The Managing Director of Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku is billed to speak on airports viability at the forthcoming Airport Business Summit scheduled to hold in July at the Murtala Muhammed Airport, Lagos.
This was disclosed by the Chairman of Airport Business Summit, Mr Fortune Idu in Lagos on Wednesday.
Speaking in his office at the NIGAV centre at Lagos airport, he revealed that Kuku recently approved the inclusion of the airport managers’ workshop in airport route development and marketing, saying there is need for airport managers across the country to posses skills to maximize airports potential to generate revenue,.
According to Idu, to support these noble intentions for airport repositioning, airport micro-managers must be trained to understand the concept of airport viability from the development point of view.
He said the airport managers are to be positioned as the airport’s chief marketing officers and business development managers.
“Although airport concessions and other public-private partnership schemes have remained high on the government’s list of options to increase the economic viability of Nigeria’s airports, preparing the airport managers to understand the role of each player – the Federal government, state, airport authority, investors, users, and stakeholders – is a crucial aspect, which the airport manager’s workshop at the airport business summit will highlight”., he said.
He noted that the old approach of building an airport and expecting airlines to find routes is no longer sustainable. Instead, a more comprehensive plan and complete business case are required for all airports to connect people and cargo and be economically viable.
“This is what the Managing Director of the FAAN is trying to achieve, and the task is for all airport Managers to key into this objective, making the airport more viable” .
Idu said Kuku has highlighted the importance of airport viability as one of the key factors in refocusing the operations of FAAN’s 23 airports in Nigeria, in order to provide sustainable air transport support services.
He remarked that since she came to FAAN, her focus has been on internally reviewing processes and restructuring management to align the workforce towards increasing airport revenue and reducing wastage.
“Managing 23 airports in a densely populated country like Nigeria presents a significant challenge for any organization. Ensuring that all airports are equally profitable and contribute to the government’s revenue is no easy task. Currently, only four airports can be considered financially viable”
“However, the importance of connecting Nigeria’s states through air travel is undisputed. When considering the value of this connectivity, all of Nigeria’s domestic airports are equally valuable as they serve as the main catalyst for the country’s growth”.
He noted that most of the airports in the country were developed at the request of the State government, and operated without initial business viability or a strategic master plan, but simply to fulfil a need for interstate connection.
“In this case, the airport becomes a crucial infrastructure for connectivity and economic development, similar to a road. However, unlike other intermodal infrastructure, the operational cost of running airports, with or without adequate” passenger usage, is exceptionally high.
He noted that the present administration is seriously considering how to generate enough income from the other airports, recognising that the airport is a business.
“Reviewing the airports’ capacity and potential is an important pillar in Mrs. Kuku’s strategic plan. It also aligns with the Honourable Minister’s continued remark that all airports should develop a master plan that identifies their long-term ambitions and strategies, where the development process will be periodically reviewed to accommodate future growth projections”, Idu added.
