Disquiet as aviation ground handling firms consider price increase
Aviation ground handling companies in Nigeria are reportedly preparing to raise their service rates due to unsustainable current prices, which industry stakeholders say no longer reflect economic realities.
Current rates include N70,000 for partial handling of a B737, N100,000 for full handling, and N50,000 for CRJ and Embraer aircraft. Stakeholders argue that, given recent increases in domestic airline ticket prices, a rate adjustment for ground handling is also necessary.
However, any new rates would require approval from the Nigerian Civil Aviation Authority (NCAA), with ground handlers expressing concerns that their operations would become untenable without a favorable decision.
Commenting on the development, Mr. Olaniyi Adigun, Chairman of the Aviation Ground Handling Association of Nigeria (AGHAN), acknowledged the need for a price adjustment, though the association does not control pricing. “Given the current economic climate in Nigeria, there is a need for ground handlers to sustain operations.
Airlines and ground handling companies face the same economic pressures. Our members know their costs and when to adjust rates,” he said, noting that the rising costs of fuel, equipment, and foreign training—required for certifications like IATA’s Safety Audit for Ground Operations (ISAGO)—have made existing rates untenable.
A senior official at the Nigerian Aviation Handling Company (NAHCO Aviance), who preferred anonymity, said, “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.”
As stakeholders await NCAA’s decision, concerns grow about potential impacts on airlines, consumer fares, and the long-term sustainability of Nigeria’s ground handling services.
