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FAAN Bemoans Loss Of Over 90% IGR To COVID-19 Pandemic

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… Lost N17.5B Of Aeronautic Charges In 23 Weeks To Pandemic

… Customers Default On Payment, Beg For Payment Suspension, Deferral and Waivers

The management of the Federal Airports Authority of Nigeria (FAAN) has disclosed that the agency Internally Generated Revenue (IGR) reduced by over 90 per cent in the last six months due to the COVID-19 pandemic which broke out in March this year.

The Managing Director, Capt. Hamisu Yadudu also disclosed that the agency lost N17.5billion of aeronautic charges in 23 weeks and N1.4 billoon loss of non-aeronautic charges from April to June, 2020.

Speaking at a virtual meeting of stakeholders Tuesday night Capt. Yadudu said that not withstanding the challenges posed by COVID-19 on FAAN’s revenue, the agency has ensured that all its local airports have commenced domestic operations by meeting the requirements set by Presidential Task Force (PTF) on COVID-19.

He also stated that it was based on that fulfilment of the conditions that the Nigerian Civil Aviation Authority (NCAA) and other regulatory agencies and issued clearance to airports to reopen.

Yadudu said that during the lock down, the airport managers opened airports open and that were involved in evacuation flight arrangements at airports .

This according to him further makes the agency incur cost on maintenance and utilities despite the total decline in traffic as well as revenue.

According to him, “In spite of the drastic drop in revenue, FAAN has managed to ensure that all its local airports have commenced domestic operations having met the requirements by Presidential Task Force (PTF) on COVID-19, NCAA and other regulatory bodies and have been issued clearance to reopen.”

He continued, “Plans are also at advanced stage to ensure that the International Airports are set for re-opening on the 29th of August, 2020 as announced by the Hon. Minister of Aviation as we will be seeing during the course of this meeting. All these have come at a huge cost to the Authority with little or no cash inflow.”

On the plans to commence international flights, Yadudu said, “Plans are also at advanced stage to ensure that the international airports are prepared for re-opening on August 29, 2020 as announced by the Hon. Minister of Aviation, Senator Hadi Sirika as we will be seeing during the course of this meeting. All these have come at a huge cost to the Authority with little or no cash inflow.

Speaking on the protocols put in place for the commencement of international operations as guideline to ensure that more than 1,280 international passengers are allowed on a daily basis, Yadudu said that it would translate to reduced revenue for the agency, as fewer passengers would be coming in.

“ The above automatically translates to fewer passengers and limited income even with the resumption of international operations. All these are issues of great concern to the authority and partly what has necessitated the need for all our stakeholders to rub minds on strategies to adopt to ensure that the industry remains in operation to provide the very much needed service,” Yadudu said.

On his part, the Director of Finance and Accounts (DFA), Mrs. Nike Aboderin in her presentation titled, “Ongoing COVID-19 and Implications on FAAN” revealed that the agency lost over N17.5 billion of aeronautic charges in 23 weeks and also N1.4 billion loss of non-aeronautic charges from April to June, 2020.

She explained that the lost is huge compared to the same period in 2019.

Aboderin lamented that compared to 2019, only 8.7 per cent of the agency’s non aeronautical revenue charges were collected from April to June 2020.

She pointed out that as a result of the pandemic FAAN customers were not only defaulting on payment for services rendered to them but that there is an increasing request for payment suspension, deferral and waivers

Aboderin further stated that 87 per cent of 2020 budgeted overhead cost was wiped out in six months with up to 95 per cent decline in weekly revenues.

Participants at the stakeholders meeting includes the Aviation Minister, Senator Hadi Sirika, the Director General of NCAA, Capt. Musa Nuhu, the Managing Director of Nigerian Airspace Management Agency(NAMA), Capt. Fola Akinkuotu, Chief Executive Officer of Belujane Consult, Mr Chris Aligbe and other critical stakeholders.

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Hard Time Awaits Airport Rule Breakers, with Establishment of Magistrate Courts

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The Managing Director, Federal Airports Authority of Nigeria (FAAN) Mrs Olubunmni kuku has announced plans to establish magistrate courts in airport premises across the country to swiftly address violations of airport rules and anti-touting regulations.

The move is aimed at ensuring a safer and more comfortable environment for genuine airport users.

The MD FAAN, made the announcement during a meeting with heads of security agencies at the Nnamdi Azikiwe International Airport (NAIA) in Abuja.

