Aviation stakeholders have voiced differing opinions on the prolonged dispute between domestic airlines and ground handling firms over the more than N9bn owed to handlers by carriers, cautioning that unresolved financial disagreements could further threaten stability in the country’s aviation sector

The dispute, which recently prompted the Aviation Ground Handlers Association of Nigeria to threaten a strike before shelving the action after the intervention of the Nigeria Civil Aviation Authority, has continued to attract reactions from industry stakeholders and aviation experts.

Speaking with The PUNCH, industry experts shared their perspectives on the development, stressing that both airline operators and ground handling companies play vital roles in the nation’s aviation sector.

In his view, Former Rector of the Nigerian College of Aviation Technology, Samuel Caulcrick, said ground handling companies deserve support from the Federal Government just like airline operators given their strategic roles in flight operations.




“The Aviation Ground Handlers Association of Nigeria, NAHCO, SAHCO, Butake, Precision and Swissport are owed over N9bn by local airlines for critical services such as passenger check-in, baggage handling and ramp operations. Unfortunately, relief can only come in the form of discounting their obligations to the Federal Government,” he said.

Caulcrick explained that while airlines had received some intervention measures, their demands were still not fully addressed, especially concerning the downward review of the five per cent Ticket Sales Charge and Cargo Sales Charge, which he said continue to impact seat occupancy and cargo utilisation.

He also proposed the establishment of a centralised financial clearing structure for the industry, stressing that modern technology platforms could help eliminate the rising debt profile between airlines and handlers.

“Various technology platforms now exist for instant credit for services, but it could be easier if processed by a singular financial clearing institution such as IATA or through a dedicated vehicle like the proposed Aviation Development Bank that will be the sole approved bank to handle all financial transactions in the Nigerian aviation industry,” he added.

The former NCAT rector further stressed that airlines and handlers remain mutually dependent within the aviation ecosystem, noting that a collapse in airline operations would significantly affect the revenues of ground handling companies.

Also speaking, the Director of Research at Zenith Travels, Olumide Ohunayo, argued that government intervention in the aviation sector should not be limited to airlines alone, insisting that other private investors within the ecosystem also deserve support.

“Ground handling companies are privately owned just like the airlines. So, whatever incentive that is being given to a section of the industry should flow round to other investors who have brought their funds in to make profit and also to keep the nation going economically,” Ohunayo said.

He maintained that airport concessionaires, handlers and other aviation service providers were equally affected by the high cost of aviation fuel and the difficult operating environment confronting the industry.

On the issue of the N9bn debt, Ohunayo said the current credit arrangements between handlers and airlines should be reviewed, adding that airlines should not be allowed to accumulate liabilities for long periods.

“I think as we have listened to the airlines, we should also listen to the ground handlers and airport concessionaires too. All other private investors in the aviation ecosystem being affected by this fuel price directly or through their services to the airlines should also be considered.

“I think the credit window to the airlines should be looked at and should not be more than two weeks moving forward, while the outstanding debts can now be negotiated on the terms of payment by the airlines. N9bn is huge, and it is surprising that the handlers could allow the liability to climb to that figure before raising an alarm,” he added.

The aviation analyst further urged the NCAA to intervene by setting clear financial guidelines that would protect both handlers and airlines from future disputes.

According to the Managing Director of Flights and Logistics Solutions Limited, Amos Akpan, the dispute highlights deeper structural challenges within Nigeria’s aviation industry, warning that short-term interventions would not address the sector’s persistent financial difficulties.

“Every business operator providing services in the aviation industry would appreciate a better enabling environment to conduct their businesses. We cannot continue to apply piecemeal palliative measures as solutions to recurrent problems. Airlines are affected, handling companies are affected, cargo and travel agencies are affected, maintenance companies are affected, and even regulatory agencies are affected,” Akpan said.

According to him, the aviation sector requires a coordinated national development strategy that integrates airline operations, infrastructure, maintenance, manpower development and financial policies.

“Aviation as a catalyst for business flow should be considered at the national policy formulation stage. What we are doing now is a fire brigade approach to the sector’s problems. Other countries are building airports with futuristic designs to attract and grow traffic while we are still refurbishing old infrastructure,” he stated.

Akpan explained that debt accumulation in the sector stems largely from the inability of airlines to generate enough revenue to offset rising operational costs, saying, “The only way to avoid accumulation of debt is spot payment on provision of handling service or prepayment before service is offered. Debts accumulate because the cost of operations is more than the income of the airlines.”

He, however, acknowledged that handlers and airlines depend on each other for survival, noting that the aviation ecosystem remains largely symbiotic.

“They are interdependent. The handling company exists to provide services to the airlines. Without the airlines there wouldn’t be a need for the handling companies. The same applies to other service providers and ancillary services within the industry,” Akpan added.

On his part, the Chief Executive Officer of Belujane Konsult, Chris Aligbe, urged ground handling companies to adopt stricter financial systems to stop the recurring debt crisis between them and domestic airlines.

He argued that handlers should enforce stronger payment conditions instead of allowing liabilities to pile up over time.

Unlike some other stakeholders, however, Aligbe opposed calls for government incentives for ground handlers, insisting that airlines face more severe operational challenges due to slimmer profit margins and rising fuel costs.

Aligbe said, “They must put a system in place that will cut off the issue of airlines owing them. Before they offer you services, you have to pay, or when they offer you services, you pay. That was what happened in the fuel market when marketers changed the system after airlines failed to pay.

“The airlines’ margin of profitability is very low compared to handling companies and some other subsectors. Anything that distorts operational costs impacts airlines more than it affects others. The handlers don’t use fuel as much as the airlines do.”

Aligbe also warned against excessive collaboration among handlers, noting that such arrangements could conflict with anti-competition regulations: “They don’t have to come together to work in order not to be owed. Each of them should put a system in place that will not allow them to be owed. They should work differently.”