The Group Managing Director /Chief Executive Officer, Nigerian Aviation Handling Company Plc (nahco aviance)
The management of Nigerian Aviation Handling Company Plc (Nahcoaviance Plc) has said granting 100 percent waiver on cargo storage in the aviation sector of the economy may not be possible since there are no indications that Federal government is giving any financial exchange for storage waiver in the sector as done in the maritime sector.
The advice was coming on the heels of the agitation by cargo agents on ground handling companies in aviation to grant them 100 percent waivers on demurrage on cargoes stored in their facilities during the six weeks of lockdown occasioned by COVID-19.
Advising the agents to seek alternative request on granting of waivers, the leading ground handling company in the aviation sector in Nigeria, in a statement signed by its Head, Corporate Communications, Samuel Akinrinmade said: “Cargo agents are asking for 100% waiver on storage. Their demand is based on the premise that an agency of government, Nigerian Ports Authority (NPA) is taking on the financial burden of the 100% waiver at the seaports and issuing credit notes to Port Terminal Operators. This is not the case in aviation, as Ground Handling Companies have not been informed by Nigerian Civil Aviation Authority (NCAA) or Federal Airports Authority (FAAN) that government is giving any financial exchange for storage waiver in the aviation sector,” insisting that, “We have shared this fact with the cargo agents and asked them to direct their protest appropriately.”
The statement further explained that Nahco and other ground handling companies, “have had to provide critical handling services in support the management of and fight against COVID 19 at extra costs and in the challenging circumstances in the last 6 weeks of lockdown and closure of airports and airspace (except for approved essential and emergency flights).
In addition, NAHCo affirmed that warehousing services especially ensuring shipments in their custody have been kept safe, and in good condition at a huge cost.
“We are a responsible corporate organization, employing over 2,200 Nigerian and affecting over 100,000 people in Nigeria directly and indirectly,” it added.
It explained, “COVID 19 has affected the aviation industry the most. Today, our industry is faced with revenue loss and cash crunch. Ground Handling Companies are critical aviation service providers and greatly affected. Our cost of operations has risen materially in light of the new safety measures in our operations and all the safety equipment, systems, PPE etc, which we have put in place for our staff, customers and stakeholders.”
While appreciating the efforts of the Minister of Aviation Sen. Hadi Sirika, Nigerian Civil Aviation Authority.(NCAA) and Federal Airports Authority of Nigeria (FAAN) at stabilizing the sector despite the huge loss accrued as the COVID-19 pandemic crisis ranges, NAHCO said, “We are challenged and meeting our obligations to staff and paying all that is due to Federal Airport Authority of Nigerian (FAAN), charges such as 5% of our revenue as concession fee, rent and Service Recovery Charge, etc.”
Adding that ground handlers in the aviation sector are like their counterparts, Terminal Operators in the seaports, are private concerns in the transportation sector, it therefore, advised the cargo agents many of whom work in Custom Bonded Warehouses both at the seaports and airports and or belong to associations that operate in same, understanding, should therefore direct their grievances in the right direction away from the Ground Handling Companies to the appropriate quarters to ensure their desire results of equity in all Customs Bonded Warehouse”whether in the seaport or airport.”
