Ground handling companies and indigenous airlines in Nigeria are currently at an impasse over the introduction of a safety threshold ground handling charge. Despite the Nigeria Civil Aviation Authority’s intervention, the dispute remains unresolved.

NCAA DG Capt. Chris Najomo met with both parties on Friday to resolve the dispute, but the issue remained unresolved.

He then directed airline operators and ground handling companies to schedule another meeting.

Najomo also instructed both parties to resolve the dispute by Wednesday, ahead of another scheduled meeting on the matter.

Ground handling companies had introduced a new tariff last year, revising charges that had remained unchanged for about three years.

The new charge was reportedly increased by about 200% to align the safety threshold fee with prevailing rates in many African countries.

If implemented, airlines may have to pay between N200,000 and N300,000 to handle a Boeing 737 aircraft, up from the current N70,000. Handling charges for a CRJ and similar aircraft could also rise to between N150,000 and N250,000.

Over the past three years, domestic airlines have increased fares by over 700%, while ground handling companies have struggled to adjust their charges due to strong opposition. Previous attempts to raise handling fees were met with stiff criticism from airline operators.

At the meeting, it was gathered that the ground handling companies defended the new charges, insisting that due consultations were conducted before the increase.

They argued that the increment was less than 300% and was necessary due to the continuous depreciation of the naira against foreign currencies, among other economic challenges.

The handlers declared that the various ground support equipment used for handling aircraft by the companies were imported.

Meanwhile, Aero Contractors Managing Director, Ado Sanusi, criticized ground handling companies for unilaterally increasing handling rates.

He warned that the hike could destabilize Nigeria’s already fragile aviation industry and worsen its existing challenges.

However, aviation consultant Chris Aligbe dismissed claims that ground handling companies had formed a cartel or engaged in price fixing, as speculated in some quarters.

Aligbe stated that Nigeria has three ground handling companies: Butake Handling Company, Skyway Aviation Handling Company Plc and Nigerian Aviation Handling Company Plc.