Route development and airport revenue optimisation have been identified as some of the critical items needed for the growth of aviation industry anywhere in the world.
This is as the Federal Airports Authority of Nigeria (FAAN), accused some State governments of building unviable airports in their various states and handing over to the agency for development and management.
Dr. Richard Aisuebeogun, Vice Chairman Airport Business Summit, in his opening remarks at the 2024 edition of Airport Business Summit and Expo (ABSE), title: ‘Addressing Airport Viability as a Key to Successful Aviation Business Ambition,’ held in Lagos, recently that the intention of State and Federal governments to have airports or airstrips in almost all 36 states of the country was supposed to enhance air connectivity and improve logistical inclusion both for passenger movement and cargo or freight services.
Aisuebeogun noted that the success of such national ambition would only be measured by the viability of these airports in meeting the economic sustainability index and usability. But, noted that to attain this ambition, it was necessary to have route development and airport revenue optimisation planning from the beginning of the development to implementation and operations.
The former Managing Director, FAAN, also emphasised that Nigeria’s air transport was challenged by stunted growth occasioned by poor policy decision and direction worsened by the global and national economic recession. He added: “However, both national and regional expectations of the industry are high for the delivery of an efficient and effective air link that will serve as a catalyst for the much-needed accelerated national economic growth and recovery.
“The Federal government through the Ministry of Aviation and Aerospace has identified the critical role of the aviation sector in this journey has initiated various strategic programmes that will identify the short-term deliverables and the long-term programmes for achievement of sustainable prosperity.
“Interestingly, many of the sub-national governments are developing airports for this reason. On the other hand, critics argue that these ventures only amount to good politics, but bad economics.” He added that for the industry to attain its desired growth, it required innovation and creativity from both airport development planners and management teams.
He maintained that the success of any airport could not only be driven by the performance of personnel that run them, but maintained that these personnel also depended largely on government and owners’ investment in the airport.
Besides, Mr. Adebola Agunbiade, Director, Commercial and Business Development, FAAN, has accused State governments of building unviable airports in their various states.
Represented in a panel session by Mr. Hyacinth Ngwu, the General Manager, Commercial and Business Development of the agency, Agunbiade decried that the State governments were passing liability of the unviable airports to the authority. According to him, only Lagos, Abuja and Port Harcourt airports are viable in Nigeria, while others are liabilities to the agency.
He posited that for any airport to be profitable, it must have a minimum of one million passengers annually. This, he attributed to the statistics delivered by the Aviation Council International (ACI). He therefore advised that FAAN should demand actionable business plan from State governments before taking over any state-owned airports.
He said: “It’s high time FAAN asked State governments for actionable business plan before taking over state airports. It’s not for states to rush to build airports and then pass liability to FAAN. They should come out with business plan on how to encourage airlines to fly into their airports.
“Airlines are about economically viable airports and if a state is economically viable, passengers will naturally come. Also, state governments as part of attraction, should come with incentives that will attract airlines to the states.” He however, recommended landing and take-off waivers for airlines as well as rebates in offices and avio-bridges as parts of incentives that would encourage airlines to the respective state airports.