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Thursday, February 29, 2024

Ground handling companies propose rate review

AGHAN has proposed an upward review of handling charges to sustain the sub-sector’s growth and development.

• February 29, 2024
AEROPLANES AT ABUJA AIRPORT
AEROPLANES AT ABUJA AIRPORT used to illustrate the story [Credit: Daily Trust]

Ground handling companies, under the Aviation Ground Handlers Association of Nigeria (AGHAN), have proposed an upward review of handling charges to sustain the sub-sector’s growth and development.

They expressed their views while speaking with journalists on Thursday in Lagos.

They noted that the current charge rate, especially for domestic operators, would not be sustainable for the industry if not reviewed.

Bello Salihu, the managing director of Butake Handling Company Ltd., said the nation’s aviation industry needed urgent intervention from the federal government.

Mr Salihu lamented that the cost of doing business in the aviation industry had skyrocketed in the last few months.

He stressed that the cost of diesel had risen to about N1,700 from N700 in the northern parts of the country without any attendant increase in rates charged by handlers.

Mr Salihu called for an upward review of airline handling rates so the handlers could remain in business.

The handling rate for B737 currently stands at N70,000, CRJ and Embraer at N50,000, respectively, while Dash 8 is N25,000 per flight.

However, the association had 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 aeroplanes.

AGHAN said it hoped to begin the implementation of the new rate regime on April 1, but the proposal has yet to get the approval of the NCAA.

Mr Salihu noted that the handling companies were still charging N70,000 for an hour of turnaround handling of a B737 despite the high cost of diesel.

He explained that the airline operators, in the last meeting held with the Airline Operators of Nigeria (AON), admitted that the industry needed some adjustments in terms of charges, but the two bodies had yet to reach an agreement.

Mr Salihu, however, said that handlers, through  AGHAN, would continue to consult with the airlines in line with the standards and recommended practices of the International Civil Aviation Organisation.

He said, “This discussion is necessary between AON and ground handling companies because none of us can do without the other. Therefore, we cannot suffocate and enjoy their services. Otherwise, if any part suffocates, it will lead to immediate flight disruption. This will lead to missed connections.

“For instance, if you are flying from Abuja to Lagos for a 6.00 p.m. flight for further connections, and by 6.30 p.m., you have not departed Abuja, how can you make the connection?

“You did not leave Abuja not because you did not have fuel or the equipment, but because you have no machines to operate your equipment to provide a motorised gang to disembark or board your passengers. Similarly, when you arrive in Lagos, and your machine is at the ramp, you cannot evacuate your luggage for one hour because they do not have the operational vehicle and vice-versa.”

He added, “If the airlines cannot fly as a result of the high cost of operations, it will slow down economic activities.”

(NAN)

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