SAHCO achieves 27% cost reduction with technology integration

SAHCO (Skyway Aviation Handling Company) has revealed that it achieved a 27 percent reduction in operational costs over the past year, as a result of strategic deployment of cutting-edge technologies and the implementation of standardized processes.

This milestone, it said underscores the company’s commitment to leveraging innovation to drive efficiency and financial sustainability in a challenging operational environment.

The company attributed this cost-saving achievement to the integration of advanced technological tools, including e-billing systems, resource allocators, enhanced IT infrastructure, flight and budget applications, document enhancement software, and robust cybersecurity measures.

These innovations have collectively optimized operations, minimized overheads, and streamlined processes, allowing SAHCO to navigate the complexities of rising costs in the aviation sector.

SAHCO emphasized that these cost-reduction strategies were necessitated by escalating operational expenses in the industry, driven by factors such as surging overhead costs, inflation, fluctuating foreign exchange rates, increasing utility expenses, and the high cost of foreign-sourced equipment.

The company said through its proactive approach to technological advancement, it has successfully mitigated these challenges while maintaining its position as a leader in the aviation handling sector.

Speaking during a Gateway forum put together by League of Airports and Aviation Correspondence at SAHCO’s head office in Lagos over the weekend, Adenike Aboderin the managing director, SAHCO, she hinted that the company has been able to keep administrative expenses quite low by leveraging technology to drive processes, thereby reducing costs.

Aboderin noted that despite the company’s cost reduction strategies, it continues to deliver value to its stakeholders, shareholders, clients, airlines across over 22 networks, locations, with a vision of being the leading brand handling company in West Africa and even beyond West Africa, sub-Saharan Africa

“SAHCO enhances financial resilience by improving efficiency, investing in technology, and fostering partnerships, leading to a 27 percent year-on-year cost reduction through new digital tools and streamlined processes.

“For future growth, SAHCO is expanding into new markets, adopting eco-friendly equipment, and investing in workforce training and service quality. These efforts deliver strong financial results, including 82 percent profit growth, 57 percent revenue growth, and an N13 billion rise in assets,” she explained.

She listed some global certifications attained by the company to optimise operations to include International Standards & Compliance certifications ISAGO HQ, ISAGO LOS, ISAGO ABV, ISAGO KAN, ISAGO PHC, RA3 LOS, RA3 PHC, RA3 ABV, NCAA DG Authorisation, ISPON CORPORATE CERT, NCAA Ground Handling Licence, ISO:9001:2015 (QMS), ISO 14001:2015 (EMS) and triking school authorisation.

“If you check the revenue of $31.7 billion, last year for the same period we had $20.1 billion, that is a 58 percent year-on-year increase, which is highly commendable despite all the headwinds we’re going through.

“On gross profits, we had an increase of 47 percent to $18 billion. Last year it was $12 billion. Profit before tax, we had an increase of 82 percent to $10 billion for $5.5 billion last year.

“Our total assets increased from $40 billion to $57.1 billion, representing a 31 percent growth,” she said.

According to her, the company has invested heavily in assets, infrastructure, green equipment, and sustainable equipment and is phasing out ageing equipment, gradually.

“We had financial resilience and growth by strategically investing in operational excellence, technological infrastructure, and sustainable partnerships with our stakeholders, the airlines, the agents, and the regulatory bodies.

“We’ve started the e-billing so as to improve faster processing; bills are sent electronically, and payment is also made electronically. We’ve set up a new department called the Resource Allocators Department so that there’s efficiency in utilising our scarce resources,” the SAHCO MD explained.

She said budget performance are monitored monthly with an app that guides the company and this has driven efficiency on the financial side.

“We’ve just gone into cybersecurity to strengthen our controls and to safeguard our software. For streamlining and standardisation, we all know we are in a regulatory environment. And I’m proud to say that SAHCO has the most certifications of all handlers,” Aboderin said.

She disclosed that the company is going into a partnership with some African countries on training and would be opening its training school for
aviation-related commercialised trainings.

“People will now come in for not just handling, but even checking in, baggage handling, both air and land side trainings. Instead of travelling overseas, people can now be trained in Nigeria. We’re building a new training school, larger than the one we have here. Eventually, we’re hoping that it will become an academy,” she said.