N………………………………

(d) What security, if any, will be required? Please specify:

11. REPORT AND ACCOUNTS

(i) The applicant should enclose a copy of the most recent annual report and statutory accounts.

(ii) Applicant should enclose the latest audited accounts, consolidated where possible, for a parent or any associated company whose finances are liked with his own.

(iii) If the accounts provided do not include a detailed profit and loss account and do not show the total company turnover then this information should be provided separately.

12. THE LICENCE The applicant should give the total gross revenue expected to be derived from the use of the Licence (if granted in the terms applied for) during the 12 months’ period from the date it takes effect and state the corresponding number of one-way seats he expects to sell, in addition, an estimate should be given of the gross revenue of one-way seats expected to be derived in each quarter year.

APRIL-JUNE 20.….

JULY-SEPT, 20…...

OCT-DEC, 20…..

JAN-MAR, 20….

TOTAL Quarterly Gross Revenue Quarterly One-Way Seat Average Price 

CERTIFICATE

I, THE UNDERSIGNED, HEREBY DECLARE THAT TO THE BEST OF MY KNOWLEDGE AND BELIEF THE FOREGOING PARTICULARS ARE TRUE AND COMPLETE AND THAT THERE HAVE BEEN NO CHANGES IN THE FINANCIAL RESOURCES, OWNERSHIP AND CONTROL OF THE BUSINESS OTHER THAN THOSE NOTIFIED IN THIS FORM.

SIGNATURE…………………….…………..

SIGNATORY’S NAME (IN BLOCK LETTER)…………………………………………………… ON BEHALF OF.……………………………………………………………………………………. OFFICIAL POSITION…….………………………………………………………………………… DATED THIS…………………….……….DAY OF.……………………………….20…………… (This form must be signed by a duly authorized officer who should state his official position) This form should be returned to:

The Directorate of Air Transport Regulation Air Transport Operations Department Licensing Unit, NCAA. Form ATOL 2 Application No:……………………………………….. Date Issued…………………………………………….. Signature of Issuing Officer:………………………… APPLICANT’S UNDERTAKING Note: This Form should be signed by an Accountable Officer i.e. that exercises both financial and operational control in the applicant-company. CONDITIONS OF AIR TRAVEL ORGANISER’S LICENCE (ATOL) I ………………………………………………… on behalf of …………………………………… hereby agree to comply with the under listed conditions if my application for an Air Travel Organiser’s Licence is granted:

(a) Ensure all international tour services that are operated leave and enter Nigeria through Customs Airports.

(b) Seek prior permission of the NCAA and appropriate aeronautical authorities of the foreign countries concerned before any flight outside Nigeria is undertaken.

(c) Ensure the aircraft operated must be in accordance with the laws, regulations and rules in force in Nigeria as well as the Standards and Recommended Practices (SARPs) of ICAO.

(d) Ensure payment of staff salaries as and when due.

(e) Ensure payment of aviation charges including 5% Charter, Contracts Sales Charges as and when due.

(f) Ensure the submission of monthly statistical returns, of all flights undertaken during the preceding month, to the Federal Ministry of Aviation or NCAA not later than 15th day of the following month and shall include the following particulars:

(i) Date(s) of flight

(ii) Points between which the flights were conducted

(iii) Number of passengers

(iv) Fares and other charges

(v) Particulars of the aircraft employed and the name of the owner/operator

(vi) Type of travel and flight arrangements (Holy pilgrimages and special events)

Failure to comply with any of the conditions above (a to d) shall result in the, suspension, withdrawal or revocation of the Air Travel Organiser’s Licence.

DATED THIS…………………….……..….DAY OF.………………….………….20……………. SIGNATURE…………………….……....……. POSITION…….………………………. SIGNATORY’S NAME (IN BLOCK LETTER)…………………………………………………… ON BEHALF OF.……………………………………………………………………………………. (Include company’s official stamp) N PUBLIC NOTICE

This is to inform the general public that Messrs ………………… has applied to the Nigerian Civil Aviation Authority (NCAA) for grant of Air Travel Organiser’s Licence (ATOL) to organize tours within and outside Nigeria. Any person or organization that has objection or representation as regards this application should do so within 28 days from the date of this application. Such objection or representation should be forwarded to:

The Director General, Nigerian Civil Aviation Authority (NCAA), Aviation House, P.M.B. 21029 Ikeja, Ikeja, Lagos.

Signed: Management

PERFORMANCE BOND BY THIS BOND, WE…………………………….Whose registered office is at……………………(hereinafter called” The Surety”) at the request of ………………………….. whose registered office is ………………………(hereinafter called “The Company”) is held and firmly bound unto the (hereinafter called “The NCAA”) and the company’s various clients, i.e. travel passengers from time to time on travel charters organized by the Company in the sum of……………. for the payment of which sum the surety binds its successors and assigns by these present, as required by the NCAA for the issuance of an Air Travel Organiser’s Licence (ATOL) to the Company. SEALED with the Common Seal of the surety this……..day of…..20….. WHEREAS, the Company by the contract of sale of Travel Tickets and the obligations attached thereto to convey passengers from Destination ‘A’ to Destination ‘B’ and back and the personal effects as the Clients may require on a charter arrangement. NOW THE CONDITION OF THE ABOVE WRITTEN BOND is such that if the Company shall duly perform and observe all the terms, provisions, conditions and stipulations of the said Travel Arrangement to be performed and observed according to the true purport intent and meaning thereof or if on default by the Company, the surety shall satisfy and discharge the total damages sustained by the Clients as required by the NCAA thereby up to an amount not in excess of the sum of ……………………..provided that the above written Bond is executed by the surety upon the express conditions precedent to the right of the NCAA to recover against the surety under the above written Bond. THIS BOND is valid until the ……….day of………20…….and any claim or demand hereunder must be received by the surety on or before the ………………day of ……………20………… which is the expiry date. THIS BOND is to be returned to the surety for cancellation when it expires or is no longer required.

Dated this……………day of………….20…………