FG urged to grant waivers to handling companies

Key players have called on the Federal Government to grant waivers and palliatives to the ground handling agencies to cushion the effects of the ongoing economic hardships just as it did with the airlines.

The stakeholders made the call in other to safe the handling companies from extinction.

They based their call on the recent appeal of the ground handling companies to the Nigeria Civil Aviation Authority (NCAA) to allow them review upward the handling rates for domestic airlines, citing continuous rise in inflation and the collapse of naira against major currencies.

Speaking to the Nigerian Tribune, the Director, Research, Zenith Travels Ltd, Mr Olumide Ohunayo, while describing the planned upward review of the handling rates by the handling companies as justifiable, however sounded a note of caution.

Ohunayo  lamented how in the last eight months, the economy had dwindled  with many of the private sector players struggling to remain in business, while a few had closed shop.

According to Ohunayo, the fall of naira against major currencies and the continued rise in the cost of doing business in the country called for review of handling rates in the sector.

His words: “If you look at the astronomical rates at which diesel, which is a major component of putting their machines into use and to also move goods in their organisations that was below N300 per litre then and now going as high as N1,000 and more, it is clear that upward review of the rates is justifiable.

“They also buy things and trade in dollars. The same dollars that everybody is complaining of, they have to go and get from whatever source. There is no special window for them.

“So, it is justifiable and because of the general increase in which all other members of aviation eco-system have reflected in their charges, they are justified to increase.”

He disagreed with the new rates being proposed by the ground handling companies under the aegis of  Aviation Ground Handling Association of Nigeria, on the premise that it may lead to skyrocketing airfares if not executed with caution.

Ohunayo who argued that the new rates must be in tandem with the present economic reality,made case for more negotiations with the airline operators in line with industry standards and recommended practices to avert industry crisis.

“The review might affect fares, but it will be very marginal unless if only they intend to do it without proper consultations, dialoguing and coming to an agreement with the operators, then, there may be astronomical fares, but they can dialogue, and lay everything on the table. They can sit down together, look at the rates and both parties should agree on it.”