The Nigeria Civil Aviation Authority (NCAA) has stepped in to mediate the escalating dispute between indigenous airlines and ground handling companies over the proposed increase in safety threshold ground handling charges. The intervention, led by NCAA Director-General Captain Chris Najomo, comes after airlines protested against the proposed rate hike, calling it excessive and unfair.
At a crucial meeting held on Friday, February 21, 2025, at the NCAA Lagos Regional Office, stakeholders, including representatives from the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA), and key airline and ground handling executives, gathered to deliberate on the matter. The NCAA directed both parties—the Airline Operators of Nigeria (AON) and the ground handling companies, including Nigerian Aviation Handling Company (NAHCO) Plc and Skyway Aviation Handling Company (SAHCO) Plc—to reach a compromise by Wednesday, February 26, 2025.
The controversy erupted after Aero Contractors CEO Captain Ado Sanusi and the AON raised concerns about a 600% increase in ground handling fees. They accused NAHCO and SAHCO of acting as a cartel by arbitrarily inflating charges and blocking competition.
The Association of Ground Handlers of Nigeria (AGHAN) had proposed new rates of ₦400,000 for Boeing 737 aircraft, up from ₦70,000, ₦250,000 for CRJ and Embraer aircraft, up from ₦50,000, and ₦150,000 for Dash 8, up from ₦25,000. For international aircraft, the proposed fees range from $1,500 to $5,000. The increase was set to take effect on April 1, 2024, pending NCAA approval. However, ground handlers argue that the hike is less than 300% and is necessary due to rising operational costs, inflation, and the continuous depreciation of the naira. They warned that failure to adjust rates could lead to the collapse of the industry.
Airlines insist they were not consulted before the new rates were announced, while ground handlers claim they engaged with industry stakeholders before proposing the changes. Aviation consultant Chris Aligbe dismissed allegations of a cartel, noting that other handling companies like Butake Handling Company operate alongside NAHCO and SAHCO. He emphasized that ground handling companies had not reviewed their rates for years, while airlines had repeatedly increased ticket fares.
Sources revealed that ground handling companies attempted to ground a non-compliant airline in January 2025, but the action was halted by Minister of Aviation and Aerospace Development, Festus Keyamo. Following Friday’s meeting, Captain Najomo instructed both sides to meet again on Monday or Tuesday and present a final resolution by Wednesday, February 26. The outcome of this dispute will directly impact air travel costs in Nigeria, as airlines warn that any increase in handling charges will ultimately be passed on to passengers.
