Helicopter Operators Threaten Grounding Over New Landing Fees

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CEM REPORT, AVIATION| The Nigerian helicopter industry is on the brink of a crisis, with operators threatening to ground all flights in response to a recent government directive imposing new landing fees. This move by the Federal Ministry of Aviation, signed by Minister Festus Keyamo, mandates operators to pay landing charges at all Nigerian airports, helipads, airstrips, and offshore oil and gas platforms.

The fees, which would be collected exclusively by a private company, NAEBI Dynamic Concept Limited, have sparked outrage among operators who view them as unjustified and potentially crippling.

“It is simply unacceptable,” declared Ado Sanusi, Managing Director and CEO of Aero Contractors, a pioneer in helicopter shuttle services for the Nigerian oil and gas industry. Sanusi expressed two main concerns: the lack of justification for the fees and the questionable ownership of the landing sites.

Operators, according to Sanusi, already pay for services rendered at existing helipads, most of which are owned by international oil companies operating offshore. He argues that these helipads are not federal government property, and charging landing fees on them is beyond the Ministry’s authority. Additionally, Sanusi highlighted the existing fees paid to aviation agencies by helicopter operators.

“We pay our due charges,” Sanusi emphasized. He further criticized the move, suggesting it contradicts international aviation guidelines. “The International Civil Aviation Organisation (ICAO) recommends cost recovery through service providers, not turning them into profit centres,” he said.

Sanusi also questioned the rationale behind granting NAEBI Dynamic Concept Limited access to operators’ activities, raising concerns about potential security implications. The responsibility for monitoring helipads and ensuring national security, Sanusi argued, lies with security agencies like the National Security Adviser (NSA) and the Air Force.

While acknowledging the government’s desire to increase revenue, a top official from another major helicopter company (who wished to remain anonymous) pointed out “untruthful assumptions” behind the new fees.

“This charge is unknown to the law,” the official stated. They further clarified that existing regulations require operators to pay a 5% passenger flight cost to the Nigerian Civil Aviation Authority (NCAA) on all commercial flights, a system already in place.

The ambiguity surrounding the landing fee structure adds to the frustration. The official explained, “They call it a landing charge, but when I land on the rig, I should pay them? Additionally, the directive states payments must be made in dollars, which doesn’t align with our national currency.”

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The potential impact of a shutdown in the helicopter industry could be significant. Nigeria’s oil and gas sector relies heavily on helicopter services for personnel transportation, equipment deployment, and maintenance activities. Experts estimate that a halt in operations could lead to a daily oil production drop of over 1.1 million barrels, a substantial blow to the nation’s economy.

As tensions rise, negotiations between the Ministry of Aviation and helicopter operators are ongoing. The operators have threatened legal action if the government fails to address their concerns.

The coming days will be crucial in determining the fate of Nigeria’s helicopter industry. If a resolution isn’t reached, the nation could face a major disruption in its oil and gas operations, with significant economic consequences.