Nigerian Airlines, Ground Handling Companies Clash over Hike in Charges

• Nigerian airlines are in fisticuffs with ground handling companies over a recent hike in the charges
• The airlines refuse to accept the charges insisting that it further complicates their business challenges
• The handling companies have listed valid reasons for pushing through with the hike in charges

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

There is a lingering dispute between the ground handling companies and domestic airlines in Nigeria over the introduction of new charges.

After reviewing its charges in 2024, Ground handling companies also introduced a new tariff which they say will bring the safety threshold fee to match with prices in other African countries.

This new handling charge could translate into airlines paying more than three times the former rates – from N70,000 as handling charges for a Boeing 737 aircraft to N200,000 to N300,000; and from N50,000 for CRJ to about N150,000.

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The airlines are resisting these new charges, complaining over their rapidly increasing operations costs.

The handling companies are, however, insistent that airlines have raised their fares by up to 700% in the last three years, while the handling companies have been prevented from increasing handling charges.

NCAA steps in, directs both parties to resolve

The intervention of the Nigeria Civil Aviation Authority (NCAA) has not had any effect on the dispute, although the acting Director-General of NCAA, Captain Chris Najomo has directed both parties to resolve the matter before the next scheduled meeting on Wednesday.

The NCAA last approved handling charges about three years ago, with N70,000 as a fixed charge for handling B737, N50,000 for CRJ and Embraer, and N25,000 for Dash 8, the PUNCH reports.

While the domestic airlines claim that the charges were increased without due consultation, the handling companies insist that they had made due consultations.

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Mr. Ado Sanusi, the MD of Aero Contractors, Ado Sanusi, warned that the arbitrary hike in charges could worsen the challenges faced by domestic airlines.

Recall that Air Peace had revealed that the cost of operating a one-hour flight within Nigeria is over N14 million.

Ground handling companies justify hike in charges

Despite complaints from the domestic airlines about a 600% hike in charges, the handling companies insist that the hike is about 300%.

They justify their hike in charges against the backdrop of the naira devaluation over the last three years, explaining that the ground support equipment is purchased in foreign currencies.

In an interview, Mr. Chris Aligbe, an aviation consultant, explained further that there are three handling companies in Nigeria, and they charge slightly different rates.

He noted that these companies do not act as a cartel to fix or increase prices, debunking claims of the companies teaming up to fix prices.

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Aligbe added that the market is open to receive new entrants, as there is room for more to come in. He also debunked the claims of a 600% price hike, insisting that he had made his investigations and confirmed it to be 300%.

Airlines increase fares by 47% in one year

In related news, a new report from the National Bureau of Statistics shows that in just one year, the cost of airfare has risen by 47%.

This means that Nigerians trying to avoid the inconveniences associated with road travel are paying more for airline tickets.

The airfares were highest in the South-West region, followed by the North-Central, while the South-South recorded the lowest fares.

Source: Legit.ng