NEWS AGENCY OF NIGERIA

Ground handling companies propose rate review

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By Itohan Abara-Laserian

Ground handling companies, under the Aviation Ground Handlers Association of Nigeria (AGHAN), have proposed an upward review of handling charges to sustain the sub-sector’s growth and development.

They expressed the views while speaking with journalists on Thursday in Lagos.

They noted that the current charge rate, especially for the domestic operators, if not reviewed would not be sustainable for the industry.

Alhaji Bello Salihu, the Managing Director, Butake Handling Company Ltd., said the nation’s aviation industry was in need of urgent intervention from the Federal Government.

Salihu lamented that the cost of doing business in the aviation industry had skyrocketed in the last few months.

He stressed that the cost of diesel had risen to about N1,700 from N700 in the northern parts of the country, without any attendant increase in rates charged by handlers.

Salihu called for an upward review of handling rates for airlines for the handlers to remain in business.

NAN reports that the handling rate for B737 currently stands at N70,000, CRJ and Embraer, N50,000 respectively, while Dash 8 is N25,000 per flight.

However, the association had proposed a N400,000 per flight for a Boeing 737 aircraft or its equivalent, N250,000 for CRJ or Embraer aircraft and N150,000 for Dash 8 airplanes.

AGHAN hopes to begin the implementation of the new rate regime on April 1, but the proposal is yet to get the approval of NCAA.

Salihu noted that the handling companies were still charging N70,000 for an hour of turnaround handing of a B737 in spite of the high cost of diesel.

He explained that the airline operators in the last meeting held with the Airline Operators of Nigeria (AON), admitted that the industry needed some adjustments in terms of charges, but the two bodies had yet to reach an agreement.

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Salihu, however, said that handlers, through AHGAN, would continue to consult with the airlines in line with the standards and recommended practices of the International Civil Aviation Organisation.

He said: “This discussion is necessary between AON and ground handling companies because none of us can do without the other.

“Therefore, we cannot suffocate and enjoy their services, otherwise, if any part suffocates, it will lead to immediate flight disruption. This will lead to missed connections.

“For instance, if you are flying from Abuja to Lagos for a 6.00 p.m. flight for further connections, and by 6.30 p.m., you have not departed Abuja, how can you make the connection?

“You did not leave Abuja not because you did not have fuel or the equipment, but because you have no machines to operate your equipment to provide a motorised gang to disembark or board your passengers.

“Similarly, when you arrive Lagos and your machine at the ramp, you cannot evacuate your luggage for one hour because they do not have the operational vehicle and vice-versa.

“If the airlines cannot fly as a result of the high cost of operations, it will slow down economic activities,” he noted.

On her part, Mrs Adenike Aboderin, Managing Director, Skyway Aviation Handling Company (SAHCO) Plc, ruled out the claim that the increase in handling rates would lead to reduced passengers or airfares.

Aboderin insisted that the cost of doing business in the country had increased significantly in recent times, which had further put pressure on ground handling companies.

She explained that this had prompted handlers to take difficult decisions about their pricing, maintaining that SAHCO, however, was doing everything it could to keep its rates as low as possible, yet, providing the high-quality service.

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She added that investment in infrastructure such as new or upgraded facilities at the airports would make it easier for ground handlers to do their jobs.

“As a ground handler, our goal is to provide our customers with the best possible service at a fair price.

“We have a lot of costs associated with providing our services, including labour costs, equipment costs, and overhead expenses.

“We strive to keep our rates as low as possible, while still providing the quality of service that our customers expect, as we provide a vital service to the aviation industry.

“Without us, airlines would not be able to operate as efficiently or effectively.

“We help to keep planes on schedule, ensure that passengers and goods are safely and securely processed, and provide other important services,” she noted.

Aboderin further advocated tax incentives to ground handlers and low interest rates on loan facilities, arguing that this would help them to offset the costs of doing business.

Also, Prince Saheed Lasisi, the Group Executive Director, Commercial and International Business, Nigerian Aviation Handling Company (NAHCO) Plc, said the upward review in handling rates would not affect airfares by airlines.

Lasisi decried how the cost of production had increased across board, including among the airline operators.

He, however, refused to blame the airlines or any other organisations for the recent hike in prices of goods and services, attributing this to the crash in naira and the challenging operating environment across all sectors.

Lasisi, stated that NAHCO was not immune from the present global economic challenge, noting that some countries in recent weeks had fallen into recession.

He clarified that the handling rates review would not affect the international airlines as the airlines are billed in dollars, but regretted that same equipment, personnel and turnaround time are expended on domestic operators who are still billed low.

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“We are not increasing the international rates because they are charged in dollars. I think we are covered to an extent in the international market.

“Can you compare the N70,000 that we charge the domestic airline operators with the $1,200 that we charge the international airlines?

“They are the same equipment with the same turnaround period. You can see that the difference is huge. The N70,000 we charge is not even up to $50 at the moment.

“We are not saying we want to charge the domestic airline operators the same $1,200 that we charge international airlines that use the same machine as theirs, but because of the frequencies and the local contents, we have to support our operators.

“These are private companies and not government agencies that can decide to subsidise their clients. We are also in business to make a little profit and with lots of responsibilities.

“We also have our staff to train, pay and need to acquire new equipment to upgrade ourselves to our clients,” he said.

Lasisi called for customs duty waivers for handling companies in Nigeria, lamenting that for every equipment imported into the country, NAHCO pays between 15 and 20 per cent on the value of the facility as customs duties. (NAN)

Edited by Chinyere Joel-Nwokeoma

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Folashade Adeniran
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