How new handling rates ‘will deepen’ aviation safety

After 35 years of being in operation, the Federal Government recently approved a new Safety Threshold Ground Handling Charges for ground handling firms operating in the country’s aviation sector.

Daily Trust reports that the new approval gives a N15bn boost to the aviation sector. Aviation safety, according to stakeholders, starts from the ground. The takeoff and landing of any aircraft globally depends on carrying out the due diligence from the ground. Passenger facilitation, disembarkation, baggage handling, ramp inspection, among others are some of the responsibilities of ground handling organizations. They are therefore as critical as any stakeholder in the sector.

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In Nigeria today, there are no fewer than four ground handling firms operating in the country’s aviation sector. They include the two major ones- the Nigeria Aviation Handling Company PLC (nahco aviance); the Skyway Aviation Handling Company (SAHCO) as well as Precision Aviation Handling Company (PAHCOL) and Swissport Handling Company.

But for 35 years, the rates collected by the ground handling firms from airlines, both domestic and foreign carriers, have stagnated. This has denied the Federal Government billions of naira in revenue annually.

For instance if an airline from any African country comes to Nigeria, it pays about $400 as handling charge but when any Nigerian airline goes to the same country, it pays about $2000 in the same country, for the same aircraft type and the same flight distance.

Findings by our correspondent revealed that handling companies hitherto charged between $300 to $1000 to handle a narrow body aircraft, rather than $1,400 to $1600 charged in other African countries.

For wide body aircraft, they charge about $3,000 while $5,000 is charged in sub-Saharan African countries for similar aircraft types.

It was learnt that no fewer than 45 narrow body aircraft on regional and international routes comprising Boeing B737, Airbus A320, ER 135 and ATR aircraft are handled daily at the nation’s international airports by the ground handling companies.

Similarly, at least 20 wide body aircraft like B767, A330, B777 and B747 are also handled daily by the ground handling companies.

This, according to stakeholders, has been an albatross and huge loss to the country when appropriate handling rates should fetch the operators and the Federal Government about $56.7m annually.

Analysis of the charges in some West Coast countries showed that Ghana charges $1,500 for narrow body (smaller aircraft) and $4,150 for wide body.

Guinea on its part charges $1,673 for narrow body and $4,715 for wide body aircraft; Senegal charges $2,250 (narrow body) and $5,259 (wide body); Cameroon ground handlers charge $1,400 (narrow body) and $4,500 (wide body); Sierra Leone charges $2,250 (narrow body) and $5,250 (wide body).

This is a far cry from what obtains in Nigeria despite the sustained naira devaluation recorded over the decade.
But respite has come the way of operators following the approval of new safety threshold charges by the Federal Government.

A document obtained indicated that the NCAA has now approved between $1,500 and $5,000 (passenger and cargo flights) for handlers for a narrow and wide body aircraft respectively, while for domestic flights, operators will now pay between N25, 000 and N70,000 depending on the aircraft type.
Another circular signed by the NCAA Director-General, Capt. Musa Nuhu dated September 6, 2021 with the reference number: NCAA/DG/AIR/11/16/315, addressed to “All Airlines And Ground Handling Companies” (foreign and local), set different dates for the commencement of the new charges.

The circular with the subject: “Safety Threshold Ground Handling Charges,” said that the new ground handling charges would take effect from October 1, 2021 for international carriers and January 1, 2022 for domestic airline operators.

The circular read in part: “All stakeholders are invited to note that the new ground handling rates for international and domestic operations will become effective on 1st October, 2021 and 1st January, 2022, respectively.

“All stakeholders are directed to ensure full compliance with the safety threshold ground handling charges. Any change to these charges must be done in formal consultation with and approval of the NCAA. Please be guided accordingly.”

Speaking with our correspondent on the development, the NCAA DG said the new rates were agreed upon jointly by the stakeholders.
He said, “Those charges were done after consultations with the foreign, domestic airlines and ground handlers. The NCAA did not just wake up and put figures together. We had consultative meetings with all the parties involved. Why should I be charging $300 in Nigeria and neighbouring countries are charging $4,000 and you expect the ground handlers to give you the same service? That is not possible. Those charges are a reflection of what is in the Economic Community of West African States (ECOWAS) region.
“So, NCAA didn’t just wake up to come out with the charges, but significant consultative meetings with everyone like the Aviation Ground Handling Association of Nigeria (AGHAN), Airline Operators Committee (AOC), Airline Operators of Nigeria (AON) and the Ministry of Aviation. It was agreed by everyone and we implemented the figures as agreed by all the parties involved.”

Chairman of AGHAN, Mr. Olaniyi Adigun while responding to the new approval described the development as a big boost for the industry.

He said, “Like I said earlier, the government is getting 5 percent of our total annual revenue and with more money, we will have improved manpower, create more jobs for teeming Nigerians. As it is, we have a lot of unemployed youths, but we are not able to attract them and even the ones that we have, we couldn’t retain them. There will be better service delivery, safer skies and encouragement of more investors to come in.

“This is the first time in a long while that the aviation industry is speaking with one voice across board. The minister himself is an aviator; he understands our plights and he knows the right thing to do.”

Vice-Chairman of AGHAN, Mr. Bashir Ahmed said the federal government has succeeded in saving the ground handling sub-sector from collapse.
He said, “The impact is that it will be able to sustain the industry, ensure stability and financial stability for the handlers. We will be able to recruit more Nigerians and increase the welfare of our staff. It will also ensure that we have better and modern equipment, develop our capacity. We will be able to initiate modern trainings and all these are cost effective. And, some of the training are not even conducted here in Nigeria.

“Just as we all know, aviation is internationally regulated and not local. You have to consistently acquire new knowledge and ideas so that our personnel can be able to compete all over the world. All these are tailored towards ensuring safety in the industry.”

With the new approval, stakeholders stress the need for effective monitoring to ensure compliance by all operators and ensure that none of them engages in underhand dealings by charging below the newly approved safety threshold.