… applauds CTC implementation in Nigeria
Bi-Courtney Aviation Services Limited (BASL), operators of Murtala Muhammed Airport Two (MMA2), has called on the government to develop economic activities at Nigerian airports to drive traffic and develop routes.
Over the years eminent stakeholders have harped on the importance of developing non-aeronautical activities of economic value at airports to make them viable.
The Chief Operating Officer (COO) of BASL, Mr. Remi Jibodu, said routes impact on capacity, noting that some routes are not very well serviced while others like Lagos, Abuja and Port Harcourt are well utilised.
Jibodu was speaking when the management of BASL played host to the executive members of the League of Airport and Aviation Correspondents (LAAC) at the company’s office at MMA2 in Lagos on Tuesday.
He posited that to balance the disparity, the government should endeavour to create trade centres in various airport locations to speed up economic activities.
His words: “So if you bring in capacity today, what the airlines are looking at is, if I put this capacity, am I going to fill it? But, you know, the first thing that must happen is to establish trade centres, and the airport is just the one to ensure that, we connect those trade centres since economic activities are already there.
Jibodu emphasised that airline operation is not about one way but that both ways have to be calculated. “One of those things we encourage the government is to ensure that we develop the economic activities. We have new airports coming up, you know, states and all of that.
“But the truth about it is that do they have economic viability for you to be able to sustain that airport? So we are looking at that, to ensure that when government increases the activity, the connectivity will be very easy”, he added.
Jibodu applauded the federal government implementation of the Cape Town Convention (CTC) Practice instituted last year, stressing that it will aid capacity in the industry.
According to him, CTC will encourage airlines to be able to get dry leases, which means streamlining aviation equipment financing, cost reduction and flexibility in the choice of utilising local crew as against foreign crew.
He said: “When you look at most of the aircraft that we brought in, maybe in November, December last year, you would realise that, because it was summer period, a lot of them were cheaper to get, at least at that time. And it was at serious costs, even at that. I have airlines that have to return their aircraft because they can’t cope with the lease agreements.
“And in Nigeria, unless you have private funds, if you look at the financial institution, vis-a-vis what is happening in the industry now, you have interest rates of about 30 per cent plus. The inflation is about 24.7 or thereabouts. So it means that if you are borrowing money from the bank, it is going to be very difficult for you to break even, especially when they are putting the cost in terms of lease agreement on you”.
Jibodu believes that with dry lease, airlines would be able to maintain existing crew, which also would develop our own pilots in Nigeria, increase revenue and also be able to employ more people.
He however, harped on the viability of routes as a major contributory factor to capacity.
Though MMA2 has facilities for a smooth transition from the car park to customers’ final boarding gate, Jibodu emphasised that the company has a lot of things in between in relation to the vast space available at the terminal.
He said that BASL is harnessing the large space available at the terminal, stressing that in the last two years, the company has seen fantastic things springing up.
With over 100 tenants, he pointed out that the number is increasing as another bank is coming on board.
“Even in terms of rentals, I think a bank is coming up again. So we are going to be having more outlets. So we are not just an airport or an airline”, he stated.
The COO disclosed that the terminal welcomes about 10,000 to 15,000 people, including the footfalls, that come in and out of the facility on a daily basis. He therefore encouraged the government to ensure that they expand what they are already doing.
Continuing, the COO said the company started a cold storage last year, to contribute to the cargo chain, noting that Nigeria has lots of cargo going by road which is risky.
“So now, if we have a dedicated freighter system, which we are encouraging; we are talking to some people about this. We want more people to come into the business, so that we would be able to move these goods and redistribute all over Nigeria”, he said.
On concession, after 18 years of managing MMA2, Jibodu said that, with what the company has achieved over the years, they should have that first right of refusal of any airport in Nigeria.
He affirmed that having done it for almost two decades, BASL has the capacity to be able to extend the same management prowess to any airport in Nigeria, and even the West Coast.
Commenting on passenger traffic at the terminal, he said “from April last year downwards, it was not as good as what we have from January. Immediately, Dana Air left, you understand.
“At some point, we also had very serious economic issues. I think around July, August, when the fuel went to about 4,000. It readjusted after one or two months. Then by October, it started picking up again and all of that. So we have this ups and downs.
“Averagely, it’s better than what we had in 2023. We believe that we are still going to do better this year. Looking at the foreign exchange, I think it has come down to 1400.
“It is a little bit stable. This is because before, every week or every day, you are having debt going back and forth. So it’s a little bit stable.
We believe that probably the government and the economic team will do something better this time around. They will rebase their economy. But majorly for us, it’s productivity. Because that’s what gives traffic. So if the productivity increases, then this year will be a very fantastic year”, he said.
The Chairman of LAAC, Mr. Idris Suleiman, in his remarks commended BASL, urging them to continue to sustain seamless facilitations, just as they have been doing.
He said: “Passengers’ comfort is uppermost in aviation business so the terminal management in collaboration with airlines must always ensure prompt, seamless facilitations to ensure they get to their destinations on time.”
According to the LAAC Chairman, the terminal pride itself as the leading privately managed terminal on the African continent and it should continue to improve on their facilities and processes.
“On behalf of LAAC, we pledge to support the management and urge a symbiotic relationship between the organisation and the league”, he concluded.