The Nation Newspaper

Tag: Nigerian Aviation Handling Company (NAHCO)

  • ‘We shouldn’t compromise safety in ground handling sector’

    Ground handling is competitive, with operators using pricing to attract clients. But, that should not compromise the business, taking it out of regulatory controls. Group Managing Director, Nigerian Aviation Handling Company (NAHCO), Aviance Plc, Mrs Olatokunbo Fagbemi, tells KELVIN OSA-OKUNBOR why ground handling firms must review their strategies to remain relevant amid other contending issues.

    Despite the fact that ground  handling business has become more competitive, global airlines are divesting from it. What is responsible for this?

    Ground handling business, just like any business endeavour in the air transport value chain, is globally taking different shapes, twists and turns. Only organisations that could think out of the box can survive the increasingly competitive environment. This is purely about how business owners now draw a relationship between costs and returns. For most businesses, which are now core ventures, for instance, an airline involved in ground handling services, the managers have to seriously weigh cost and returns, and if the returns are not worth the huge investments, the better decision is to divest and outsource such arm of the business to another concern. This is fast becoming the trend in the global arena, where bigger airlines are now leaving ground handling business to concentrate on their core mandate of flying passengers.

    Infrastructure upgrade and technology are becoming defining template for driving patronage in aviation sector. How does this apply to ground handling business?

    Over the world, technology is changing the way organisations do business. Only companies that believe they have to modernise operational infrastructure are companies of the future. One good way of doing this, we have realised, is to continue to invest in the operational equipment that will give us the competing edge. If we fail to do this, clients will move to where the business is better organised. That is the secret of the business.

    In Nigeria, ground handling have also imbibed this culture of investment in technology, else they will be left behind in business. This explains why for instance, the Nigerian Aviation Handling Company (NAHCO) Plc, plans to invest over N1.9 billion in operational infrastructure. Without huge investment in equipment, you cannot escalate the growth and development of any company.

    Regulation and compliance are assuming new dimensions in an effort to ramp up operations in aviation and allied sectors. How does this apply to the Nigerian environment?

    Fundamentally, in any sector or business, where there are no regulations, there will be no standards for people to comply with. In the aviation sector, all operations are guided by rules prescribed by both international and local regulators. In Nigeria, all ground handling companies comply with rules set by the International Civil Aviation Organisation and the International Air Transport Association. Compliance is compulsory because of certification issues.

    Interestingly, the Nigerian Civil Aviation Authority is there to ensure that all ground handling companies do the right thing. Besides, the civil aviation regulator, there is also the Federal Airports Authority of Nigeria, which insists that ground handling companies comply with the standard operating procedures. Any failure is often met with stiff penalties. This is an established template that operators understand.

    What is your take on issues of competition and price war among ground handling companies that could compromise safety?

    Every business throws up its issues whether it is price war or competition. What is important is the strategy put in place to handle it without having any negative effects on safety and security of operations. In the Nigerian environment, I do not think there is animosity among the ground handling companies, because of airlines moving from one to another. This is the basis of  a competitive environment. There are areas of competitions and there are also areas operators in ground handling business need to cooperate. In terms of determining prices for the services rendered, operators need to worry about issues of anti-trust. However, there has to be a part where we need to get the regulators to look at, such that we do not compete in such a manner that affects safety and security because that is the most important thing when it comes to air transport. We need the regulators to help in ensuring that there is clear understanding on issues like this, that no matter the level of competition among operators, it should not have any negative effects on the safety and security of ground handling operations at the airport. This is important, because safety and security are critical premium in air transport business.

    People, policy and programmes are pivotal to the growth and development of the aviation business. How applicable is this model in the running of ground handling activities?

    The hallmark of any good manager is the ability to deploy human and material resources to achieve success. One of the best ways of doing this is to put in place policies and programmes that will bring about a conducive business environment for people to thrive. Specifically, they should come from the industry regulator, the airport authority and other service providers to make it convenient and cost friendly for business to carry out ground handling in Nigerian airports. If this is done, the industry will be big enough for the anticipated growth.

    Recently, some changes took place in your organisation. What informed such initiative?

