Aviation ground handling companies in Nigeria are reportedly gearing up to raise their service rates, citing that the current prices are no longer sustainable and do not reflect the prevailing economic realities. Industry stakeholders emphasize that the existing rates, which include N70,000 for partial handling of a B737, N100,000 for full handling, and N50,000 for CRJ and Embraer aircraft, are insufficient given the recent increases in domestic airline ticket prices.
NEED FOR ADJUSTMENT
Mr. Olaniyi Adigun, Chairman of the Aviation Ground Handling Association of Nigeria (AGHAN), acknowledged the pressing need for a price adjustment. However, he clarified that the association does not have control over pricing. “Given the current economic climate in Nigeria, there is a need for ground handlers to sustain operations. Our members understand their costs and recognize when it is necessary to adjust rates,” he stated. Adigun pointed out that the rising costs of fuel, equipment, and the need for foreign training—required for certifications like the International Air Transport Association’s (IATA) Safety Audit for Ground Operations (ISAGO)—have made current rates untenable.
A senior official at the Nigerian Aviation Handling Company (NAHCO Aviance), who chose to remain anonymous, echoed these sentiments, stating, “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.”
IMPACT ON THE INDUSTRY
Any new rates will require the approval of the Nigerian Civil Aviation Authority (NCAA), and stakeholders are expressing concerns that without a favorable decision, their operations could become untenable. As they await the NCAA’s decision, there are growing apprehensions about the potential impacts on airlines, consumer fares, and the long-term sustainability of Nigeria’s ground handling services.
This development underscores the ongoing economic challenges faced by the aviation sector, where rising operational costs threaten the viability of ground handling services in the face of fluctuating airline prices. The outcome of the NCAA’s deliberation on proposed rate adjustments will be crucial for the future of the industry.
