Why FG needs to rescue FAAN from post COVID-19 disaster —Idu

Key players across the country’s aviation sector are calling on the federal government to urgently consider repositioning the Federal Airports Authority of Nigeria (FAAN) towards surviving the post COVID-19 pandemic which has brought all activities at the 22 airports to a halt for close to two months.

Joining in making this call, the Chairman of NIGAV Centre and Airport Business Summit, Mr Fortune Idu, attributed reasons for his position to the critical position of FAAN as the pillar of the fragile and slowly developing Nigeria’s aviation sector which he said: “requires that careful consideration be made by government in taking decision concerning the organisation and as such, retrenchment of staff cannot be considered in this circumstance but serious effort should be made to reposition FAAN to save the sector.”.

Urging government to rescue FAAN from the COVID-19 ripple effect, Idu identified three areas the airports authority required to work on to remain financially strong  as; state intervention, FAAN recovery essentials and closing wastage gaps.

Idu’s call for quick intervention may not be unconnected to the recent alarm raised by the management of FAAN that if the lockdown occasioned by the pandemic continues, that it might find it difficult to meet its salary obligations for the month of May amidst fear of downsizing.

The expert’s position fell in line with the aviation sector regulators such as International Civil Aviation Organisation (ICAO), Airports Council International (ACI) and International Air Transport Association (IATA) that have all put forward, various recommendations and templates for a post-COVID 19 aviation business recovery road map, part of which are calling for serious government financial rescue intervention to support the industry recovery.

His words: “In Nigeria, the outbreak of the COVID-19 pandemic, has taken a serious toll on the fortunes of the Federal Airports Authority of Nigeria (FAAN) which is by and large, the strongest player within the nation’s aviation sector.

He described the fear raised by the FAAN management as scary with its consequent negative implications on the over 12,000 income earners on the payroll of the Authority comprising both active staff and the retirees and even the ripple effects also being felt by other Agencies and businesses that derive their revenue from FAAN’s good financial performance.

The dilemma of FAAN under the COVID-19 disaster he said now include: the burden of paying both salaries and running costs of the entire 22 airports which sadly rests on the revenue generation of just two of the airports.

Speaking on the need for state intervention for FAAN, Idu urged the Federal Government to as a matter of urgency design and implement a financial Intervention process to support airport infrastructure projects just as he appealed that FAAN should be allowed to reinvest its Internally Generated Revenue (IGR) directly into airport development.

He called for introduction of annual airport development Levy to be paid by states or private airports to FAAN as the airports development authority, adding that the levy should be used to set guidelines and monitor airport development operations nationwide as required by its statutory obligation.

“Establishment of financial support services for investments in the aviation industry which will include the setting up of a special low interest Aviation Development Bank to support the peculiarity of investments within the aviation corridors of both aeronautic and non-aeronautic.”

Another area he wants government to assist FAAN is in the recovery of outstanding debts currently owed it by airlines, agencies and States saying: “FAAN should design and begin the implementation of a private sector-like business model so as to make at least 10 out of its 22 airports self-sustaining or viable bearing in mind that in practical terms, not all airports can be viable as some will merely play social and economic support roles which are catalysts to development of other related businesses, but will not enhance their own bottom-line.”

Under what he called FAAN Recovery Essentials, the NIGAV Boss wants FAAN to pursue with vigour, the improvement of non-aeronautic revenue and bring it up to 50% in its total airport revenue.

Idu also wants FAAN to look into for revenue generation is in the area of leading a national drive for full scale aero logistics development with special investment focus on agro logistics as a way to improve cargo services and revenue, urging FAAN to aspire to earn 35% of its revenue from cargo services.

On how FAAN can close wastages gaps, while calling for closure of all areas of procurement wastage so as to recoup up to 20% of its revenue from streamlined operational procurements in fire and other department, Idu said:”Close all areas of wastage emanating from recurring maintenance costs that does deliver value for money as the constant breaking down of the air conditioning system, conveyor belts, lifts etc has become a major concern to flying public and the stakeholders and as such, affecting FAAN’s reputation.”

 

 

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