In an exclusive interview, renowned aviation expert, Mr. Chris Aligbe provided insights into the recent controversy surrounding the increase in ground handling charges in Nigeria.
Addressing allegations of a 600% hike, Aligbe clarified that the actual increase stands at 300%, which he believes aligns with trends in the global aviation industry.
Rationale Behind the Rate Adjustment
The expert emphasized the pivotal role of ground handling companies in ensuring seamless air travel. “Without them, travel is not possible. They handle operations and cannot run at a loss or subsidize airlines,” he remarked.
While airlines have significantly increased ticket prices, leading to a decline in passenger numbers, ground handling companies have only recently adjusted their charges, a move Aligbe deemed overdue.
Impact on Domestic and International Operations
The rate hike applies exclusively to domestic airlines, while international charges remain aligned with global standards. He explained this disparity: “Handling a domestic Boeing 737 is not the same as handling an international one, despite using similar equipment. Ground handling companies are careful not to burden the domestic industry with international-level rates.”
Challenges Facing Ground Handling Companies
The expert highlighted the financial pressures faced by these companies, citing forex challenges, escalating fuel prices, and the skyrocketing cost of essential materials like lubricants and engine oil.
He noted, “A gallon of engine oil that cost ₦6,000 now goes for ₦40,000. This is a significant increase, not from the aviation sector but from the oil sector.” He added that the high cost of maintaining equipment and retaining skilled manpower further complicates their operations.
Calls for Fair Competition
The aviation industry currently has two major players in ground handling: NAHCO and SAHCO. Aligbe dismissed claims of monopolistic practices, citing the emergence of smaller players like Butaki as evidence of a competitive environment. However, he acknowledged the challenges of entering the market, describing the capital required to establish a ground handling company as “more intensive than setting up an airline.”
Aligbe called for the Federal Competition and Consumer Protection Commission (FCCPC) to remain vigilant against anti-competitive practices. “If NAHCO and SAHCO were engaging in such practices, Butaki wouldn’t have emerged,” he argued.
Performance Evaluation and Expectations
Reflecting on the performance of ground handling companies, the expert noted no significant complaints from airlines or passengers regarding their services. “When I travel, I observe their operations, from check-in processes to baggage handling. So far, I’ve not encountered any serious issues,” he said.
However, with the increased rates, Aligbe emphasized the need for ground handling companies to enhance service delivery. He warned that inefficiencies, such as delays or improper handling, could result in significant operational and financial consequences for airlines and the broader aviation industry.
The Way Forward
As the aviation sector grapples with economic challenges, Aligbe urged stakeholders to recognize the indispensable role of ground handling companies.
He concluded, “Investing in their operations is crucial to sustaining the industry. Without well-equipped and efficient ground handlers, the entire travel chain is at risk.”
