Aviation experts advise ground handling companies to shun price war but improve  on service delivery 

Aviation experts have called on Aviation Cargo Handling Companies to improve more on their service delivery instead of charges increment.

The experts, who include erstwhile Director General of the Nigerian Civil Aviation Authority (NCAA), Dr. Harold Demuren; Commissioner/Chief Executive Officer of the Accident Investigation Bureau of Nigeria (AIB), Engineer Akin Olateru, were among the stakeholders that made the appeal.

The call was made recently during a webinar organized by the Association of Aviation Ground Handlers (AGHAN).

Aviation Handling Services (AHS), Nigerian Aviation Handling Company Plc (Nahco Aviance)  and the Skyway Aviation Handling Company (SAHCO) Plc were enjoined to consider price adjustment instead of price increase, in order to survive the effects of the current global pandemic, Covid-19. 

In a webinar titled, ‘The Impact of COVID -19 on the Nigerian Aviation Ground Handling Industry: Safety, Rates, Regulation’  which was well participated by key players in the aviation industry, Dr. Harold Demuren, who was one of the panelists, emphasized that foreign airlines should pay the dollar equivalent for ground handling services rendered to it in order to ensure the survival of the Aviation Ground Handling companies.

Chairman of AGHAN, Mr. Olaniyi Adigun, who is also the Executive Director, Sales and Marketing of SAHCO Plc remarked that AGHAN was created to represent, advocate policies and regulation for the overall interest of the members of the association. 

He stated further that the creation of AGHAN would foster enabling environment to build and reach a consensus on critical aviation ground handling matters.

Also speaking, Commissioner/Chief Executive Officer of the Accident Investigation Bureau of Nigeria (AIB), Engineer Akin Olateru, enjoined AGHAN to stop the price war.

 He encouraged the Aviation Ground Handlers to collaborate more and improve on their service delivery to airlines and other clients. 

He also said that SAHCO and NAHCO should synergize to get appropriate pricing for the services they provide. He enjoined ground handlers to improve on their service delivery by reducing turnaround time for carriers while also applying innovation that will break the operational silos from the traditional primary services to innovative secondary and tertiary services.

Mrs. Olatokunbo Fagbemi, Group Managing Director and Chief Executive Officer NAHCO Plc, in her remarks, called on all stakeholders to work together for the survival of the industry, 

According to her, “The aviation industry is the worst hit by the pandemic, and by extension, the ground handling companies’’. She opined that the time has come for stakeholders to fashion out a survival strategy, get the buy in and support of the regulators and above all, seek and push for government interventions.  

According to her, ground handlers should be given national award for their efforts at sustaining the industry

Her words, ‘’We are not charging appropriately, even pre-COVID-19. 

“Let’s get what is due to us so we can survive, and we need the help of everybody to grow, we shouldn’t engage in destruction of wealth by the introduction of self-handling, instead, appropriate pricing should be implemented”.

The Director of Air Transport Regulation of NCAA, Group Captain (Rtd) Edem Oyo-Ita who spoke at the webiner said he could not remember the last time Ground Handlers adjusted their price, meanwhile Airlines and other service providers adjust their prices periodically. 

He  enjoined AGHAN to set ground rules and agree on minimum ground handling rates that would be domesticated  with NCAA who will in turn monitor and ensure compliance.