NAHCO Aviance will begin running Osubi Airport, based in Warri, Delta State. The ground handling company only just recently signed an MoU with Shoreline Group, the airport’s operator.
With the agreement clinched, NAHCO will provide exclusive handling, passenger, ramp, and carry out cargo operations for all aircraft and airlines that fly into the airport, including Arik Air, Aero Contractor and Escravos, which is also operated by Aero.
With the air cargo business reeling from headwinds such as the exchange rate uncertainty, and the drop in import/export trade as a result, this deal could offer brief respite for the handling company.
NAHCO saw its 2014 revenue remain flat at N8.133b, compared with N8.092b in 2013. Pre-tax profits fell by 22% in 2014, while profit after tax showed a 30% decline from 2013 levels.
For the first half of 2015, revenue showed an increase of 8.9%. Pre-tax profits however fell by 3.6%, while PAT dipped by 1%.
Osubi airport recorded aircraft movement of about 5,028, going by 2011 estimates (more recent data was not available). This accounted for 4% of total aircraft movement recorded in the country in that year. This compares with 39,000 for Murtala Mohammed airport, the busiest in that year.
Passenger traffic at Osubi was recorded at 144,000 in 2011, accounting for 2% of total passenger traffic during the year.
NAHCO also has operations at Enugu, Asaba and Sokoto airports.
With this deal, in addition to the fact that H2 is a peak period for the aviation industry due to the increase in passenger and cargo traffic, the company could be getting set to overshoot projected full year revenue.