The meeting was convened to brief airport stakeholders on recent developments, outline the authority’s strategic goals, and discuss ways to enhance passenger experience and facilitation.

Mrs. Kuku identified the presence of touts and loitering by members of the public as a major challenge to providing a comfortable experience for genuine airport users.

“There are people who have absolutely no business being at the airport, and they continue to create issues for us,” she said.

“We have an anti-touting taskforce, and as it is, we are going to start the prosecution onsite of those engaging in these illicit activities or loitering around the airport environment and harassing passengers. This doesn’t happen elsewhere around the world, and the airport should be a safe space.”

The MD/CE also addressed the issue of car hire operators violating processes and protocol, warning that such behavior would no longer be tolerated.

She emphasized the need to reduce manual baggage search at the international wing of the airport, proposing a process where baggage would be screened by machines, and security officials would view the contents in real-time, only pulling aside luggage that requires secondary screening.

Mrs Kuku said, “We have to streamline our efforts. We need to improve processes at the airport. This is the 21st century, and we must keep up with the times”.

She also announced that the Terminal C of the NAIA would be ready for use by December 2024, with plans to develop more international routes to take advantage of the underutilized International Terminal.

NAIA Military Airport Commander, Air Force Group Captain Abbas Hashim, thanked the MD/CE for convening the meeting and called for more regular meetings and better cooperation between the agencies and FAAN.

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Nick Fadugba: The Passing of an Aviation Colossus

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By James Aduku

The African aviation community is in mourning, following the death of the Founder/Chief Executive Officer of African Aviation Services, Nick Fadugba on Saturday week.

The death of the aviation impresario who has been variously described as gentle, humble, highly professional and public-spirited, was announced by African Aviation Services.

“It is with great sadness we announce that Nick Fadugba, Founder and Chief Executive Officer of African Aviation, recently died. The entire African Aviation family mourns his loss. On behalf of the whole Team, we extend our deepest sympathies to Nick’s family”.

Nick Fadugba established African Aviation Services (AAS) in 1990 with the pan-African vision of promoting aviation development throughout Africa. He believed that aviation could be a vital catalyst for Africa’s economic and social transformation. Since 1988, he provided a wide range of consultancy and advisory services to international aviation, finance and leasing organisations and to African Governments. He was also instrumental in fostering business relations between Africa and the international aviation community in critical areas such as Aviation Finance, Aircraft Leasing, Aircraft Maintenance, Air Safety and Aviation Training.

Nick had unique experience in aviation finance and aircraft leasing negotiation, arbitration and dispute resolution in Africa. Other areas of speciality included developing airline business plans; fleet planning; aircraft leasing and finance advisory services; airline route network development; market information research and analysis; reconciliation of aircraft leasing / finance accounts and debt recovery; negotiating acquisition of airport slots and air traffic rights; and establishing London Heathrow Airport operations for foreign airlines.

He was appointed an Interim Non-Executive Director to the Board of South African Airways on 9th December, 2020, and acted as Chairperson of SAA Technical until April, 2023. He was elected Chairman of the African Business Aviation Association (AfBAA) in May, 2018, handing over the Chairmanship last year. He was a former elected Secretary General of the African Airlines Association (AFRAA); a Launch Member of the African Business Aviation Association (AfBAA) and Vice Chairman of its Safety and Training Committee; was Chief Advisor to the Association of African Aviation Training Organisations (AATO); a Fellow of the Royal Aeronautical Society (RAes), UK; a member of the Aviation Club of the UK; a member of the German Aviation Research Society (GARS); the European Aviation Club; the Institute of Directors (IOD), UK; the International Society of Transport Aircraft Trading (ISTAT), USA; a Volunteer for Airlink, the international aviation charity, and a member of the ISTAT Scholarship Program for African Students. In 2021, he was elected as a member of the Board of Trustees of the International Society of Transport Aircraft Trading Foundation (ISTAT Foundation) which was founded in 1994 to support individuals and institutions that promote the advancement of commercial aviation and humanitarianism. He worked on the ISTAT Foundation’s Grants Committee which manages fundraising and programming that meets the Foundation’s objectives. Nick helped pioneer international aviation conferences focusing on aviation finance, leasing, aircraft maintenance and aviation training, specifically tailored for Africa, providing a unique forum for African and international airlines, airports, aviation, finance and leasing organisations, industry regulators and Government officials to discuss key commercial, financial and regulatory issues affecting the African aviation industry and to seek practical solutions through mutually-beneficial co-operation. In 1990, he also helped pioneer aviation publishing in Africa with the launch of AFRICAN AVIATION, Africa’s Aviation Industry Journal, to promote the African aviation industry globally. For over 30 years Nick organised the Air Finance Africa Conference, the MRO Africa Conference, as well as other aviation events.

