After 35 years of stagnant handling charges, the federal government recently approved a new Safety Threshold Ground Handling Charges for firms operating in the country’s aviation sector.
The new approval gives a N15billion boost to the aviation sector.
Aviation safety, according to stakeholders, starts from the ground. The take-off and landing of any aircraft globally depend on carrying out due diligence from the ground.
Passenger facilitation, disembarkation, baggage handling, ramp inspection, among others, are some of the responsibilities of ground handling organisations. They are, therefore, as critical as any other stakeholder in the sector.
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 firms from airlines, both domestic and foreign carriers, stagnated as they were not reviewed. 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 (N164,800) as handling charge, but when any Nigerian airline goes to the same country, it pays about $2000 (N824,000) there for the same aircraft type and flight distance.
Findings by our correspondent revealed that handling companies hitherto charged between $300 (N123,600) and $1000 (N412,000) to handle a narrow-body aircraft, rather than $1,400 (N576,800) and $1600 (N659,200) charged in other African countries.
For wide-body aircraft, they charge $3,000 (N1.2 million) while $5,000 (N2m) 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 country’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, stakeholders said, had been an albatross and huge loss to the country when appropriate handling rates should fetch the operators and the federal government about $56.7m (N23.4) annually.
An 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 by Daily Trust on Sunday indicated that the Nigerian Civil Aviation Authority (NCAA) has now approved between $1,500 and $5,000 (N618,000 and N2m) for passenger and cargo flights for narrow and wide-body aircraft respectively. 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, Captain Musa Nuhu, dated September 6, 2021 with reference number: NCAA/DG/AIR/11/16/315 and 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,” stated that the new ground handling charges would take effect from October 1, 2021 for international carriers and January 1, 2022 for domestic airline operators.
Speaking with our correspondent on the development, the NCAA boss said the new rates were agreed upon jointly by the stakeholders.
He said, “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.”
The chairman of Aviation Ground Handling Association of Nigeria (AGHAN), Mr Olaniyi Adigun, while responding to the new approval, described the development as a big boost for the industry.
He said, “The government is getting five per cent of our total annual revenue, and with more money, we will have improved manpower, create more jobs for teeming Nigerians. 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 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.”
The vice chairman of the AGHAN, Mr Bashir Ahmed, said the federal government had succeeded in saving the ground handling subsector from collapse.
“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, as well as develop our capacity. We will be able to initiate modern training, and all these are cost effective. Some of the training schemes are not even conducted here in Nigeria,” he said.
