NAHCO Makes Final Decision on New Rate for Air Peace, Max Air, Other Airlines Operating in Nigeria
- Nigerian Aviation Handling Company has abandoned the planned increase in the rate of safety threshold paid by airlines
- This is even though the company has already spent about N1 billion on the ongoing construction of its export processing centre
- The company said its decision is informed by its vision for Nigerians to embrace additional airlines coming into the sector
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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
Nigerian Aviation Handling Company (NAHCO) Plc has cancelled any prospective review of the safety threshold rates for airlines and its other clients.
Source: Getty Images
The decision came despite the corporation having spent about N1 billion building its export processing centre at the Murtala Muhammed Airport (MMA), Lagos, on the back of the recent economic crisis.
Previous review was two years ago
The last time the nation experienced a significant economic downturn since it last evaluated its rates through the Aviation Ground Handling Association of Nigeria (AGHAN) was less than two years ago.
This was stated by Indranil Gupta, the Group Managing Director (GMD) of NAHCO, in an interview with journalists.
According to Independent.ng, the handling businesses reviewed the safety threshold fees for airlines from approximately $400 to $1,300 for a Boeing 737 or its equivalent for international airlines.
Similarly, depending on the kind of aircraft, the new rate for domestic carriers was evaluated and revised to N20,000 or N70,000.
No more reviews until necessary
Gupta announced that NAHCO would not review the handling rates because it was a responsible organization.
Instead, it stated that while more airlines enter the market, the business will promote flying among Nigerians.
He said:
“My happiness, like I said earlier, is to see more Nigerians flying. We need to be aware that some of the things that need to be done have been done. For example, some changes happened on the cargo side and those things became necessary.
"For me, the naira devaluation is having a smaller impact. The biggest impact is the cost of diesel, manpower, and others. These things have gone up significantly because of the current situation.
“As a responsible industry participant, our endeavour is to be very careful in those efforts and do only things that are required and at a time when they are not avoidable anymore. If the ground handling companies feel they need to review again, it means they are at the last point where they can’t take it anymore.
“As an industry, I can vouch for it that we will not do it until the time our backs are to the wall. Our backs were to the wall when we did it the last time and we will not do it again unless the backs are to the wall. I think we have to be more responsible. What I am saying is that we do things when they become absolutely necessary for us to do them.”
NAHCO strike: Passengers stranded, frustrated at Lagos airport, video springs up
Legit.ng reported that on Monday, January 23, there were no flights at the Murtala Mohammed International Airport (MMIA) in Lagos State.
This occurred during an industrial action by Nigerian Aviation Handling Company Plc (NAHCO) employees seeking a pay raise.
Travellers at the airport were disoriented and agitated as they were observed hopping around the premises.
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Source: Legit.ng
