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Concession: Minister lists options for FAAN staff, says no job losses, unions to negotiate benefits….

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L-R Aviation Minister, Hadi Sirika and the MD FAAN, Capt. Rabiu Yadudu

The Minister of Aviation, Hadi Sirika says the concession of airports will mean better pay package for the Federal Airports Authority of Nigeria,FAAN, operational staff transferred to the concessionaires.

He also stated that the Nigerian Airport Concessions would be a Terminal Concession, both Passenger and Cargo, and majority of its revenue would be derived from Non-Aeronautical sources.

In his presentation to the House of Representatives on government’s strategy for airport terminal concession, the minister said only operational staff working at the 4 Airports Terminals to be concessioned would be transferred to the concessionaire(s).

The Objective, he said, was to ensure there were no Job losses. 
“Staff transferred will benefit from better pay package and conditions of service that Private sector companies offer. FAAN will negotiate benefits to be paid with the unions before completion of the handover”. 

Sirika explained that in the plan, only terminal concession would be done which would not lead to job losses, adding that FAAN has 8,100 workforce and only 1,158 work in terminal buildings (14.29%).

On the options being considered regarding the staff, the minister explained that staff shall have an option to return to FAAN after a period of 18 to 24 months while staff not required by a concessionaire shall be allowed to return to FAAN after the 18 to 24 month period.

“Benefits of transferred staff shall be paid by FAAN on completion of the 18 to 24 months if the staff decides to stay with a concessionaire”. 

Responsibilities of the Concessionaires, FAAN and benefits of the Concession as outlined by the Minister.

All other facilities at the airports will still be managed by FAAN. Our airports are national security assets. This must be kept so.The Concessionaire(s) will provide the investment required to upgrade the existing terminals, take over the new terminals and maintain them over a period of time to be determined based on financial assessment of each transaction.

Passenger Service Charge and Security Charge will be shared by FAAN and the Concessionaire(s) and FAAN’s share of the charges shall be paid directly to FAAN by IATA.

The concessionaire(s) will sign service level agreements with FAAN and NAMA to ensure that airport operates efficiently, the service level agreement will cover the Runway, Taxiway, Security and Air Traffic Management.

FAAN will be required to provide manpower through AVSEC for security of both the Airside and Landside.

The concessionaire(s) will provide and maintain landside equipment whilst FAAN continues to provide and maintain Airside security equipment. 

All existing concession contracts within the Terminal concession will be transferred to the concessionaire(s) as part of their management obligations and they will be allowed to run for the remaining duration of their respective contracts before any review.

Tariffs will be regulated in accordance with the procedures set in the concession agreement.