… hails competition as SAHCO offers customised services to airlines
The Managing Director and Chief Executive Officer of the Skyway Aviation Handling Company (SAHCO) Plc, Mr. Basil Agboarumi, has noted the need for an upward review of ground handling charges in Nigeria to enable the companies in this sub sector of aviation to cope with the reality of doing business in the country.
Recall that up until 2022, ground handling charges in the country were not reviewed for 30 years, which led to a series of requests and appeals by the Aviation Ground Handling Association of Nigeria (AGHAN) to the necessary authorities before a benchmark upward charge was eventually approved in 2022.
Agboarumi made his expression known while fielding questions in an interview with JustNet News, adding that the benchmark pricing has provided the opportunity for competition in services and actually leading to an enhanced quality service by SAHCO to its various clients.
However, while thanking God that the review was obtained then regretted that increase in charge has become a drop in the ocean with the current trend of things in the country, stressing that if there had not been any upward review at all by now the nation’s ground handlers would have closed shops.
He said: “If you see the way the country has been since that time we must first thank God that the review was done because if the review was not done then, possibly by now we would have packed our loads out of the system because before that time the pressure was already very much in terms of so many things.
“Look at the forex, the cost of diesel, the economy generally in terms of inflation was hitting us very hard so this was as I said in 2021 when we muted the need for the review.
“So finally we pushed it through in 2022 but you know what has happened in Nigeria between 2022 and now so the review that we did just became like a drop in the ocean. It became like a drop in the ocean because at the time we did that review the forex was still about N400 and that was nearly after we came out of the pandemic.
“Then N400 plus, N500 plus and I think that was where it was whereas, as of today the cost of the foreign exchange has gone up to almost about N1200 or more which affects every other thing we do here even up to the power that we utilise, everything goes up so that is like I said, we thank God that the review was done because it could have been worse but I can tell you that the impact is already swallowed up. I mean the positive impact that we had with that review is already taken away, again by inflation and the cost of doing business in this system.”
According to him, the ground handlers are looking at the challenge and of course strategising on the next step to take on this.
He noted that the airlines move with the wind, though it is also very tough on them but they increase the price of tickets from time to time to cushion the impact of the inflation in the country, while the ground handling service provider remains on the same pricing.
The SAHCO boss however, stated that at the right time they will cry out, when it gets to the stage that the centre will not be able to hold again and then Association of Ground handlers of Nigeria (AGHN) will do the needful.
His words: “What we are doing about that is that we are taking it as it comes day by day and we are looking at it and of course strategising on the next step to take on this. The beauty of this is that you can see the airlines move with the wind. Yes, I know it’s also very tough on them but you can price a ticket now and in the next hour go and cost that same ticket the cost has changed upwards.
“So they can do that but we of course since 2022 to now we have not had another increase so we are already looking at the figures and at the right time we know that we will cry out, when the centre will not be able to hold again.
“AGHAN have an executive so I believe that when the time is ripe the association will do what they need to do.”
With the benchmark charge, Agboarumi stated that room for completion on service was created, an opportunity they (the ground handlers) longed for because everybody consuming aviation business needs the right service.
In view of this, he said SAHCO as professionals had to up its game to ensure that the services it provides can compete with the international best practices so that when any airline comes to audit its activities everything that it presents is in tune with international best practices.
Agboarumi said this has led to the acquisition of certifications that are also recognised internationally by the company having become an ISAGO and R83 licensed ground handling company, enabling it to take cargo to European countries and also enable airlines to take cargo from the European Countries to Nigeria.
He added that the SAHCO management recently also took the company through ‘ISO 9001’ helping it to standardise its processes and operations so that whatever it declares in terms of documentation in its SOP is exactly what it does.
The Managing Director pointed out that other certifications could be limited in terms of the operation but ISO takes care of everything that SAHCO does in terms of its standard, saying that the summary of this is to ensure that the customer or the client is given the kind of services that they will always want to return back for more.
In the area of cargo, he said SAHCO ensures that the right ambience and environment also are maintained in its warehouses to ensure that cargo activities receive the right kind of services that they require in terms of imports and exports.
“The approval we got that time was a benchmark meaning you cannot go below this neither can you go above it. So and of course you know that means there could still be an allowance you could play with in competition.
“Now regarding the question you have just asked, what we have always asked is that let’s have an opportunity to compete because competition is good for business. It’s good for the customer, it’s good for the clients; in this case the airline and any other person that consumes what we do and it means that we now have to compete on service and we understand that everybody consuming aviation business needs the right service.
“The airlines want to have the right kind of service, in terms of how you manage their aircraft at the ramp and all of that services that the aircraft will need, in terms of how the passengers are managed, in terms of how their cargo is handled and managed.
“For us as the ground handling company we are professionals and what we have done is to up our game to ensure that the services that we are providing can compete with the international best practices so that when any airline comes which they will always come, to audit our activities everything that we are presenting is in tune with international best practices and what has that brought out in us? First we ensure that we have certifications that are also recognised internationally.
“For some years now we have been an ‘ISAGO’ licensed ground handling company, not just that we have continued to do renewal of our four stations – Lagos, Abuja, Port Harcourt and Kano. These are the major stations where you do international operations.
“We are we are also what we call ‘R83’ licensed organisation; this also enables us to take cargo to European countries and also enables airlines to take cargo from the European Countries to Nigeria.
“Recently also we took the company through what we call ‘ISO 9001’ and what is it also doing for us? It is to help us to standardise our processes and operations so that whatever we declare in terms of what we have documented in our SOP is exactly what we do and of course you see other certifications could be limited in terms of the operation but ‘ISO’ takes care of everything that we do in terms of our standard. And I can tell you that the summary of this is to ensure that we give the customer or the client the kind of services that they will always want to return back for more.
“Most of the time we pride ourselves as partners to our clients so we know what the clients want, immediately they pick us up as their ground handling company and then we put ourselves in their place and ensure that when we represent them we represent them just the way they want to represent themselves so that the kind of services that we offer to their own clients; to the people that use those airlines are what we can call customised services, even exceeding the expectations that they have.
“Of course there are so many things that go into this; ensuring that you have the right kind of staff deployed to such operations with the right kind of trainings, you also ensure that you have the right kind of equipment deployed to such operations because our kind of services utilise quite a lot of equipment so that’s why we continue to invest massively in equipment.
“Also when you talk about cargo we ensure that the right ambience and environment also are maintained in our warehouses to ensure that cargo activities receive the right kind of services that they require in terms of imports and exports,” he explained.