The Chairman of the House Committee on Aviation, Rep. Nnolim
Nnaji(PDP-Enugu), gave the order at an investigative session with the NCAA,
AGHAN, Airline Operators of Nigeria, AON and International Air Transport
Association, IATA.
Earlier in the session, Rep. Nnolim said "We invited
them to look at this and see what will come out of it. People have started
flying and we don't want a situation where we will get into trouble. If the
ground charges are increased, flights will drop and it will affect the
industry.
"We know that there is a need to increase or reduce,
but decisions on issues like this, cannot be taken in isolation. It is the Dg
of the NCAA, that was supposed to speak on this issue m, but since he is not
here, we will talk with the directors", he however later added that
"for now, let us maintain the status quo(there shouldn't be a hike)".
The hearing was adjourned to Wednesday next week October 6,
2021, for further deliberations on the matter.
Earlier in his submission, on behalf of the President of
AON, Alhaji Abdulmunaf Yunusa Sarina, the President of Air Peace, Chief Allen
Onyema, kicked against the hike, insisting that it was unacceptable to
airlines.
He stated in part that "The Airline Operators of
Nigeria(AON), is deeply concerned by the potential impact the recent approval
granted by the Ministry of Aviation and the Nigerian Civil Aviation Authority,
NCAA, to Ground Handling Service Providers, to increase Ground Handling
Charges, will have on the air transport industry and the nation at large.
"The new ground handling charges, which are expected to
take effect from October 1, 2021, for international flights and January 1,
2022, for domestic flights, have been increased by an astronomical margin of
between 100% and 1,200%.
"Put into perspective, international ground handling
charges which used to be $400 are now $5000 depending on the aircraft type.
Also, domestic ground handling charges which used to be from N10,000 pee flight
will now increase to between N20,000 and N70,000 depending on aircraft type.
"Sir, while the Ground Handling Companies May have
their argument why they believe such an increase is necessary, we are of the
opinion that the timing is rather ill-timed and unfortunate in the light of the
fact that the aviation industry is barely trying to find its footing and is yet
to recover from the negative impact of the COVID-19 Pandemic which continues to
ravage the industry globally ".
He lamented that "Airlines ordinarily are, as of today,
burdened with over thirty-seven(37) multiple taxes, charges and levies
inflicted on them by various government agencies. And this already puts
airlines in a very difficult situation".
According to him, "while airlines are finding a way to
get the government to streamline these multiple taxes and ease the pressure on
Nigerian travellers in order to jumpstart the economy, the recent increase in
ground handling charges, will only serve to inflict additional pains and
increase cost on the airlines as well, as the Nigerian passengers whose
disposable income, have been stretched to an elastic limit.
"The Ground Handling Companies seems to be insensitive
to the plight of the Nigerian travelling public in view of the fact that this
additional cost, will end up being passed on to the customers who have already
reached their elastic limit because of the harsh economic situation "Mr
Samson Fatokun, who spoke on behalf of IATA, also kicked against the planned
hike, as he decried that airlines, were already "In Survival Mode, due to
devastating Covid-19 impact".
He told the Committee, that revenue from the industry
"Dropped by 66% in 2020 vs 2019 in Nigeria", as according to him,
"domestic and foreign airlines are facing restricted access to Foreign
Exchange, as $171million airline funds are blocked in Nigeria".
He also told the committee that the Federal Airports
Authority of Nigeria, FAAN, increased has also imposed "Passenger Service
Charge by 100% in 2020", in the face of "inadequate Airport
Infrastructure ".
Fatokun recommenced that the stakeholders should "Allow
time for bilateral negotiations between individual airlines and Ground Handling
Companies".
Vice President of AGHAN, Ahmed Bashir Gulmah who spoke on
behalf of his President, Mr Olaniyi Adigun, insisted that the hike was
justified.
According to him, "The last one handling rates were
reviewed in Nigeria, was in 1986 about 35 years ago! This was at a time when
the United States dollar was 80k, but today, as we all know, a dollar is over
N412".
The association requested "the cooperation of the
National Assembly (Committee on Aviation) to support and favourably consider
the new safety threshold handling rates, which will take effect from October 1,
2021, for international operations and January 1, 2021, for domestic
operators".
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