SAHCO (Skyway Aviation Handling Company) has revealed that as a result of strategic deployment of cutting-edge technologies and implementation of standardized processes, it has achieved a 27 percent reduction in operating costs last year.
It said this milestone underscores the company's commitment to leveraging innovation to enhance efficiency and financial stability in a challenging operating environment.
The company attributed this cost-saving achievement to the integration of advanced technology tools, including e-billing systems, resource allocators, improved IT infrastructure, flight and budget applications, document enhancement software and strong cyber security measures.
These innovations have collectively optimized operations, reduced overheads and streamlined processes, helping SAHCO deal with the complexities of rising costs in the aviation sector.
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SAHCO emphasized that these cost-cutting strategies were needed due to rising operating expenses in the industry, driven by factors such as increased overhead costs, inflation, fluctuations in foreign exchange rates, increased utility expenses and higher costs of foreign-sourced equipment.
The company said that through its proactive approach towards technological advancement, it has successfully mitigated these challenges while maintaining its position as a leader in the aviation management sector.
Speaking during the Gateway Forum organized by the League of Airports and Aviation Correspondence at SAHCO head office in Lagos at the weekend, the Managing Director of SAHCO, Adenike Aboderin, indicated that the company has been able to keep administrative expenses significantly low by leveraging technology to run processes, thereby reducing costs.
Aboderin said despite the company's cost reduction strategies, it continues to deliver value to its stakeholders, shareholders, customers, airlines across over 22 networks, locations, with a vision of being the leading brand handling company in West Africa and even beyond West Africa, Sub-Saharan Africa.
“SAHCO increases financial flexibility by improving efficiency, investing in technology and fostering partnerships, reducing costs by 27 percent year-on-year through new digital tools and streamlined processes.
“To drive future growth, SAHCO is expanding into new markets, adopting eco-friendly equipment, and investing in workforce training and service quality. These efforts delivered strong financial results, including 82 percent profit growth, 57 percent revenue growth and N13 billion increase in assets,” he explained.
He listed some of the global certifications obtained by the company to optimize operations, which include International Standards and Compliance Certifications ISAGO HQ, ISAGO LOS, ISAGO ABV, ISAGO KAN, ISAGO PHC, RA3 LOS, RA3 PHC, RA3 ABV, NCAA DG Authorization, ISPON Corporate CERT, NCAA Ground Handling License, ISO:9001:2015 (QMS), ISO. 14001:2015 (EMS) and TRACKING SCHOOLS AUTHORITY.
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“If you check the revenue of $31.7 billion, our revenue for the same period last year was $20.1 billion, which is an increase of 58 per cent year-on-year, which is highly commendable despite all the adversities that we are going through.
“On gross profit, we had $18 billion with a growth of 47 per cent. Last year it was $12 billion. On profit before tax, we had $10 billion with a growth of 82 per cent for $5.5 billion last year.
“Our total wealth increased from $40 billion to $57.1 billion, an increase of 31 percent,” he said.
According to him, the company has invested heavily in assets, infrastructure, green equipment and sustainable equipment and is gradually phasing out old equipment.
“We had financial resilience and growth by strategically investing in operational excellence, technological infrastructure and sustainable partnerships with our stakeholders, airlines, agents and regulatory bodies.
“We have introduced e-billing to improve faster processing; bills are sent electronically, and payments are also made electronically. We have set up a new department called Resource Allocator Department so that there is efficiency in using our scarce resources,” said the SAHCO MD.
He said budget performance is monitored monthly from an app that guides the company and this has increased efficiency on the financial side.
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“We've gone into cybersecurity to strengthen our controls and protect our software. To streamline and standardize, we all know we're in a regulatory environment. And I'm proud to say that SAHCO has the most certifications of all the handlers,” Aboderin said.
He revealed that the company is going to partner with some African countries on training and will open its own training school for them
Aviation Vocational Training.
He said, “People will now come for not just handling, but check-in, baggage handling, training both in the air and on the ground. Instead of traveling abroad, people can now be trained in Nigeria. We are building a new training school, which will be even bigger than the one we have here. Ultimately, we are hoping it will become an academy.”
