Viable airports, air transport key to economic growth – Stakeholders
Some stakeholders in the aviation industry have said that properly positioned and viable airports, along with efficient air transport, could significantly catalyse economic growth in Nigeria.
The stakeholders said this at the opening ceremony of the Airport Business Summit and Expo 2024 during the week in Lagos.
The Vice Chairman, Airport Business Summit, Dr Richard Aisuebeogun, while moderating a panel session, said that the airport master plan was crucial to creating strong roots for revenue generation.
Commending the efforts of the Federal Airports Authority of Nigeria (FAAN), Aisuebeogun identified some factors and tools for airport viability which are; route development and airport revenue.
He identified some challenges to airport viability as stunted growth, policy summersaults, political and economical challenges, among others.
“The intention to have airports or airstrips in almost all 36 states of the country is supposed to enhance air connectivity and improve logistical inclusion both for passenger movement and cargo or freight services.
“The success of such national ambition will be measured by the viability of this airport in meeting the economic sustainability index and usability.
“Air transport is a strong catalyst for economic growth, which is why the federal government identified the role of aviation as a critical sector for economic growth.
“We should be talking about 10 percent of the population flying, but we currently have less than that flying.
“Hence, the need for summits such as these to appraise the airports,” he said.
The Founder/Convener of the Airport Business Summit, Mr Fortune Idu, said that the summit was meant to afford Nigerian airport managers, stakeholders and industry players a platform for business exchange and airport investment opportunities among others.
Idu said that it had become necessary to have an airport master plan, which would serve as a direction for all industry regulatory agencies and players
He said that air traffic in Africa has been projected to grow at a rate of 4.3 per cent.
“The Single Africa Air Transport Market (SAATM) is the African Union’s single air space initiative to facilitate regional movement and trade.
“SAATM is expected to bring stability and growth to the industry. This will help maximise the potential of air transport use in Africa, making regional and domestic routes more feasible.
“However, the industry has encountered significant challenges including currency devaluation, global recession, unstable supply and high aviation fuel costs, and high cost of infrastructure development.”
The Director of Commercial and Business Development, FAAN, Ms Adebola Joy, who was represented by a Director in the authority, Mr Hyacinth Ngwu, said that only three airports were currently making the one million passengers mark annually.
Ngwu said that generating non-aeronautical revenue was necessary for sustainability of airports, noting that partnerships would necessitate the goal.
“The best way of revenue generation for airports should be via strategic partnership.
“Even in route development, strategic partnership, we really need to partner with stakeholders to develop the airports.”
According to Ngwo, incentives, rebaits and waivers are ways the authority provides leeway for airlines.
He decried the rate at which states were building airports without due consultations with FAAN and calling on the authority to manage the facility.
He said that sometimes, these states hardly presented a business plan that would be beneficial to the authority, making it difficult to ascertain the viability of the airports.
The Director of Special Duties, FAAN, Mr Henry Agbebire, said that the authority was doing a lot in the area of cargo transports to ensure agricultural products were moved down to the south and also for export purposes.
He said that this, among others, were some of the strategies put in place to ensure the viability of airports across the country.
Moderating the panel, an aviation consultant, Mr Chris Aligbe, urged FAAN to look beyond generating revenue via non-aeronautical channels.
The three-day summit, the ninth in its series, is entitled: ‘Addressing Airport Viability as a Key to Successful Aviation Business Ambition’.
The stakeholders said that the theme aligned with the aviation economic revamp plan of President Bola Tinubu by improving revenue generation.
Airport regional managers and managers pitched their airport business viability presentations to a panel for possible award and investment opportunities.
Capturing the international communities, Mr Josiah Mvula, Airport Planning and Business Development Zambia Airports Corporation Ltd., spoke on Airport Revenue, while Ms Apple Lee, Munich Airport International Specialist on Route planning spoke on Airport Route Development.