    Sometime in the middle of last year, we had some changes in the ownership structure of NAHCO. As a result of that change, the board of directors changed also. I joined the board as a non-executive sometime in August. One of the things I tried to do with the former MD was to look at the business review of the business itself because at every point in time, it is important for business like ours to go forward. We cannot plan to move forward if we do not know where we are.

    What were the steps taken to achieve the new drive in the company?

    We had to invest and we are still investing with KPMG on a business review and as part of that review, is that we have a new vision and mission and a new core statement and value, and we decided that we will run as a group structure.

    What has changed in the corporate values needed to change the narrative?

    Our new vision is not too far from the old vision, which is to be the leading service provider and reshaping our chosen market. Our mission is to consistently provide exceptional services, using professional teams, cutting edge technologies and leading practices to deliver value to all stakeholders, and our differentiating competent is service excellence.

    We have added empathy to our core value. Our core values are safety, integrity, reliability, respect and empathy. Empathy for us is very important because we want to operate in the place of excellence so that we are not just saying we are delivering customer service, but delivering customer service from the perspective of ‘how do you feel?’ and hopefully we believe that whether it is for the internal or external customer that come, it will be a great place for people to work in and a learning organisation. We want our turnover to grow by over five times and we want to grow across the Africa continent. We have a  five-year strategic plan.

    How do you hope to achieve this objective?

    We are going to invest heavily in our people and in automation. Automation does not mean that people will be laid off. Despite automation, people will still be employed. I know usually when we have changes like this, the first thing is that people are afraid, but things will be different and we will bring more professionalism. NAHCO today is the leader in this industry and we want to maintain that leadership, but we don’t want to be the leader without using excellent service. We want to be the leader, driving the business with innovations, with the right systems and right processes and using service excellence. In a nutshell, this is my story and it is very simple.

    In your five-year plan, what do you intend to invest in your business and human resource? What is expected as revenue?

    We are still fine-tuning the plan, which is why we are doing this with KPMG and we are going to set up a programme management office to drive it. We are looking at growth in the region of five to seven times, which is achievable, given the plans that we have. In terms of investment in equipment, in the last couple of months, we have invested about N1.9 billion in equipment. You will begin to see the equipment by the end of the first quarter. By the end of the year, we will have spent about N3.6 billion in equipment. By September, we will have the next set of equipment coming in , that is what we are doing in terms of equipment. We are going to have a master plan for our facilities. I cannot give you the figure for this because it is based on what comes out of the master plan, but what we are doing immediately is to ensure that we refurbish what we have in terms of our facilities. We will make them look better, these include our buildings, the warehouses among others and improve on all the processes within the system. We are also drawing up a people’s plan for our people. These things are strategic for us.

    What steps are you taking to ensure that you bring back customers you have lost in the past few years?

    I am sure in business you lose customers, so I won’t say it is due to internal challenges because I have not done enough study to be able to tell you what the reasons are. What I will tell you is that we will do everything to retain the customers that we have. We will do everything to attract customers. We want to set new standards, bring professionalism into this service business. We know that as we improve on professionalism, the deserving customers will come to us.

    Are you looking at leveraging price to attract customers?

    In terms of price war, we are in a business where our customers are stronger than us. Most of them are the airlines, and that is the challenge in this ground handling business. Most of these strong customers are implementing the cost-cutting strategies. So, essentially, there is no secret that this brings a lot of pressure on pricing. But one thing that I have begun to discuss is that we should ensure that pressure on price does not drive any company in terms of safety and security in the provision of services. I will champion everything to ensure that the pressure on price does not compromise safety and security.

    Why are airlines divesting from ground handling companies?

    If you cast your mind back, a few years ago, most of the airlines began to divest from ground handling companies it had nothing to do with Nigeria or Nigerian Aviation Handling Company Plc. It had to do with decisions taken from the headquarters for each of the airlines to say which business do we invest in and which business do  we not invest in.

    So, each airline left NAHCO based on the decisions that were made at corporate levels to exit ground handling not just in Nigeria, but all over. dnata has picked up a lot of these airlines and that is why dnata has been able to get a lot of work. dnata is the arm of ground handling owned by Emirates. Lufthansa also in 2016 took that decision, so leaving NAHCO was corporate decision taken in 2016 that finally came to this in 2018.

