Aviation industry expert and former General Manager of Corporate Affairs at Nigeria Airways, Mr. Chris Aligbe, has weighed in on the ongoing dispute between domestic airlines and ground handling companies over increased service charges. In a candid interview, Aligbe broke down the reasons behind the price hike and dismissed claims that it’s a major financial burden on airlines.
Ground Handling: The Unsung Heroes of Aviation
Ground handling companies play a crucial role in ensuring seamless flight operations. Their tasks include baggage handling, aircraft cleaning, refueling, catering, and coordinating with air traffic control. For years, these companies have operated with relatively low charges despite rising costs in the aviation industry.
Price Hike: A Long Time Coming?
According to Aligbe, the current increase in ground handling charges is both necessary and justified. He pointed out that, historically, ground handling services were dominated by the now-privatized Nigeria Aviation Handling Company (NAHCO) and Skypower Aviation Handling Company (now Skyway Aviation Handling Company, SAHCO). These companies, like airlines, face rising operational costs due to forex fluctuations, inflation, and expensive imported equipment.
“Airline fares have skyrocketed. Fuel costs are through the roof. The entire economy has shifted, so why should ground handling companies be expected to operate at outdated rates?” Aligbe questioned.
Who Bears the Cost?
Critics argue that the cost will ultimately be passed on to passengers. However, Aligbe countered this by pointing out that airlines already transfer costs to consumers through increased fares. He emphasized that ground handling fees are not the major expense in airline operations—fuel costs take the lead by a wide margin.
“Let’s be honest, every cost in aviation is transferred to passengers. But when people say ground handling fees are making flights expensive, they are not telling the whole truth. The real burden comes from aviation fuel, forex rates, and other regulatory costs,” he stated.
The Truth Behind the Percentage Increase
Aligbe also addressed claims that the ground handling rate increase was as high as 600%. He clarified that the actual hike is around 300%, raising the cost of handling a Boeing 737 from ₦75,000 to approximately ₦280,000.
“People are being misled. The work that goes into ground handling justifies the increase. When flights were charging ₦500,000 to ₦700,000 during peak periods, did ground handlers hike their rates? No. So why the outrage now?” he asked.
Can the Government Intervene?
Some industry stakeholders have called on the government to step in, but Aligbe dismissed this notion, citing deregulation. The Nigerian Civil Aviation Authority (NCAA) has instead encouraged dialogue between airlines and ground handlers to ensure a fair resolution.
“The Minister can mediate for industrial peace, but he cannot regulate prices. The industry is deregulated, and businesses must find a way to operate sustainably,” he explained.
Final Verdict: A Necessary Adjustment
The dispute between airlines and ground handling companies has reportedly been resolved, with both parties agreeing to a 15% reduction in the new handling rates. This brings the final increase to approximately 260%—a far cry from the exaggerated claims circulating in the media.
While airlines continue to grapple with rising costs, Aligbe’s position remains clear: ground handling companies are vital to the aviation ecosystem and cannot continue to subsidize airline operations at their own expense. The industry must adapt, and fair pricing is a step in the right direction.
