Air Peace: $42m Loss Due to Poor Aircraft Handling in Nigeria

• Air Peace has lost $42m in revenue due to repeated damage to its aircraft by ground-handling companies.
• Three major aircraft damage incidents have occurred within the past 12 months, with two occurring this year.
• On average, SAHCO and NAHCO damage Air Peace's aircraft at least twice a year.
• The handling companies have agreed to pay $3.8m and $3.2m for repairs to two damaged aircraft.

Air Peace has lost a significant amount of revenue due to repeated damage to its aircraft, with the airline estimating that it has lost $42m so far.

Air Peace has been plagued by repeated damage to its aircraft, resulting in significant financial losses. The airline has suffered three major aircraft damage incidents within the past 12 months, with two occurring this year. According to Air Peace's spokesperson, Efe Whiskey, the handling companies, Skyway Aviation Handling Company Plc and Nigerian Aviation Handling Company Plc, are responsible for the damage. On average, SAHCO and NAHCO damage Air Peace's aircraft at least twice a year. The financial impact of these incidents extends beyond the cost of repairing the damaged aircraft, as Air Peace also loses revenue while the aircraft remains grounded.

The financial consequences of poor aircraft handling have been severe for Air Peace. The airline has lost a significant amount of revenue due to repeated damage to its aircraft. According to Whiskey, the revenue lost so far is $42m, with an additional $3.8m and $3.2m paid by the handling companies for repairs to two damaged aircraft. The cost of repairing damaged aircraft or their components can be substantial, with some repairs requiring the transportation of parts abroad. This has resulted in additional costs for Air Peace, including towing and cleaning expenses.

The incidents involving Air Peace's aircraft raise questions about the regulatory framework governing ground-handling companies in Nigeria. Aviation law in Nigeria requires ground-handling companies to adhere to strict safety standards. However, it appears that these standards have not been consistently enforced, allowing for repeated incidents of aircraft damage. The Nigerian Civil Aviation Authority (NCAA) has a responsibility to ensure that ground-handling companies comply with aviation regulations. It is unclear whether the NCAA has taken adequate steps to address the issue of poor aircraft handling.

Lawyers and compliance officers should be aware of the potential for significant financial losses due to poor aircraft handling, which can lead to costly repairs and revenue loss. They may need to advise clients on the importance of selecting reliable ground-handling companies to mitigate such risks.

Source: Original reporting via The Guardian Nigeria