    I don’t see why a decision taken in Frankfurt, Germany and the United Kingdom (UK), and used for every country should be an issue, if there is no mischief in telling the story and mischief in receiving it. If the truth is taken the way it is, that somebody in Frankfurt took a decision, I do not see why it affects our image. If the truth is told the way it is, it will not be interpreted another way. However, if the truth is told in another way, it will be interpreted as it is told. It is important to know that if Lufthansa had issues with us, they will not be doing business with us.

  • NDLEA arrests Lebanese for alleged drug dealing

    The National Drugs Law Enforcement Agency (NDLEA) on Monday arrested a Lebanese man, Chef Charbel Chalouhi, suspected of using and dealing in drugs.

    Chalouhi, of No. 18, Wahab Ogunbambo Street, off Simeon Akinlonu Crescent, Victoria Island, was arrested following a tip off from worried residents of the area.

    He is being held at the NDLEA’s Nigerian Aviation Handling Company (NAHCO) Lagos Command, Ikeja.

    Read Also:NDLEA raids clubs, hotels for drugs in Oyo

    Also arrested were his Lebanese girlfriend and Nigerian driver, both suspected of being his accomplices.

    The Nation gathered that NDLEA agents trailed Chalouhi and his driver for some time before raiding his home at about 8am, where they allegedly found at least 1kg of cocaine.

    A life-long resident of Simeon Akinlonu Crescent, Mr Samuel Olu, told The Nation that he witnessed the arrest.

    Olu, who said he also works on Victoria Island, said the NDLEA combed several homes in the area and questioned the occupants before arresting Chalouhi.

    “I was just walking on the street and I saw the NDLEA officials when they came in. I saw the event. When they came, they invaded his house, not even his house alone; they went to other houses too. But when they got to know that he was the one, they checked him and they took him away. He joined the NDLEA officials in the car.”

    According to Olu, residents of the area had been living in fear of drug dealers.

    He said: “People in this area have been very careful about complaining to law enforcement agencies about the activities of drug dealers, because such people can be very dangerous. If they get to know that you reported them, you could be harmed. People are living in fear, so the NDLEA should save us, save Nigerian youths.”

    Another witness, who spoke on condition of anonymity, told The Nation that some Lebanese in the country were pressurising the NDLEA to free Chalouhi.

    The source said: “Since his arrest, different Lebanese and top politicians have been calling the Lagos State Area Command and pressurising the investigating officer to drop the case.

    “It has also been brought to our knowledge that they are about to release him between tonight and tomorrow morning without prosecuting him for allegedly dealing in and using drugs, which is supposed to be a minimum of 10 years imprisonment. They refused to investigate his girlfriend.

    “Most importantly, for the security of our Nigerian youths and the prevention of the drug trading Lebanese cartels on the streets of Lekki, Victoria Island and Ikoyi, this case should be used to set an example to foreigners taking over our streets with hard drugs.”

    The NDLEA’s Airport Command spokesperson, Mr Ahmed Garba said he was not aware of the incident, but NDLEA Lagos Area Commander, Aliu Suleiman, confirmed Chalouhi’s arrest.

    “We are still investigating,” Suleiman said.

  • Airport workers interrogated for alleged drug exportation

    Airport workers interrogated for alleged drug exportation

    The Chief Security Supervisor of Nigerian Aviation Handling Company (NAHCO) and three others are currently being interrogated by the National Drug Law Enforcement Agency (NDLEA) for their alleged involvement in the exportation of 144kg of Ephedrine to Maputo, Mozambique.

    The drugs which were concealed in noodle packs and packed in three brown cartons stuffed with cereals and hair products, were discovered by officials at the Nnamdi Azikiwe International Airport (NAIA) Abuja.

    According to a statement by the agency’s spokesman, Mitchel Ofoyeju, one Victor Ahenje, a Load Controller at NAHCO linked to the conspiracy has been declared wanted.

    Ofoyeju sais the suspects planned to smuggle the drugs through an Ethiopian airline flight but it was intercepted.

    Quoting the NDLEA Commander incharge of Abuja airport, Hamisu Lawan, Ofoyeju said some officials at the cargo section were invited for questioning and four NAHCO workers was subsequently detained.

    He said: “Those being interrogated in respect of the seized drugs include the Chief Security Supervisor, Audu Garba, two Security Officers, Nasiru Ibrahim and Haruna Abdullahi as well as a Driver, Adamu Dasura.

