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🇳🇬 Nigeria /Economy & Trade

Air Peace Claims $42 Million Revenue Loss Due to Aircraft Damage by Handlers

From The Punch · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Air Peace reports losing approximately $42 million in revenue due to repeated damage to its aircraft by ground-handling companies.
  • The airline states that three of its aircraft have been significantly damaged in the past 12 months, with ground handlers damaging aircraft an average of twice annually.
  • Handling companies have agreed to pay $3.8 million for the most recent damage and have already paid $3.2 million for a previous incident, but revenue loss is not compensated.

Nigerian airline Air Peace has revealed substantial financial losses, estimating revenue loss at around $42 million due to persistent damage to its aircraft by ground-handling companies. The airline detailed that three of its planes have suffered serious damage over the last 12 months, with ground handlers averaging two incidents per year.

The number of ground handling accidents that we have experienced thus far, on average, SAHCO and NAHCO damage our aircraft at least twice a year.

— Efe WhiskeySpeaking about the frequency of aircraft damage incidents.

Efe Whiskey, spokesperson for Air Peace, stated that while the airline has experienced three major damage incidents in the past year, with two occurring this year, the frequency of damage from Skyway Aviation Handling Company Plc (SAHCO) and Nigerian Aviation Handling Company Plc (NAHCO) averages twice annually. "The revenue lost so far, especially from one aircraft, is $42m," Whiskey explained, highlighting that while handling companies cover repair costs, they do not compensate for the lost revenue.

The revenue lost so far, especially from one aircraft, is $42m. It is the airline, of course, that loses. They don’t pay for that revenue. They only pay for the damage.

— Efe WhiskeyExplaining the financial impact of the damages.

Agreements are in place for compensation, with the handling companies set to pay $3.8 million for the most recently damaged aircraft. Additionally, $3.2 million has already been paid for repairs to another aircraft damaged on Boxing Day. However, the financial strain extends beyond repair costs, encompassing expenses for transporting damaged aircraft or components abroad for specialized repairs, which can cost up to $40 million for shipping alone. Towing and cleaning costs also add to the burden, with towing alone costing $700 per incident.

So, they have agreed now that they are going to pay $3.8m to fix the latest one that they broke.

— Efe WhiskeyDetailing the agreed compensation for the most recent aircraft damage.

Air Peace's disclosure sheds light on the operational challenges and significant financial implications faced by airlines due to the actions of ground-handling services. The airline's spokesperson expressed ongoing concern over the repeated incidents and their impact on its operations and profitability.

Then the previous one that they broke on Boxing Day is $3.2m. They have paid $3.2m.

— Efe WhiskeyReferring to the compensation paid for a prior aircraft damage incident.
About this summary

Originally published by The Punch in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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