2 days ago
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– Reschedules Meeting Till Wednesday Next Week
LAGOS – As the crisis between the ground handling companies and the indigenous airlines continues to degenerate over the introduction of new safety threshold ground handling charges, the Nigeria Civil Aviation Authority (NCAA) has intervened.
NCAA in a meeting called by Capt. Chris Najomo, the Director-General Civil Aviation (DGCA), on Friday, held physically (NCAA annex office in Lagos) and virtually, directed AON and the handling companies to hold another meeting on the new burning issue.
Najomo also directed the two to reach a truce on the issue on or before next Wednesday, February 26, 2025 when another meeting is expected to be conveyed by the authority where the issue would be put to final rest.
A source close to the meeting confided in our correspondent that the indigenous airlines through their umbrella body, Airline Operators of Nigeria (AON), expressed deep dissatisfaction with the increment, claiming they were not consulted by the handling companies before attempting to effect the new rates.
They also alleged that the new handling rates proposed by the ground handling companies was about 600 per cent.
But, the handling companies in their reaction, it was gathered, insisted that due consultations were done by the companies.
They also claimed that the increment was less than 300 per cent, adding that the dwindling economy and the continuous drop of naira against foreign currencies necessitated their action.
Besides, our correspondent gathered that no fewer than 60 per cent of the indigenous airlines have keyed into the new rates and are paying for the services rendered to them as at when due.
It was also learnt that the handling companies had wanted to in January, 2025 attempted to ground a particular airline (names withheld) for non-compliance with the new rates, but the intervention of Mr. Festus Keyamo, the Minister of Aviation and Aerospace Development stopped the plan.
The source said: “We met today (Friday) on the spike issue of new handling rates for the indigenous airlines. As usual, the airlines poured out their minds and the handling companies too spoke on why it was necessary to increase the handling rates.
“After both parties presented their own sides on the issue, Najomo directed them to meet again and give the NCAA a feedback on their agreement. So, both parties would meet again on Monday or Tuesday next week and they are expected to give feedback to the authority on their resolutions on Wednesday.”
Capt. Ado Sanusi, the Chief Executive Officer (CEO) of Aero Contractors and other CEOs of indigenous airlines were part of the meeting, while the CEOs of the two leading ground handling companies – Nigerian Aviation Handling Company (NAHCO) Plc and the Skyway Aviation Handling Company (SAHCO) Plc or their representatives also participated at the meeting.
Besides, Mr. Olubunmi Kuku, the Managing Director, Federal Airports Authority of Nigeria (FAAN) was also part of the meeting.
The indigenous airlines had accused the handling companies of forming a cartel and prevented new companies from joining the sub-sector, an accusation the handlers debunked.
Sanusi, had condemned the handling companies for arbitrarily increasing handling rates.
He had warned that such a drastic increase would wreak havoc on Nigeria’s already fragile aviation industry and further deepening its challenges.
But, Mr. Chris Aligbe, aviation consultant, debunked the claim of the ground handling companies forming a cartel.
He also insisted that the handlers did not engage in price fixing as purported in some quarters.
According to Aligbe, there are no fewer than three handling companies in Nigeria, including Butake Handling Company, Skyway Aviation Handling Company (SAHCO) Plc and Nigerian Aviation Handling Company (NAHCO) Plc.
Aligbe observed that the handling companies had not reviewed their rates over the years, while other businesses, including airline operators had done so severally.
He declared that the handling companies were actually subsidising the airlines, warning that if they remained at the same rates, the handlers may collapse.
He said: “I am not aware of price fixing. The truth of it is that ground-handling companies are more than two and they are not cartels. There is a Butake Handling Company, it’s a small one, but it’s growing. So, the question of stopping other handling companies from coming in is not true.
“Again, I’m not aware that they are cooperating in prices. I know they charge different rates; they handle foreign and local airlines and their charges have not been the same.
“So, if I’m charging N400 and you are charging N200 and you decide to increase it to N300, yes, the prices will still not be the same amount. So, I can’t say they are into price fixing.
“And the question of 600 per cent increase is again not true. I made some investigations and I know it’s about a 300 per cent increment or so.”
In a previous review midwifed by NCAA in 2021, before the further drop of naira, the rates were N70,000 for B737, N50,000 for CRJ and Embraer, while Dash 8 was handled at N25,000 per flight or their equivalents.
The handlers declared that all the Ground Support Equipment (GSE) used for handling of aircraft by the companies are imported 100 per cent, lamenting that they have had to grapple with the consistent decline of the naira in the foreign exchange market for the past 24 months.
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