Nigeria Ground Handling Services to Increase Prices

2 weeks ago Editor

Ground handling companies in Nigeria are preparing to increase their rates in response to rising operational costs. However, any price hike requires approval from the Nigerian Civil Aviation Authority (NCAA), raising concerns over the sustainability of the industry.

Ground handling companies in Nigeria are considering a price increase for their services, citing the need to align rates with the current economic realities. Stakeholders in the aviation sector argue that the existing prices no longer reflect the rising costs of operations.

Current rates for ground handling services include N70,000 for partial handling of a B737, N100,000 for full handling, and N50,000 for aircraft like CRJ and Embraer. However, with the recent hike in domestic airline ticket prices, there is increasing pressure for ground handling companies to adjust their own rates.

The Nigerian Civil Aviation Authority (NCAA) must approve any price increase, and ground handling companies have expressed concerns over the financial sustainability of their operations without a favorable outcome from the regulatory body.

Mr. Olaniyi Adigun, Chairman of the Aviation Ground Handling Association of Nigeria (AGHAN), acknowledged the need for rate adjustments, though he emphasized that the association does not control the pricing. He stated, “Given the current economic climate in Nigeria, ground handlers must adjust to remain viable. Our members understand their costs and know when to adjust their prices accordingly.” Adigun also highlighted the rising costs of fuel, equipment, and foreign certifications like the IATA Safety Audit for Ground Operations (ISAGO) as significant factors driving the need for a price review.

A senior official from the Nigerian Aviation Handling Company (NAHCO Aviance), speaking anonymously, pointed out the concern about the extent of any potential increase. However, they stressed that final rates would be determined by the NCAA. “Unlike airlines, which can freely adjust their ticket prices, we need regulatory approval to change our rates,” the official noted.

As the aviation industry awaits the NCAA’s decision, concerns are mounting about the potential impact on airline operations, passenger fares, and the overall sustainability of Nigeria’s ground handling services.