    “Preliminary investigation suggests flagrant lapses on the part of NACHO security in charge of cargo. So far, they are cooperating with our team of investigators.”

    Continuing, Ofoyeju said the agency’s Chairman, Muhammad Abdallah has called for proper vetting and re-vetting of airport workers to prevent acts of sabotage and compromise capable of undermining national security.

    He said: “This is a suspected case of conspiracy involving workers within the airport community. The agency is investigating the level of involvement of the suspects under interrogation and anyone indicted shall be prosecuted.

    “Any act of sabotage can cause untold damage to national security. We shall get to the root of this case. The agency is working very hard to promote peace and enhance the image of the country”.

    He assured that efforts were ongoing to arrest Victor Ahenje who is at large. Ahenje hails from Benue State.

  • Perishable cargo exporters lament N100m loss

    Perishable cargo exporters lament N100m loss

    Exporters of perishable cargo/vegetable have lost a whooping N100 million due to government’s closure of export warehouses of the Nigerian Aviation Handling Company (NAHCO) and the Skyway Aviation Handling Company (SAHCOL) at the Murtala Muhammed International Airport, Lagos.

    The warehouse was shut last week by officials of the Federal Operations Unit of Nigerian Customs Service following a tip off that the  bonded facilities housed  stolen and prohibited items meant for exportation.

    This is just as they have stated that government’s closure of the export sheds at the Murtala Muhammed Airport Lagos is sending wrong signals to the comity of international agro-allied supply chain, which portends grave danger for the economy’s agro-allied produce, if not curtailed.

    Speaking to journalists in Lagos on Wednesday Chief Executive Officer of ABX World, Captain John Okakpu said  the agro-allied exporters numbering over one hundred are  worried that  such incident is tantamount to economic loss.
    He said  international off-takers are developing cold-feet with regard to agricultural produce from Nigeria.

    Captain Okakpu, who said the exporters lost over N100million worth of goods within 48-hours the export warehouses were shut.
    He called on the Federal Government through the various Ministries, Departments and Agencies (MDAs) to  urgently commence full-scale investigations into the immediate and remote causes of the warehouses closure to avoid re-occurrence.

    He said  with government’s focus on agriculture as one of the panaceas to the rising inflation, restrictions in capital flows and depleting forex reserves, agro-allied exporters deserve protection as partners.
    The warehouse was re-opened last Wednesday.

    He said: “Gentlemen, the truth is, we have made fundamental mistakes in the past as a nation by becoming a mono-economy. But, we cannot continue to lick the wounds. We have to reverse the case and agriculture provides us with a better option to grow. That is why as agro-allied exporters, we are seriously worried over the actions of some government officials, who seem not to underestimate the peculiarities of perishable items for export.

    “Shutting down the warehouses was actually an indictment on customs, as they (Customs officials) ought to have carried out surveillance before shutting down all export businesses at the Lagos Airport. If such act is not checkmated in future it will compound issues and create a logjam in the system. Or, do we prefer to ship our cargos to countries like Ghana or Cameroun before we can be shipped to Europe and other markets? Presently, the yam sold in Europe as Ghana yams are actually from Nigeria!

    “Go and investigate it! Because we seemingly abandoned our God-given potentials ‘to lick oil’, see how the economy has been battered. We wouldn’t want the issues surrounding brown beans and other agricultural produce from Nigeria, to happen to vegetables and other perishables like ginger, garlic, Nsukka-yellow pepper, among others. That is why we are calling on the Federal Government to urgently investigate the matter and punch who ever are the culprits to serve as deterrent to others. So, as Professor Yemi Osibanjo was inaugurating the new agric road map, those warehouses have been shut. What an irony. Enough is enough!”, he said.

    He said any action contradicting Federal Government’s agricultural road map  launched by the Vice President, Professor Yemi Osinbajo recently should not be treated with levity.

    Supporting Captain Okakpu’s claims, the President, Nigeria Vegetable Exporters Association, Mrs. Oluwatoyin Temitope, said that her company alone lost over N1million worth of cargo within 24-hours of the export shed closure.

    She lamented the widespread impact on the Association’s members numbering over 20. She said, “It was a devastating day for us. We work at night so that as early as 6:00am our partner airline Arik Air would ship the vegetables. So, when the news got to us that customs have shut down both NAHCO and SAHCOL export shed my blood pressure shoot up.

