3 months ago
5
.Says aviation survival depends on strategic investment, not new airports
BY CHUKWUEMEKE IWELUNMO
Managing Director, CITA Aviation Fuelling Company Ltd, Dr. Thomas Ogungbangbe, has listed ways Nigeria can improve survivability of the aviation sector, urging governments at all levels to first concentrate on maintaining and improving existing airports rather than invest in new ones that would not yield immediate returns.
Ogungbangbe, who was chairman of the occasion at the 28th conference of League of Airports and Aviation Correspondents held in Lagos on Friday, spoke on the theme: Aviation Survivability Amidst Challenging Macro-Economic Environment.
While lamenting that Nigeria with a population of approximately 250 million, has over 30 airports, yet, only three of these airports are financially viable, said: “This stark reality underscores a severe underutilisation of our aviation infrastructure and highlights the need for a strategic shift in how we approach aviation sustainability. Passenger traffic in our sector is closely tied to economic activities.
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“A robust economy generates increased business and leisure travel, leading to higher passenger volumes. Therefore, our focus must be on stimulating economic growth and activities that will, in turn, boost demand for air travel. This requires a concerted effort from all stakeholders, including the government, private sector, and international partners.
“Investing in new airport projects while neglecting essential infrastructure like roads is counterproductive. Improved road networks facilitate easier access to airports, making air travel a more attractive option for our populace. We must prioritize the maintenance and improvement of existing airports and essential infrastructure rather than embarking on new airport projects that may not yield immediate returns.
“Insights from other regions, such as Singapore and Hong Kong, demonstrate the benefits of focusing on economic activities and strategic investments. For instance, Singapore, with a population of 6.03 million, registered 16.5 million passenger movements through Changi Airport in just the first three months of 2024”, he said.
He urged the government to focus on policies and investments that stimulate economic growth, including improving road infrastructure, supporting small and medium-sized enterprises (SMEs), and enhancing sectors like tourism and trade that drive air travel demand.
While calling for efficient allocation of resources, Ogungbangbe said: “Government should prioritise the maintenance and improvement of existing airports and essential infrastructure while ensuring that funds are allocated efficiently to enhance the overall travel ecosystem”.
He also wants the government to invite public-private partnerships to invest in and manage airport infrastructure.
“This can bring in expertise, efficiency, and additional funding to improve airport operations and passenger experience. There is need to also create integrated transportation plans that connect airports with other modes of transport, such as rail and road networks, facilitating easier access to airports and enhancing overall travel, convenience and actively market and promote Nigeria as a travel destination, including incentives for airlines to increase routes to and from Nigeria and campaigns to attract international tourists and business travelers”, he added.
Meanwhile, the CITA boss decried the skyrocketing price of aviation fuel and poor access to foreign exchange which takes toll on all other components, calling on the government to intervene.
“One of the critical challenges in our sector is the high cost of aviation fuel. This affects ticket prices, operational costs, and passenger traffic. The volatility in fuel prices, coupled with poor access to foreign exchange and a weakening currency, exacerbates the financial strain on airlines. Maintenance costs and the need for technological upgrades further add to the burden, making it difficult for airlines to operate profitably”, Ogungbangbe said.
English (US) ·