• Thursday, July 25, 2024
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FAAN revenue to shoot up through airport remodeling


Revenue from every remodelled airport is estimated to increase by 500 per cent due the income that would accrue from the non-aeronautical sources attached to the expansion work.

Some of the already remodeled terminals have seen ultra modern shops and other business structures expanded at each of the airports and with improvement of facilities, more people are being attracted to doing business at the airports, apart from travelling.

The 22 airports under the remodelling programme would invariably boost the nation’s Gross Domestic Product (GDP) when completed.

Stella Oduah, Aviation Minister said the airports are being remodeled in a bid to galvanise economic activities and enhance international and domestic travel.

It is projected that by 2015 total domestic and international passenger movement in Nigeria would rise from the present 12 million to 16 million and with better airport facilities and commercial offerings at these airports, air travellers would be increasing by at least 10 per cent every year.

George Uriesi , Managing Director of the Federal Airports Authority of Nigeria (FAAN) said while commissioning the Enugu airport that thaere is no doubt that FAAN was on the path of being repositioned on the long run after the completion of the terminals.

“You take Enugu for example, if Enugu was making a N100 a month and FAAN was spending a N1000 on it, the net loss was N900. With the remodelling, this N100 Enugu was making is going to become N800.

“ It may become profitable as an airport simply because of the commercial offerings it has or at least it may pay off its bills and save FAAN from subsidising it. So as we replicate all these, the income from every airport is going to go up in my estimation by at least 500 per cent,” he said.

Oduah in her opening speech while foundation stone for the construction of international terminal at the Akanu Ibiam International Airport was being laid by President Goodluck Jonathan noted that , ‘Nigeria’s aviation industry must take its rightful place in our national life. The industry must become pivotal to the socio-economic development of our country as it is supposed to be and as we proclaim in our Vision, we will continue to do what it takes to deliver just such an industry to Nigerians.”

Oduah said the international terminal project in Enugu would be completed in December 2014 and together with perishable terminal, the total cost of the project is N13.3 billion.

She described Enugu as the fastest growing airport in the country and said the new international terminal with a total floor area of 25,000 square meters would have capacity to handle 500,000 passengers per annum.

“On completion of the terminal, this airport will finally answer its name in the real sense of the word “Akanu Ibiam International Airport”, Oduah said.

She disclosed that already two international airlines have indicated interest to operate flights into the Enugu airport, adding that discussion along these lines would continue over the next few months “as we prepare the airport’s infrastructure to meet this demand.”

The Minister assured that the remodelling of the 22 federally-owned airports would be completed, including the five new international terminals coming on stream in Lagos, Abuja, Port Harcourt, Enugu and Kano, noting that these were not the only transformation taking place in the aviation sector, but also the aerotropolis projects and the perishable cargo terminal projects.