    “I have been on this business for over 30 years; exporting vegetables to South Africa and London almost every week. Unfortunately, the Customs Service and some other government agencies do not have regard for us. They do not any way intimate us before embarking on any clamp down. They know who are engaging in illegal businesses. Ask them, who cleared the items in the first place! In countries like Uganda and Ghana, vegetable/perishable goods exporters are accorded special attention; why is our different?”

    Mrs. Temitope said that the Association members merit to be compensated by the government hence they are legitimately contributing their quota to the development of the economy.

    “Most of us do take bank facilities, so when occasions like this occur you can imagine how difficult it becomes for us to meet up with the demands. Aside that, there are other markets offering more conducive environment; the principal reason most exporters now prefer Ghana to Nigeria. Customs have arrogated powers to themselves to the extent armored tanks were sent to the airport in hunt of illegal exporters whereas no items goes out of Nigeria without passing through Customs clearance. In fact, it should be investigated properly, maybe some secret or unknown forces sabotaging the county will be uncovered”, she added.

    Also, Veronica Ezigbo, managing director of Kiverlin Foods said that the incident should be thoroughly investigated, citing the impact as a negation of President Muhammadu Buhari’s change mantra.

    She said, “The impact is very huge, because we deal on perishable goods. We are ordinary citizens of this country and do not deserve this kind of treatment. Customs officials know the people they are searching for, where and how to catch them. They acted ignorantly, because our line of business is very competitive; if you fail to deliver within few hours the vegetables get damaged too.

    “Think of it, our dear country is faced forex challenges. Is it not common sense that exporters should be encouraged? It takes a lot of stress to conduct this business, especially when Government no financial facility for us. We demand that this matter should not be swept under the carpet. If Nigeria will move forward, if we are sincere about agriculture, then, special recognition should be given to exporters like us”.

  • Fuel Scarcity: Travellers, airport users groan over hike fares

    Travellers and other airport users are currently going through hard times following the increase in transport fares by shuttle operators at the Murtala Muhammed International Airport, Lagos.

    The News Agency of Nigeria (NAN) reports that fares were hiked from N100 to N150 for all destinations within the airport environment while a journey to Ikeja from the airport now cost N200 instead of N150.

    A NAN Correspondent who monitored the situation on Tuesday observed that some persons were seen trekking to their destinations due to lack of commercial vehicles and the increment in fares.

    Those mostly affected by the increment were cleaners and other low income earners working within the international airport and the Nigerian Aviation Handling Company (NAHCO) premises.

    However, Mr Olalekan Agboola, General Secretary, Airport Cab Operators, told NAN that they had to increase fares due to the lingering fuel scarcity in the country.

    “The increment is because of the fuel scarcity. We are praying that the situation presently should return to normal. When everything is okay the transport fare will also drop.

    “We are begging the government that it should intervene because people are seriously suffering right now,’’ Agboola said.

    A cab operator, Mr Sule Ibrahim, said he queued for several hours to buy 20 litres of fuel at N4,000 to enable him to work for the day.

    He said: “We buy fuel at very expensive prices and until the scarcity ends, we don’t have any option than to increase transport fares.

    “We are appealing to government to look into the situation. It is affecting us negatively because we are spending so much time at petrol stations’’.

    Mrs Ada Imohinmi, a ticket officer at the MMIA, said the situation was becoming unbearable, especially for low income earners working at the airport.

    “We are really suffering because of this fuel scarcity. I live at Agbado Ijaiye and now I have to leave home very early.

    “The cost of transportation not only within the airport has gone up and yet, my salary is still the same. So, it is not easy to cope,’’ she added.

    On his part, a traveller, Mr Uche Emenike, said he had no choice other than to pay any amount demanded by the cab operators in order not to miss his flight.

    Emenike said: “From the local airport to the international wing, they charged me N2,000 instead of the usual N1,500 but I had to pay because I was a bit late for my flight’’.

    Another traveller, Mr Michael Ajayi, appealed to President Muhammadu Buhari to find a lasting solution to the lingering fuel scarcity.

    “I just flew in from Abuja and the fuel situation is the same. The government should work harder to fulfill the change promises to Nigerians,’’ he said.