Airports Authority Proposes Slashing Landing, Parking Fees for Air Peace, Arik Air, Others
- A number of incentives and possible concessions, like a decrease in landing and parking costs, are being assessed by Airports Authority
- By encouraging airlines to use these airports, the goal of this initiative is to increase their economic and financial viability
- Although the authority is willing to sign SLAs, Kuku said that in order to assess the quality of service objectively, a baseline would be needed
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
To entice investors to smaller airports across the country, the Federal Airports Authority of Nigeria (FAAN) is evaluating a variety of incentives and potential concessions, such as a reduction in landing and parking fees.
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FAAN's managing director, Olubunmi Kuku, mentioned this during his speech on Wednesday at the ongoing airport business summit and expo 2024 in Lagos.
According to Kuku in a Leadership report, the purpose of this effort is to make these airports more commercially and fiscally viable by enticing airlines to use them as home bases or to operate flights into them.
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She said it is important to consider driving home base to other airports and expanding markets due to the congestion at Lagos Airport.
She also stated that the business needs additional funding and emphasised that the government can only create an atmosphere that supports the sector—not the resources necessary to keep it going.
“What I call on you for is, for us together, to explore the private sector model, the private sector models that actually work and put in legal entity frameworks that allow those models to favour and protect FAAN,” she added.
The MD stated that these difficulties should be considered and acknowledged the difficulties faced by local airlines, such as those pertaining to fleet size, budgetary restraints, insurance, and foreign exchange.
According to Kuku, certain airports are not running at full capacity. One such airport is Minna Airport, which employs 122 people but is not running at the moment.
Regarding service level agreements (SLAs), Kuku stated that although the authority is prepared to sign SLAs, a baseline will be used to objectively evaluate the quality of service.
A service level agreement (SLA) is a legally binding contract that specifies the services a provider will offer and the standards of service the provider must uphold.
Nevertheless, the MD stated that authorisation from the federal ministry of aviation and aerospace development would be necessary for these tactics to be put into action.
She claimed that when comparing Nigeria's infrastructure to other countries, it is merely the tip of the iceberg and that innovation and technology must be used to full potential.
Kuku commended Fortune Idu, the summit's organiser, for bringing together a diverse group of participants, including unions, airport managers, security agencies, and regulatory bodies.
New international airport set to launch
Legit.ng reported that the Ebonyi State government announced that, as it waits for the Nigeria Civil Aviation Authority (NCAA) to approve the start of commercial flights, it has committed a significant amount of money for runway restoration at the Chuba Okadigbo International Airport.
This was revealed yesterday at the ninth annual Airport Business Summit & Expo in Lagos by its Commissioner for Aviation and Transport Technology, Dr Ngozi Obichukwu.
She claimed in The Nation that the airport's 3.1-kilometre runway has been completely resurfaced and has a utility timeline spanning more than a century.
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Source: Legit.ng
