…Idu Calls for Comprehensive Planning to Ensure Airport Viability
The Chairman, Airport Business Summit, ABSE, Mr. Fortune Idu says, airport managers across the country must adapt to new strategies to maximize revenue potential.
Idu who stated while speaking at the NIGAV Centre while unveiling the upcoming Summit’s activities, Idu revealed that Mrs. Olubunmi Kuku, Managing Director of the Federal Airports Authority of Nigeria (FAAN), recently approved the inclusion of a workshop on airport route development and marketing for airport managers at the forthcoming event.
Mrs. Kuku is slated to address Airport Viability at the Airport Business Summit in July.
Idu noted that to support these initiatives for airport repositioning, micro-managers must be trained to understand airport viability from a development perspective.
According to him, “Airport managers must be positioned as chief marketing officers and business development managers for their facilities. Although airport concessions and public-private partnership schemes remain key government strategies to enhance the economic viability of Nigeria’s airports, it is crucial to prepare managers to understand the roles of all stakeholders, including the federal and state governments, airport authorities, investors, and users. This aspect will be a focal point of the airport managers’ workshop at the Summit.”
He criticized the outdated approach of building airports and expecting airlines to establish routes independently.
Instead, he called for comprehensive planning and robust business cases to ensure airports can connect people and cargo effectively, enhancing their economic viability.
“This is the goal Mrs. Kuku is striving to achieve, and it’s imperative for all airport managers to support this objective,” Idu said.
Mrs. Kuku has underscored airport viability as a key factor in refocusing FAAN’s operations across its 23 airports. Since her tenure began, she has prioritized internal process reviews and management restructuring to boost airport revenue and minimize waste.
“Managing 23 airports in a densely populated country like Nigeria is a significant challenge. Ensuring all airports are profitable and contribute to government revenue is no small task. Currently, only four airports are financially viable,” Idu noted.
However, he stressed the importance of air travel connectivity for Nigeria’s growth, highlighting the equal value of all domestic airports in this context.
Many airports in Nigeria were developed at state government requests without initial business viability or strategic master plans, simply to meet interstate connectivity needs.
ABSE Chair explained, “In this context, airports become critical infrastructure for connectivity and economic development, similar to roads. However, unlike other transport infrastructure, the operational costs of running airports, regardless of passenger usage, are exceptionally high”.
The current administration is focused on generating income from all airports, recognizing them as businesses.
“Reviewing the capacity and potential of airports is a key pillar of Mrs. Kuku’s strategic plan. This also aligns with the Honourable Minister’s insistence that all airports should develop master plans identifying long-term ambitions and strategies, with periodic reviews to accommodate future growth projections,” Idu concluded.
