Ground Handling Firms Renew Call For Tax Waivers To Support Aviation Sector

FG Calls For Local, Foreign Investment In Aviation Sector

Skyway Aviation Handling Company (SAHCO) Plc has again appealed to the federal government to grant tax waivers and other incentives for ground handling companies, especially on imported spare parts and operational equipment.

The company said the appeal has become urgent due to rising operational costs in Nigeria’s aviation industry and the need to prevent further job losses in a sector that plays a critical role in national economic growth.

Speaking at the inaugural Airport Gateway Forum of the League of Airport and Aviation Correspondents (LAAC) in Lagos, SAHCO Managing Director, Adenike Aboderin, said ground handlers continue to subsidise services for domestic airlines to help keep the industry stable and ensure ticket prices remain affordable for travellers.

She noted that the rates airlines pay for ground handling services do not match the actual cost of equipment used for operations. She warned that increasing the rates would directly impact airfares and other charges.

Aboderin explained that SAHCO alone spent about five million euros on equipment in the last two quarters, with each unit costing at least 150,000 euros. She said this level of spending makes government support necessary.

She called for single digit long term loans for ground handling firms and said the federal government must extend incentives already given to airlines to the ground handling subsector as well.

Aboderin added that SAHCO is implementing a diversification plan that includes acquiring land for an aviation school, a training centre, a warehouse, and a hotel. She said the company is also investing in new technologies and eco friendly systems such as electric ground support equipment and an environmental management system aligned with ISO 14001 standards.