Aviation ground handlers seek tax waiver as SAHCO records 57% rise in revenue

The aviation ground handling sector has renewed calls for tax waivers and government support with the Managing Director of the Skyway Aviation Handling Company PLC (SAHCO), Mrs Adenike Aboderin saying the tax incentive or waiver would save the aviation industry.

The foremost ground handling firm also announced a remarkable 57 percent revenue growth, despite the harsh economic climate confronting the industry.

Speaking with aviation correspondents in Lagos during a Gateway Forum, the Managing Director revealed that the company has managed to deliver strong financial and operational results despite rising inflation, escalating foreign exchange rates, high utility costs and the increasing price of imported equipment and spare parts.

She explained that these factors continue to squeeze operators across the aviation value chain.

According to her, SAHCO’s revenue rose to N31.7 billion for the period ended September 30, 2024, up from N20.1 billion recorded in the same period last year. Gross profit grew by 47 percent to N18 billion, while profit before tax surged by 82 percent to N10 billion, reflecting the company’s resilience and aggressive operational optimisation.

She noted that the impressive performance was achieved through deliberate investments in technology, infrastructure upgrades, sustainability initiatives and streamlined processes.

These include e-billing systems, in-house flight and budget management apps, cybersecurity enhancements, and the establishment of a new Resource Allocation Department. The company recorded 27 percent cost savings year-on-year as a result of these digital reforms.

Despite SAHCO’s successes, the GMD stressed that the broader ground handling sector remains under intense pressure, making tax waivers, import duty concessions, and regulatory support crucial for sustainability of their operations.

She pointed out that most equipment required in the sector are imported, making operators vulnerable to foreign exchange volatility.

“We are facing heavy headwinds,” she said, adding, “Overheads are rising, inflation is high, forex is unpredictable, and the cost of equipment continues to increase. Tax waivers and government support will go a long way to help ground handlers remain competitive and continue delivering value.”

Beyond finances, SAHCO highlighted milestones in regulatory compliance, revealing that it holds the highest number of industry certifications among Nigerian ground handlers.

The company has also expanded its presence to over 22 airports, signed new partnerships with state governments, and secured contracts with both local and international airlines including Air Tanzania, ValueJet Regional, Air Algérie, Ethiopian Airlines (Abuja), and United Nigeria Airlines Regional.

The company, she stated, is also deepening investments in electric ground support equipment (GSE), solar-powered charging stations, and large-scale improvements to cargo handling infrastructure, including cold rooms and export processing facilities.

According to her, plans are underway to launch a full e-commerce logistics platform and expand operations into at least two additional African countries by next year.

As part of its diversification strategy, SAHCO announced the launch of a new subsidiary offering helicopter services to the oil and gas sector, alongside existing ventures such as SS Travels and its airport lounges.

The MD stated that the company’s outlook remains bright, driven by strong partnerships, sustained investments, and a commitment to operational excellence—but emphasised that sustained growth for the entire sector depends on policy intervention.

“With the right support, particularly through tax waivers and incentives, ground handlers can continue to grow, modernise, and support national aviation goals,” she said.

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