Airlines, others seek Minister’s intervention on multiple charges, taxes

Aviation workers under the aegis of National Union of Air Transport Employees (NUATE) have petitioned the Minister of State for Aviation, Hadi Sirika on what they described as imminent crisis in aviation over exorbitant and multiple taxation/fees, arbitrarily imposed on handling companies and airlines by the Federal Airports Authority of Nigeria (FAAN).

Equally worried by the situation are the two major handling company, the Nigeria Aviation Handling Company Plc (NAHCO) and Skypower Aviation Handling Company Limited (SAHCOL). The two firms with NUATE jointly in a letter dated March 22, 2016 said the irregular, exorbitant and multiple fees imposed on these companies and its workers were without recourse to established rules.

In a swift reaction, spokesman for FAAN, Yakubu Dati told woleshadare.net  that there is a ministerial committee set up by the Ministry to address charges.

Dati noted that it is expected that those with such complaints exploit this window.

According to him, “As a responsible organisation, we await the findings of this highly respected committee.”

They were irked that at the toll plaza, staff pays N12, 500 per staff car per annum while at the Hadji Camp gate, staff pays N10, 000 per staff per annum, (a distance of less than 100meters from item 1).

At the stakeholders’ car park along the Murtala Muhammed International Airport, each worker pays N15, 000 per staff per annum; at the MMA2 car park, staff pay N44, 000 per staff per annum.

At the car park opposite SAHCOL headquarters, FAAN charge an average of N300 per entry; including concession fee of five per cent of Annual Gross Income.

Apron pass costs N150, 000 per vehicle. This has a huge cost implication to companies which have more than 100 vehicles and pieces of equipment.

Equally worrisome to them is rent per square meter of office space per annum which cost N149,021,723.75 in Lagos; in Abuja, it goes for N13,494,060; in Kano N20,247,000;  and Port Harcourt – N22,042,396.80.

Airside Drivers’ License –costs N50, 000 per staff while refreshers pay N25, 000; access card to restricted areas such as tarmac and arrival hall, (where sensitive operations of these companies are carried out) costs N25, 000 per the number of staff to man or operate in such area.

SAHCOL is billed N420, 000 for link road construction which is the duty of FAAN among other exorbitant costs billed airlines, cargo handling firms and others.

To them, the unacceptable financial burden placed on these companies, who are expected to earn profits for their owners, plough some resources back into their operations for rejuvenation, pay salaries and associated overheads have seriously been hindered.

 They explained that the high cost of operations could to lead to downsizing and put in jeopardy four hundred jobs, citing heavy costs of operations.

To them, it may interest the Minister to note that as partners with all these organisations, it is their duty to intervene in this manner by drawing his attention to this grievous matter, more so with its attendant consequences.

The letter signed by NUATE Secretary General, Olayinka Abioye said whereas, “we affirm and have severally advised the Management of FAAN to engage in, and embark on increased internally generated revenue from non-aeronautical and ancillary sources, and whereas the Management of FAAN has deployed its attention in this direction, in conformity with its objectives, and whereas these handling companies, being operators of passengers and cargo handling services require conducive and environmentally friendly airports to fulfil their obligations to its numerous customers, which has continued to add value to FAAN.”

 They called on FAAN to call all their business partners to a round table discussions on its incessant “hike in tariff’ to ensure that industrial harmony reigns within the system.

They carpeted the authority for not fully respecting  the rights of its “ business partners”  in consonance with international best practices, more so as provided for in Section ii of ICAO’s Policies on airport charges, where it was specifically stated that “ consultation with airport users before changes in charging systems or levels of changes are introduced is important.”

The group further stated that the purpose of consultation was to ensure that the provider gives adequate information to users relating to proposed changes and gives proper consideration to their views and the effect the charges will have on them.

They averred that for FAAN to be seen and appreciated by its business partners such as NAHCO and SAHCOL, it must ensure that consultations takes place before any change in tariffs are imposed and should not be an annual event, done in the most shady manner, lacking in transparency, bearing in mind the consequences of the impact on the users..