Aviation Ground Handling Companies in Nigeria Prepare for Rate Increases

Industry Stakeholders Call for Adjustments Amid Economic Pressures

Aviation ground handling companies in Nigeria are gearing up to raise their service rates, citing that current pricing no longer reflects the economic realities facing the industry. Stakeholders argue that the existing rates have become unsustainable due to rising operational costs and recent increases in domestic airline ticket prices.

Current Rates and Proposed Adjustments

Currently, the rates for ground handling services are as follows:

• N70,000 for partial handling of a B737
• N100,000 for full handling of a B737
• N50,000 for handling CRJ and Embraer aircraft

With the rising costs of fuel, equipment, and foreign training necessary for certifications like IATA’s Safety Audit for Ground Operations (ISAGO), industry leaders believe that an adjustment in rates is essential for maintaining operations.

Need for NCAA Approval

Any proposed rate increases will require approval from the Nigerian Civil Aviation Authority (NCAA). Ground handling companies have expressed concerns that without a favorable decision from the NCAA, their operations may become untenable.

Mr. Olaniyi Adigun, Chairman of the Aviation Ground Handling Association of Nigeria (AGHAN), acknowledged the necessity for price adjustments while clarifying that the association does not control pricing. He stated, “Given the current economic climate in Nigeria, there is a need for ground handlers to sustain operations. Airlines and ground handling companies face the same economic pressures. Our members know their costs and when to adjust rates.”

Concerns from Ground Handlers

A senior official from the Nigerian Aviation Handling Company (NAHCO Aviance), who spoke on the condition of anonymity, highlighted the disparity in pricing flexibility between airlines and ground handling companies. “While we’re concerned about the extent of any increase, final rates are subject to NCAA approval. Unfortunately, airlines can increase their prices freely, but our rates require NCAA authorization.”

Implications for Airlines and Consumers

As stakeholders await the NCAA’s decision on the proposed rate increases, there are growing concerns regarding the potential impact on airlines, consumer fares, and the long-term sustainability of ground handling services in Nigeria. The relationship between ground handlers and airlines is crucial, and any adjustments made could ripple through the industry, affecting operational costs and pricing for consumers.

Conclusion

The call for an adjustment in ground handling rates reflects the broader economic challenges facing the aviation industry in Nigeria. As stakeholders navigate these complexities, the outcome of the NCAA’s review will be pivotal in determining the future of ground handling services and their ability to adapt to the changing economic landscape.