Chinedu Eze
Aviation industry experts have said that ground-handling companies at the nation’s airports lose about $28,350,000 (about N14, 175 billion) annually to inappropriate pricing of their services.
Thus, experts have warn that if the current rates charged airlines by the handling companies; foreign and local, are not reviewed, the ground handlers may go under, while safety and security may also be jeopardised in the system.
It was learnt that the handling companies charge between $300 to $1000 to handle a narrow body aircraft, rather than $1,400 to $1600 charged in other African countries, while for the wide body aircraft, they still charge about $ 3,000 instead of $5,000 in sub-Saharan African countries.
There are indications that no fewer than 45 narrow body aircraft on regional and international routes, which include Boeing B737, Airbus A320, ER 135 and ATR aircraft are handled daily at the nation’s international airports by the ground handling companies.
For wide body aircraft like B767, A330, B777 and B747, at least 20 flights are handled daily by the ground handling companies.
For instance, the average handling rate in other West African countries for a narrow body aircraft is $1,500, while it is about $300 to $1,000 per aircraft in Nigeria.
For wide body aircraft, at least 20 are handled daily across the nation’s international airports by the handling companies, while 600 of such aircraft are handled monthly and 7,200 annually.
The handling companies handle 45 narrow body aircraft daily, 1,350 monthly and 16,200 annually.
At least, 150 aircraft are handled daily by the ground handling companies in Nigeria. Investigation revealed that the domestic aircraft are still handled at the sum of N15, 000 to N20, 000 by the handling companies.
It was also learnt that the combined handling companies in the sector; Skyway Aviation Handling Company (SAHCO) Plc, Nigerian Aviation Handling Company (NAHCO) Plc, Swissport Handling Company and Precision Aviation Handling Company Limited (PAHCOL) are striving to remain in business.
It was gathered that whatever revenue the ground handling companies generate at the moment is half of what they were supposed to earn either daily, weekly, monthly or annually.
Apart from the humongous loss by the handlers, the federal government through the Federal Airports Authority of Nigeria (FAAN) is also losing revenues from the handlers.
FAAN earns 5 per cent total annual turnover from the handling companies.
However, industry players have called on the Nigerian Civil Aviation Authority (NCAA) to intervene in the situation to prevent the handling companies from collapsing and compromise of security and safety in the sub-sector.
They also warned that if the authority did not intervene, the gains recorded in the civil aviation sector past eight years, might be jeopardised.
The pioneer Commissioner, Accident Investigation Bureau (AIB), Dr. Sam Oduselu said that the current rates in the sub-sector were due for a review.
He described the current rates as “backward,” stressing that the outbreak of Covid-19 pandemic had further compounded the woes of organisations in the industry, including the ground handling business.
Oduselu insisted that the rates were not sustainable and feared that apart from the safety and security implications; the federal government was also losing massive revenues from the sub-sector.
“When I was the Director of Airworthiness at NCAA, the directorate is called economic regulation and when you are talking of economic, this is a part of it and that will dovetail into safety. Economic regulation is to ensure that whatever you are charging for air ticket, will be good enough to maintain your air ticket, maintain your equipment and pay your staff appropriately.
“But, under a low regime handling rates, the ground handling company will find it difficult to function optimally and effectively. Also, government as it is, is not deriving the economic benefit they should derive especially from the foreign carriers. Those airlines know the handling rates they are paying in those countries they fly into, but when you compare that with what we charge, you will find out that they will prefer the rates in Nigeria to those countries.
“I think the major challenge we are having is that these ground handling companies were set up by airlines, but now that the handling companies are in the private hands, they found out that the charges are too low and they affect their profit margin. As a result of this, the activities of the ground handlers can jepardise safety if staff are not adequately remunerated, not paid on time, you will find out that the staff will not put in their best on the job,” he said.
