FAAN seeks strategic partnerships, incentives to boost airport revenue

The Federal Airport Authority of Nigeria (FAAN) has called for strategic partnerships and incentives to boost airport revenue generation.The FAAN stated this at the Airport Business Summit and Expo (ABSE) 2024 Africa, themed ‘Addressing Airport Viability as a Key to Successful Aviation Business Ambition’ held at MMI Airport, Lagos.

General Manager of Business Development of the FAAN, Hycienth Ngwu, who represented the Director of Commercial and Business Development, Adebola Joy, said the best way to tackle airports’ difficulty in generating revenue is a strategic partnership.

Ngwu said that there is a need to partner with stakeholders in the aviation industry, emphasising private partnerships, he stated that airlines are private businesses, which “go where profit is maximised”.

He added that incentives are a way of encouraging airlines to do business with airports, saying: “As they are doing it over there, incentives from the Airports Authority by giving a waiver of discounts in landing and taking off charges will go a long way.”

The GM said before FAAN takes over an airport from the state governments, the state governments would need to give the FAAN their business plan.
“It is not just rushing into building an airport and you transfer a whole liability to FAAN to manage,” Ngwu noted.

Director of Special Duties of FAAN, Henry Agbebire, mentioned that the Authority found out that the country’s aeronautical revenue is where it is because our revenue drive is not driven by technology and automation”.

According to Agbebire, a lot will be done to automate revenue-driven processes.“Before you know it, in all our airports, all access gates will be automated and research was done that we could shore it to 55 per cent from where we are now,” he said.

Aligning with the aviation economic revamp plan of the present administration by improving revenue generation, Founder and Convener of Airport Business Summit, Fortune Idu, addressed the need for the airport to be economically viable and sustainable in operations.

While calling on the industry’s associate partners and stakeholders, researchers, enterprises, institutions, and investors to collectively make an effort to enhance aviation’s performance to connect people and places, he stated that the summit 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.