Stakeholders in Nigeria’s aviation industry have urged the Federal Government to extend financial incentives and policy support to ground handling companies amid growing concerns over their financial sustainability.
The operators warned that the survival of ground handling firms was being threatened by over N9 billion owed to them by domestic airlines, coupled with the worsening impact of the ongoing Middle East crisis on aviation operations.
Industry experts who spoke at the weekend argued that the handlers, like airlines, deserved government support because they provide critical operational services including passenger check-in, baggage handling, cargo operations and ramp services.
Daily Trust reports that the appeal came weeks after the Federal Government approved a 30 per cent discount on charges, levies and taxes for airlines to cushion the impact of rising operational costs.
The handling firms had earlier threatened to withdraw services to the domestic airlines over the debt before it suspended the plan following intervention by the NCAA.
Chairman of the Aviation Ground Handlers Association of Nigeria (AGHAN), Olaniyi Adigun, said the association had already suspended a planned industrial action following the intervention of the Nigeria Civil Aviation Authority (NCAA), but stressed that urgent measures were still required to avert a deeper crisis.
Adigun lamented that the debt profile of airlines to handling companies had continued to rise despite repeated efforts to recover outstanding payments.
According to him, the government should not limit relief measures to airlines alone, as other operators within the aviation value chain are equally affected by the harsh operating environment.
Also speaking, former Rector of the Nigerian College of Aviation Technology (NCAT), Samuel Caulcrick, said ground handlers deserved intervention measures considering the huge debts airlines owed them.
Caulcrick suggested that the government could grant handlers discounts on statutory obligations owed to government agencies instead of direct financial bailouts.
He also proposed the establishment of a central financial clearing system for the aviation industry through the proposed Aviation Development Bank (ADB) to ensure prompt settlement of debts among operators.
According to him, handlers should also embrace technology-driven payment systems to prevent airlines from accumulating fresh debts.
He warned that the continued build-up of unpaid obligations could cripple the operations of handling firms if not urgently addressed.
On his part, aviation analyst, Olumide Ohunayo, argued that it would be unfair for airlines alone to benefit from government incentives while other private investors in the aviation sector face similar economic pressures.
Similarly, aviation consultant, Amos Akpan, said the recurring financial challenges confronting operators in the sector reflected deeper policy and structural weaknesses within Nigeria’s aviation industry.
However, another aviation consultant, Chris Aligbe, opposed calls for special incentives for handling companies.
Aligbe argued that airlines currently operate under slimmer profit margins and face heavier operational burdens compared to ground handlers.
He advised handling companies to adopt stricter payment mechanisms capable of preventing airlines from accumulating additional debts.