Some stakeholders in the aviation sector are warning against what they describe as interference by the House Committee on Aviation, against the directive by the Nigeria Civil Aviation Authority (NCAA) for airlines to implement new ground handling safety rates.
Recently, the NCAA gave approval to ground handling companies in the country to increase the new safety threshold handling rates after 36 years with commencement dates slated for October 1, 2021 (for international) and January 1, 2022 (for local) operators, but the House Committee on Aviation directed it to stop the implementation.
With the new rates, the handlers could charge between $1,500 and $5,000 (passenger and cargo flights) for narrow and wide body aircraft on international routes, respectively, while for domestic operators it was upped to N20,000 and N70,000, depending on the aircraft type.
With the approval, the ground handling companies in Nigeria; the Nigerian Aviation Handling Company (NAHCO) Plc, the Skyway Aviation Handling Company (SAHCO) Plc, Precision Aviation Handling Company Limited (PAHCOL) and the Swissport Handling Company, were expected to charge the same handling rates as their counterparts in other African countries.
But with the recent interference on NCAA’s directive, implementation of the new ground handling rates have been unable to take-off.
Stakeholders are warning that Nigeria may lose the United States Federal Aviation Administration (USFAA) Category One Status if the political class such as the National Assembly, especially the House Committee on Aviation continues to interfere unnecessarily.
“I think the National Assembly should back off from interfering with the decisions taken by the regulator of the industry. This will not augur well for us. We cherish our achievements on the safety level, based on the prowess of our regulator and the ability to sustain it over the years and that has made them retain all certifications,” Olumide Ohunayo, director, research, Zenith Travel said.
Ohunayo said stakeholders in the sector would not want all the safety status achieved to be ridiculed by interference in the decisions taken by the regulator.
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“This is never done and never accepted. The world is watching us. So, we appeal to the House Committee on Aviation and Senate Committee to back off from the decisions taken by the NCAA with respect to the industry.
“Rather, all they can do is to advise or raise a resolution and pass it across to the regulator or ask other industry players to speak on such issues instead of interfering directly on such issues. It boomeranged with what has happened with AOC of NG Eagle and it also boomeranged with the pressure being put on the ground handlers,” he advised.
Gabriel Olowo, President, Sabre Network, West Africa and president, Aviation Round Table said political interference especially where it hinges on safety should be condemned in very strong terms, adding that global aviation frowns at such scenarios.
Olowo also the increment in the ground handling rates are justifiable given global economic indexes on all factors of production that have increased astronomically, including severe currency fluctuations.
“Refusal by the government not to allow the prices to be driven by market forces suggests that the operators may be enjoying all sorts of subsidies, waivers, etc,” he said.
John Ojikutu, CEO, Centurion Security Services said what the NCAA did is the oversight right given to it by the provisions of the economic regulations in the Nig CARs Part 18 on all operators – government or private and allied services.
Ojikutu added that the handling rates approved for the ground handling companies are not different from similar provisions for the airlines fare tariff; unfortunately, it has not been known if any airline has ever applied for fare increase.
“The Nig.CARs is a legal authority of the NASS to the NCAA to perform the functions of regulating service rates and fare charges. None of the NASS chambers can interfere into the law it has legislated on except the Court. The problem of our legislators is that they have no sufficient knowledge of how the laws they made work for the purpose they were meant to serve.
“Political interference has been some form of deterrence in the progress of our economic sector and has caused the defunct or the downfalls of most Nigerian airlines, including the Nigeria Airways.
“Political actors in and out of government often ask for debt concessions or government intervention funds for private operators and sometimes government services providers where they have personal and individual interests,” he explained.
A former director in the NCAA who craved anonymity said he was concerned about what is going on at the moment as the NCAA went through the ministry, agencies and the national assembly in getting the regulation.
The director said that the NCAA should be allowed to carry out its duties without political interference as this is very important, stressing that the issue should be resolved because it is not good for the industry and the nation.
“Category One is the highest rating and if we neglect it, we can be relegated. This has happened to many countries because of cases like these in the past,” he added.
