Key players describe Nigerian handling charges as the lowest globally

Key players across the country’s aviation sector have continued to condemn the present handling charges being collected by the ground handling companies in Nigeria which have been described as the lowest in the world.

The ridiculous charges according to stakeholders are unreasonable saying the charges are not commensurate with the present wide parallel gap between the naira and foreign exchange.

A document sighted by the Tribune Aviation indicated that while Nigeria charges between $400 and $1,139 for narrow body aircraft  depending on the negotiating power of the foreign carriers and $3,000 and $3,200 for wide body planes depending on the negotiation of the foreign carrier, countries like Guinea charges $1,673 for narrow body aircraft and $4,715 for wide body aircraft.

Senegal charges  $2,250 for narrow body and $5,259 for wide body, Cameroon charges $1,400 for narrow body and $4,500 for wide body.

While the handling of a narrow body plane in Sierra Leone attracts  $2,250 and a wide body plane handling attracts $5,250, Ghana collects  $1,500 for the handling of narrow body aircraft types and collects $4,150 for the wide body brand.

The narrow body aircraft types include: B737, Airbus A320, ER 135 and ATR while the wide body aircraft fall under the category of B767, A330, B777, B747 and A380 aircraft.

The ground handling companies in Nigeria have been charging the lowest rates since late 1980s and 1999.

Key players have called on the Nigerian Civil Aviation Authority (NCAA) to intervene in the bad economic judgement which they said were being exploited by the foreign airlines.

The two major ground handling companies in Nigeria are the National Aviation Handling Company (NAHCO) aviance and the Skyway Aviation Handling Company (SAHCO).

Commenting on the development, the Managing Partner of Aglow Aviation Support Services Limited, Tayo Ojuri emphasized that a safe and reliable flight required a whole range of ground services to be safely and successfully completed on the ground between aircraft arrival and departure according to a common set of requirements that can be implemented worldwide in a standardized manner saying with the growth of air traffic, ground operations have become increasingly complex.

Ojuri said in order to ensure safe, secure and commercial operations that ground handling charges needed to be competitive and be a true reflection of cost of operations.

Many of the key players while tasking the NCAA to step in, are also urging NAHCO, SAHCO and other handling companies in Nigeria to adjust the low prices in order to survive the effects of the current pandemic, COVID-19.

A former Managing Director of NAHCO who attested to the negative impact of the lower charges on ground handlers, cautioned that if the situation persisted that it may hinder cost recovery by the service providers.

“Lack of sustainability for aviation has serious implications because aviation actually starts from the ground and you land back on the ground. It is the ground handling companies that do that. If you are charging less than cost, it means you are subsidizing from somewhere and this will have an impact on the service you provide, equipment on the ground and others.”

Some of the key players lamented how despite the many years the issue had lingered on; the federal government looked the other way.

Making case for charges that will encourage cost-reflective, avenue and still show some levels of competitiveness, stakeholders declared that there should be price fixing for narrow body and wide body aircraft.

“You should have a minimum level you can go, but don’t charge yourself out of business. If you are already operating below the bottom, honestly, it is not sustainable. There is implication on safety, security, job employment and the government. If companies are not making sufficient profit, it will affect the level of tax they will pay,” a former top management at one of the handling companies declared.

To help the handling companies wax more strong financially to be able to up their services and boost the revenue generation of the government, the NCAA on behalf of the government has been called to call the relevant partners including airlines and the ground handling companies together and agree on the need to increase the prices presently being charged in line with other climes.

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