AIRFARE INCREASES: GROUND HANDLING COMPANIES PLAN TO JACK UP CHARGES 03-11-24
By Sadiq Aminu The air travel industry in Nigeria has been plagued by skyrocketing airfares and charges from service providers.
The situation has become so dire that a return ticket now costs a staggering N400,000 to N500,000 depending on the airline and route, a significant increase from previous years.
And it is not just the airlines that are to blame – ground handling companies are planning to hike their charges, further adding to the woes of passengers.
At the heart of this crisis lies a chain reaction of price increases across the aviation ecosystem.
Ground handling companies, responsible for critical services like baggage handling, aircraft cleaning, and fueling, are ready to further escalate costs.
Chairman, Association of Ground Handlers of Nigeria (AGHAN), Mr. Olaniyi Adigun, explained that the proposed increase is necessary to offset rising operational costs, including the escalating prices of equipment, foreign exchange fluctuations, and the stringent international standards they must adhere to.
“Three years ago that increase was made, what was the dollar rate and what is the dollar rate now? If the dollar rate has increased by XY% and diesel has increased by XY%, these are the components that this people use. Most of the ground handling equipment are imported but even the manpower too also have foreign input”.
Aviation expert Group Captain John Ojikutu echoed these sentiments, emphasizing the significant impact of factors like fuel, diesel, training, and employee salaries on ground handling costs.
He argued that the increase is inevitable given the rising operational expenses.
“The cost of operation is increasing, electricity has increased to about 400%, fuel has increased to about 300% so, a lot of operational costs and we should expect that too across board and am very worried”.
Unfortunately, the burden of these cost increases ultimately falls on the shoulders of passengers.
Aviation analyst, Mr. Chris Aligbe noted that while airlines and service providers face immense financial pressure, they cannot sustain operations at a loss. Hence, the need for adjustments in pricing.
“They are suffering under the condition that the airlines are operating that is the condition they themselves are operating”.
To alleviate the situation and foster growth within the aviation sector, AGHAN Chairman, Mr. Adigun called on the government to provide support through tax rebates and customs duty waivers.
“Every business man would at least want to break even, at least give us waivers on taxes. African countries rely heavily on taxes but yes, taxes generate revenue for government but it does not boost the economy”.
He expressed hope that these measures would help ground handling companies and the industry as a whole to survive and thrive.