States Building Unviable Airports, Passing Liability To Federal Gov’t – FAAN

The Federal Airports Authority of Nigeria (FAAN), on Tuesday, accused state governments of building unviable airports in their various states

Speaking at the 2024 edition of Airport Business Summit and Expo (ABSE), titled, ‘Addressing Airport Viability as a Key to Successful Aviation Business Ambition,’ held in Lagos, the director, Commercial and Business Development, Adebola Agunbiade, stated that, state governments are passing liability of the unviable airports to the authority.

Agunbiade, who was represented by the department’s general manager, Hyacinth Ngwu, while speaking on ‘Airport Revenue Planning,’ disclosed that, only Lagos, Abuja and either Kano or Port Harcourt airports are viable in Nigeria.

According to him, other airports are liabilities to the airport authority.

He, however, advised that FAAN should demand an actionable business plan from the state government before taking over any unviable airports.

“It’s high time FAAN asked the state government for an actionable business plan before taking over state airports. It’s not for states to rush to build airports and they pass liability to FAAN. They should come out with a business plan on how to encourage airlines to fly into their states.

“Airlines are about economically viable airports and if a state is economically viable, passengers will naturally come. Also, the state government, as part of attraction, should come with incentives that will attract airlines to the states,” he said.

The FAAN director, however, recommended landing and takeoff waivers for airlines as well as rebates in offices and avio-bridges as parts of incentives that will encourage airlines to the respective state airports.

To him, “FAAN doesn’t owe airlines and airlines only go to a route that is profitable. How we can encourage airlines to ply state airports is through incentives from the airport authority such as giving landing and takeoff waivers, subsidised rates for airlines offices and avio-bridges.”

Also, he said, for an airport to be viable, it  should handle a minimum of one million passengers yearly.

“According to Aviation Council International (ACI), for an airport to break even, it must facilitate an average of one million passengers annually and only three airports are currently doing that in Nigeria,” he stated.

Speaking earlier, convener of ABSE, Fortune Idu, said the programme will usher in a new era of airport management as the old set of the Nigeria Airports Authority (NAA), staff who were the founders of the airport industry of today are gradually exiting the system.

“This is a game-changing programme for airport managers and the first airport marketing contest which is aimed at improving Nigeria’s airport business profile. The result of this program will usher in a new era of airport management as the old set of the NAA staff who were the founders of the airport industry of today are gradually exiting the system having served this great nation in merit.

“A new breed of airport managers is being born and, in this information, and artificial intelligence age, the system of leadership and management recruitment and training must promote competence and innovation. Programmes like the ABSE help to set a positive competitive spirit and improve professionalism and will channel the frontier of the new era,” he pointed out.