How To Set Up A Licensed Ground Handling Services Company In Nigeria

Ground Handling involves services aimed at facilitating air flights, ground operations including but not limited to repositioning, and pre/post- flight services which according to one opinion devolves around 5 categories which are :-

– Aircraft appearance & provisioning

– Catering

– Ramp servicing

– Passenger services

– Field operation services

This article deals with the provisions governing licensing for ground handling services in Nigeria which is regulated by the Nigerian Civil Aviation Authority(NCAA)

What are the requirements for ground handling license applications in Nigeria?

-An applicant seeking Licence to operate ground handling services in Nigeria shall be required to forward a written application to the Director General, Nigerian Civil Aviation Authority (NCAA) on or before a date not less than six(6) months to the desired commencement of operations.

-This application letter for the Licence must contain the following particulars:

1. Name and official company;
2. address(es) of applicant;
3. Applicant’s CAC Registration Number (RC);
4. Contact telephone numbers;
5. Valid e-mail address(es);
6. Names and nationalities of Directors of the company at the bottom of the page;
7. The type of ground handling services to be provided;
8. Proposed airport or airports where applicant intends to provide the service(s).

What are the stages of ground handling services licensing in Nigeria?

– The Pre-qualification Stage

At this stage the applicant is expected to fulfill the following requirements:

 (i)    Payment of One Million Naira (N1, 000,000) non-refundable processing fee to NCAA.  (Bank Draft             made payable to the NIGERIAN CIVIL AVIATION AUTHORITY);

(ii)    Obtain and complete pre-qualification processing forms and return same to NCAA with evidence of payment of the One Million Naira (N1, 000,000) non-refundable processing fee;

(iii)  The following supporting documents must be submitted to the NCAA before processing of the application  can commence:

(a) A copy of the Certificate of Incorporation of the company;

(b)  A copy of the Memorandum and Articles of Association of the company with minimum authorize                     share capital of Five Hundred Million Naira (N500, 000,000.00);

 (c)        Copies of Tax Clearance Certificates of the company and of each of the Directors for the last three(3)  years;

(d)   Company exposition detailing the ownership and management structure, applicant’s experience  in  the area of the proposed services it intends to provide, name and experience of technical partners (if any) etc;

(e)    Comprehensive details of technical partner including name, address, experience, nature of partnership arrangements etc. Documentary evidence should be provided;

(f)    A copy of a detailed Business Plan on the operation indicating, among other things:

• Proposed services to be rendered such as passenger handling, baggage handling, ramp services, freight and mail services, flight operations, crew services, surface transport services, aircraft services, catering, etc.
• Marketing analysis including market segments, target market & customers, customers characteristics, customers needs, etc.
• Competitive analysis such as industry overview, nature of competition, primary competitors, competitive products/services, opportunities, threats and risk, etc
• Marketing and Sales. These should address who the major customers will be and how they will be reached, marketing strategies to be used etc
• Scope of applicant’s Operations giving comprehensive details of facilities & equipment required and their cost, management structure, staffing plan (employment plans, training and remuneration), operational procedure etc.
• List of key personnel (including the safety and security Managers) with details of their qualifications, skills, experience etc. Copies of their curriculum vitae should be provided;
• Financial plan including estimated costs of setting up the business, Projected revenue, scheme of charges, profit and loss projection, cash flow projection, balance sheet projection, etc (the assumptions used for the computations should also be stated).
•  Operational Manual containing the company’s proposed Standard Operating Procedure on the services to         be rendered. This should contain details of how the operations will be conducted in accordance with IATA  Ground Handling Manual. This should also contain a sample of the Service Level Agreement (SLA) the applicant intends to have with the airlines;
•  Applicant’s Manual on Safety Management System (SMS);
• Applicant’s Security Manual which should show its understanding of the relevant provisions of ICAO        Annexes such as Annex 9 on Facilitation and Annex 17 on Security; and
•  Dangerous Goods Manual which should also be in accordance with ICAO Annex 18 on Safe Transportation of Dangerous Goods.
•  The applicant may be required to provide additional documents and information depending on the          type(s) of services(s) it intends to provide.

– The NCAA upon receipt of these documents and evaluation of same shall:

(a)      Invite the Promoters/Directors of    the company to a meeting with the NCAA officials;

(b)      Seek the comments of the Airport Operator/Owner on the proposed operation;

– THE  QUALIFICATION STAGE

An applicant shall be qualified for this stage if the Authority is convinced that the applicant-company has the potential to carry out the business and comments are received from the Airport Operator/Owner about the proposed operation.

(i)      Evidence of financial capacity to undertake the business;

(ii)     Proposed commensurate Insurance Policy and/or insurance arrangement being put in place; and

(iii)    Duly completed Personal History Statement (PHS) forms and two(2) passport photographs  in  respect  of each of the Directors of the company (the PHS forms  are available at NCAA). The NCAA will seek security clearance from the Presidency on behalf of the applicant.

Upon satisfactory fulfillment of these requirements by the applicant, NCAA will request the applicant to acquire the necessary equipment and demonstrate its capability to carry out efficient services.

The Demonstration Stage 

The applicant will be required to demonstrate its ability to offer efficient services in accordance  with the provisions of ICAO Annex 9 on Facilitation and Annex 17 on Security.

License Issuance  

 A substantive Licence shall be issued to an applicant by the NCAA, upon satisfaction that the  applicant has demonstrated its ability to offer safe and efficient services.

What is the validity period of a ground handling services license?

The validity of a Ground Handling Services Licence is Ten (10) years.

What are the next steps to follow upon the issuance of a ground handling services license?

-Subsequent upon receipt of Licence, a utilization fee of Two Hundred and Fifty Thousand Naira( N250,000.00) shall be paid to the Nigerian Civil Aviation Authority annually.

 -Audit of ground handling company shall be carried out yearly to ensure that set standards are  maintained.