NAHCO explains why it cannot bear brunt for 100% demurrage waiver

The Nigerian Aviation Handling Company Plc (NAHCO) said its company and other Ground Handling Companies have had to provide critical handling services in support the management of and fight against COVID 19 at extra costs and in the challenging circumstances in the last 6 weeks of lockdown and closure of airports and airspace (except for approved essential and emergency flights).

In addition, warehousing services especially ensuring shipments in the custody of the Ground Handling Companies are kept safe, and in good condition have also been at a huge cost.

Samuel Akinrinmade head, Corporate Communications, NAHCO said cargo agents are asking for 100% waiver on storage, their demand is based on the premise that an agency of Government, Nigerian Ports Authority (NPA) is taking on the financial burden of the 100 % waiver at the seaports and issuing credit notes to Port Terminal Operators.

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“This is not the case in aviation, as Ground Handling Companies have not been informed by Nigerian Civil Aviation Authority (NCAA) or Federal Airports Authority (FAAN) that Government is giving any financial exchange for storage waiver in the aviation sector. We have shared this fact with the cargo agents and asked them to direct their protest appropriately.

“We are a responsible corporate organisation, employing over 2,200 Nigerian and affecting over 100,000 people in Nigeria directly and indirectly. COVID 19 has affected the aviation industry the most.

“Today, our industry is faced with revenue loss and cash crunch. Ground Handling Companies are critical aviation service providers and greatly affected. Our cost of operations has risen materially in light of the new safety measures in our operations and all the safety equipment, systems, PPE etc that we have put in place for our staff, customers and stakeholders.

“We appreciate the work and efforts of the Honourable Minister of Aviation, NCAA and FAAN, even as the Aviation industry continues to face the effects of COVID 19, we are challenged and meeting our obligations to staff and paying all that is due to Federal Airport Authority of Nigerian (FAAN), charges such as five perceent of our revenue as concession fee, Rent and Service Recovery Charge etc. Going forward is an insurmountable task,” Akinrinmade said.