The Aviation Ground Handling Association of Nigeria, AGHAN is set to embark on an indefinite strike starting Friday this week over the suspension of the new charge regime approved for them by the Nigeria Civil Aviation Authority, NCAA about two months ago.
The aviation committees of Aviation in the National Assembly directed the handling companies to stop the commencement of the new charge regime as there were gray areas they needed to clear with the NCAA.
In August this year, the NCAA had approved new safety threshold handling rates for ground handling companies after 35 years of operating the old rates.
With the approval, the ground handling companies in Nigeria; the Nigerian Aviation Handling Company (NAHCO) Plc, the Skyway Aviation Handling Company (SAHCO) Plc, Precision Aviation Handling Company Limited (PAHCOL) and the Swissport Handling Company, were expected to charge the same handling rates as their counterparts in the sub-African countries.
According to the approved new rates, the handlers could charge between $1,500 and $5,000 for passenger and cargo flights, narrow and wide body aircraft on international routes, while for domestic operators depending on aircraft type, they could charge up to N20,000 and N70,000.
Industry stakeholders say, if the handling companies make good their action, it will adversely affects the airline sub-sector as activities will be paralysed.
In an interview, stakeholders blamed the lawmakers for interfering in the NCAA functions, an autonomous agency by the Act that sets it up.
According to them, Political interference especially where it hinges on Safety should be condemned in strong terms as global aviation frowns at such scenario.
They stated that, the increase in handling charges was justified as the handlers in the last 10 years were cutting themselves by the skin to attract clients and in doing so, they were almost going below production, which was affecting their balance sheet.
Mr. Olu Uhunayo, Director, Research, Zenith Travel says, the action they intend taking was not out of place as every investors always have recovery of cost as well as making profits.
“And again, these ground handlers are members of international organisations; they are also members of IATA that is protecting the airlines. So, IATA is not stupid. So, we expect that you will allow the handlers who pay all the rates, who pay to get certification for training of their personnel, to get equipment certified by the same IATA should have known what it takes these companies to provide these services”.
“We have to be factual, the ticket fares have increased from 1990 till now, reflecting the reality of today. the ticket you are paying N50,000, N60,000 for, was below N10,000 20 years ago. So, should the ground handlers remain stunted or stand by to the over 30 years agreement and their equipment are not procured in Nigeria? In the same market, they don’t have a special rate, they buy dollars from the black market to pay for these things. How will they survive?”.
Dr. Gabriel Olowo, President, Sabre Network, West Africa and President, Aviation Roundtable Safety Initiative, ART, also agreed with the new charges for the ground handlers, stressing that, with the current world economic situation, the handlers may compromise on safety and go out of business if they continue with the old charges.
“Absolutely justifiable given global economic indexes on all factors of production that has increased astronomically, including severe currency fluctuations. Refusal by government not to allow the prices to be driven by market forces suggests that the operators may be enjoying all sorts of subsidies, waivers, etc. just a speculation”.
Group Captain John Ojikutu, (rtd) CEO, Centurion Security Services emphasized that, the handling rates approved for the ground handling companies were not different from similar provisions for the airlines fare tariff.
He noted that, the approved threshold handling rates by the NCAA was the oversight right given to it by the provisions of the economic regulations in the Nig CARs Part 18 on all operators – government or private and allied services.
“The problem is not much with the implementation of the new rates by the company, but the multiple layers of agencies charges at in the airports. The increase is justifiable”.
Ojikutu said, political interference in the regulator’s affairs have had dare consequences for the Industry.
“Political interference has been some form of deterrence in the progress of our economic sector and has caused the defunct or the downfalls of most Nigerian airlines, including the Nigeria Airways. Political actors in and out of government often ask for debts concessions or government intervention funds for private operators and sometimes government services providers where they have personal and individual interests”.
He advised that, the lawmakers in the aviation committees get copies of the CAA and Regulations, which they promulgated, read them to know where they have powers in them before they exercise those powers.
“Can they promulgate a judicial law or Act and begin exercising the executive powers in the law? They need to decide on which sides of the divides they want to be and move there; not a bird and rat at the same time”.
A former Director in NCAA, says, the lawmakers must act with caution to avoid Nigeria from becoming a laughing in the global community, adding that, the nation’s prized category One status maybe lost as this had happened to many counties before.
“I am very concerned about what is going on at the moment. We went through the ministry, agencies and the national assembly in getting the regulation. We made it clear to them then that we should have an NCAA without political interference and this is very important. I think this issue can be resolved because this issue is not good for us as an industry and a nation”.
“Category One is the highest rating and if you down it, you can be relegated. This has happened to many countries because of cases like these in the past. You heard what Sen. Na’Allah said on one of the same issues, recently? He has spoken as a professional. I expect other members of his committee to follow suit”.
