Photo caption : From left: Engr. Eyitayo Yusuf; Ag. Chief Operation Officer, Bicourtney Aviation Services Limited, Mr. Remi Jiboodu; Chairman AGHAN, Mr. Olaniyi Adigun; Group Managing Director, Finchhgloow, Mr. Bankole Bernard, and Former Managing Director, Federal Airport Authority of Nigeria, (FAAN), Capt. Rabiu Yadudu, during the LAAC 28th Edition of Annual Conference on the Aviation Survivability Amidst a Challenging Macro-Economic Environment in Lagos.
The Chief Executive Officer /Founder of CITA Aviation fueling Company, Dr. Thomas Ogungbangbe has stated that one of the ways of ensuring and improving aviation survivability is by stimulating economic growth of the aviation industry
He said this at the 28th edition of the League of Airport and Aviation Correspondents (LAAC)annual conference held in Lagos.
Ogungbangbe, who was the Chairman at the event, advised the Federal 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.
Besides, the Chairman also advocated for the allocation of resources efficiently by prioritising the maintenance and improvement of existing airports and essential infrastructure and also ensure that funds are allocated efficiently to enhance the overall travel ecosystem.
Other factors that should be considered is to encourage Public-Private Partnerships (PPP) to invest in and manage airport infrastructure.
This, he said, can bring in expertise, efficiency, and additional funding to improve airport operations and passenger experience.
He also called for the development of 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.
Speaking further, Ogungbangbe posited that for the continued survivability of the Nigerian aviation industry, the country’s travel destinations must be marketed and promoted.
He pointed out that actively marketing and promoting Nigeria as a travel destination, includes providing incentives for airlines to increase routes to and from Nigeria and campaigns to attract international tourists and business travelers.
He said that one of the critical challenges in the aviation sector is the high cost of aviation fuel, adding that 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, he said exacerbates the financial strain on airlines.
Ogungbangbe lamented that maintenance costs and the need for technological upgrades further add to the burden, thereby making it difficult for airlines to operate profitably.
He, however, stated that these challenges also present us with a unique opportunity to innovate, collaborate, and drive the industry forward.
He said that Nigeria, a nation with a population of approximately 250 million, has over 30 airports, but that regrettably only three of these airports are financially viable.
This stark reality, the Chairman said underscores a severe underutilisation of Nigeria’s aviation infrastructure and highlights the need for a strategic shift in how we approach aviation sustainability and that passenger traffic in the sector is closely tied to economic activities.
“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 prioritise 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,” he said.
To buttress his point, the CITA boss cited 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 and Hong Kong, with a population of 7.5 million, recorded a 12-month rolling passenger volume of 44 million.
These figures, he said, highlight the significant potential for passenger traffic when economic conditions are favorable and strategic investments are made.
Speaking on the conference, the Chairman stated that the theme, ‘Aviation Sustainability Amidst Challenging Macro-Economic Environment’ is not only timely but also vital.
According to him, “Our industry stands at a crossroads, facing significant challenges but also tremendous opportunities for growth and transformation. The Nigerian aviation sector, like many others around the world, has been severely impacted by the macro-economic environment.”
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