Three years after, aviation handling firms propose new rates
The worsening macroeconomic challenges in the country have forced ground-handling companies to propose new handling rates for airlines. With effect from March 1, the ground handling companies may begin to charge new rates if approved by the Nigeria Civil Aviation Authority (NCAA). This is coming about three years and three months when new rates were […]
Festus Keyamo
The worsening macroeconomic challenges in the country have forced ground-handling companies to propose new handling rates for airlines.
With effect from March 1, the ground handling companies may begin to charge new rates if approved by the Nigeria Civil Aviation Authority (NCAA).
This is coming about three years and three months when new rates were approved by the regulatory authority to bring the safety threshold charge at par with what is obtainable in other African countries.
Aviation Ground Handling Association of Nigeria (AGHAN), the umbrella body of ground handling companies in the country, in a meeting with Capt. Chris Najomo, the Ag. Director-General, Civil Aviation (ADGCA), has however proposed a review which it said is inevitable with the current economic challenges, especially the foreign exchange crisis.
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A letter signed by three of its executives Mr Olaniyi Adigun, chairman; Ahmed Bashir, Vice Chairman; and Prince Saheed Lasisi, Financial Adviser, dated January 26, 2024, titled ‘Proposed Increase In Domestic Safety Handling Rate In Nigeria’, proposed different rates for airlines based on aircraft sizes.
The handling firms proposed 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 proposed March 31, 2024 for the take-off of the new regime and sought the approval of NCAA for full implementation of the new rates.
It would be recalled that in 2021, the rates approved at that time were N70,000 for B737, N50,000 for CRJ and Embraer, while Dash 8 was handled at N25,000 per flight, or their equivalents.
But the handling firms said the current rates are unsustainable considering that all the Ground Support Equipment (GSE) used are imported 100 per cent requiring foreign exchange.
They said rising inflation has pushed up the cost of operations in addition to the 100% increase in ground rent charged by the Federal Airports Authority of Nigeria (FAAN).
AGHAN pointed out that the airlines, international and domestic, had consistently reviewed upward air tickets over the years, while the handling rates for ground handling companies had remained the same within the same period.
The body noted that on the domestic side, Lagos and Abuja flights ranged between N90,000 to N150,000 for an economy class ticket, while the business class ranged between N180,000 and N250,000 depending on the airline, class of the ticket and the period the booking was activated by an air traveller.
For the international operators, it argued that with today’s rate, the cheapest flight on any airline; Lagos-London is $1,500 to $2,500 (economy seat), lamenting that the handling rates had reduced despite the skyrocketing prices of equipment and machines.”