 

Background:

 

• Co-Chaired first ‘Air Finance’ Conference in Tokyo, Japan, in 1988 for Aircraft Lessors & Financiers.

• Co-Chaired European Air Transport Conference in London, in 1988, with UK Minister of Transport.

• Appointed by the Federal High Court of Nigeria as a Member of the Committee of Inspection in the Liquidation of Nigeria Airways (2004).

• Appointed Communication Adviser to the Secretary General, African Airlines Association (AFRAA) in 2002 with a mandate to further contribute to revamp and polish the image of the Association internationally.

• Invited as a Speaker or Moderator at numerous International Aviation Conferences organised by major bodies, including ICAO, IATA, ACI, AFRAA, AFCAC, US FAA, US NTSB, National Civil Aviation Authorities, GE Aviation and Embraer.

• Africa representative, Governing Board, International Business Aviation Council (IBAC), Montreal, Canada, an ICAO affiliate.

 

Nick has an MSc (Distinction), in Air Transport Planning & Management from the University of Westminster, London, UK and was the MSc Dissertation Prize Winner. He also held a Post-Graduate Diploma, Air Transport Management from Cranfield University, UK and a BSc (Honours) in Mass Communication from the University of Lagos, Nigeria. He attended Airport Economics and Finance Courses at the University of Westminster, London, UK as well as Regional and Low Cost Air Transport Courses, University of Westminster, London, UK. He also attended Boeing Leadership Seminars, Boeing Learning Center, USA.

 

Awards:

• In 2000, he was presented with a Plaque by the USA National Transportation Safety Board (NTSB) for ‘Outstanding Contribution and Service to Aviation Safety.’

 

• In December, 2003, he was presented with an Award by the African Airlines Association (AFRAA) for “Outstanding Contribution to the African Aviation Industry” presented by then Head of State of Libya, Col. Muammar Gadaffi.

• In 2018, he was presented with an Award by the Aviation Round Table (ART), Nigeria, for “Invaluable Support and Contribution to the Upliftment of Aviation Safety in Africa, particularly in Nigeria.”

• In 2023, Nick was presented with a Certificate of Recognition for his “Extraordinary service and dedication to AATO” from the Association of African Aviation Training Organisations (AATO).

 

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Nigeria’s ICAO Rep, Ben-Tukur Elected Chairperson of AFI Plan

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By Elizabeth Okwe

Nigeria’s permanent representative at the International Civil Aviation Organisation (ICAO), Engineer Mahmoud Sani Ben-Tukur, has been elected as Chairperson of the ICAO AFI Plan today at the 27th steering committee meeting during the 9th AFI Aviation Week in Libreville. This follows his recent elevation to 1st Vice President during the 230th ICAO Council meeting, marking a significant progression in his career.

The ICAO comprehensive Regional Implementation Plan for Aviation Safety in Africa (AFI Plan) enhances aviation safety across the African continent. It aims to coordinate and implement regional initiatives and standards set by ICAO. The AFI Plan focuses on improving safety oversight, regulatory frameworks, infrastructure development, and capacity building within African aviation authorities and organizations. It serves as a collaborative effort among African states to harmonize and elevate aviation safety standards to international levels, ensuring safer skies and facilitating sustainable growth in the aviation sector across Africa.

Ben Tukur’s election add this responsibility to him. A Fellow of the Nigerian Society of Engineers and a member of RAeS and IET in the UK, Engineer Tukur brings 28 years of extensive aviation experience to his new role, gained through roles such as aircraft maintenance engineer, instructor, and aviation safety inspector in both government and private sectors.

Having served as General Manager (Airworthiness Standards) at the Nigeria Civil Aviation Authority  Technical Adviser to a former Minister of Aviation, and in coordination roles at organizations like NCAA and Aerocontractors Airlines, Tukur’s regulatory expertise is robust and well-regarded.

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