Competition Forces Cargo Handling Firms to Reduce Service Charges
Chinedu Eze
Two Nigerian leading ground handling firms, the Nigerian Aviation Handing Company Plc and the Skyway Aviation Handling Company Plc are engaged in stiff competition that have forced them to crash the amount they charge for their services.
THISDAY investigations revealed that the competition is so rife that the two companies, which enjoy a duopoly in the industry charge about 30 per cent of the cost of service in other countries, including West African nations.
This even forced the Nigerian Civil Aviation Authority to
AVIATION
intervene recently and expressed fear that the low cost of their services could compromise safety as the two companies may not have the resources to maintain their service and equipment at the given safety standard.
Confirming the stiff competition between the two operators, the Managing Director of SAHCOL, Mr. Basil Agboarumi told THISDAY that the competition between the two companies had been like that for a long time.
He said among aviation ground handling companies in the world, NAHCO and
SAHCOL are the most underpaid; yet the two companies go through the same certification like similar companies in other parts of the world.
“We go through the same certification, we conduct similar training, we deploy similar equipment and in addition to that; we are operating in a very harsh environment. NCAA has called our attention to this because they said it might compromise safety. We had a meeting with them. They fear that the low prices could be detrimental to safety so we hope they resolve this problem,” he said.
Agboarumi, said the low price they charge for their services was not good for business because the airlines seem to be exploiting the handling companies, noting that it was the same world standard service that they offer to their customers and due to the efficiency of SAHCOL service, the company has even won global awards.
“What is happening is not right for business. The airlines have so much money but they pay us peanuts. Ground handling companies are the same all over the world. We allow ourselves to be ripped off by airlines. We are not supposed to compete on prices;