FAAN To Earn N126bn Annually From Remodelled Airports

The Federal Airports Authority of Nigeria (FAAN) has projected that it would earn a total of over N126 billion annually from 22 airports across the country when they are completely remodelled. This amount represents a significant increase of 425 per cent over about N24 billion per year it was earning before the rehabilitation and expansion of these airports.

The Managing Director of FAAN, George Uriesi, made this known in an interview with THISDAY after President Goodluck Jonathan laid foundation stone for the construction of international terminal at the Akanu Ibiam International Airport and also unveiled the remodelled domestic terminal.

Uriesi said the income from every remodelled airport was estimated to increase by about 500 per cent because of revenues that would accrue from non-aeronautical sources such as shops and other business structures that have been expanded at each of the airports.

He added that more revenue would also come from more patronage by travellers with improvement of facilities at the airports.
"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," the FAAN chief executive pointed out.

Uriesi said when the remodelling programme is completed at the Murtala Muhammed International Airport, Lagos it would meet the high standards of any international airport in any part of the world and it is expected that the revenue accruing to FAAN from the airport would also quadruple as duty free shops and other commercial offerings would be developed.
"Lagos is going to be the eye opener. The revenue from that terminal is going to more than quadruple because the commercial offering after the remodelling is going to be more than five times what we have before. There was even nothing there before but now is when you are going to see Lagos make money."

As the Enugu airport is now designated to operate international flights, Uriesi said while waiting for the completion of the international terminal by December next year, the remodelled domestic terminal could also be used to facilitate passengers for international destinations because of the way the rehabilitated terminal was constructed.

"We now have an integrated domestic and international terminal, so we now have to cater for both departing and arriving passengers, but it is mainly a domestic terminal. The beauty is that it is designed in such a way that when the international terminal is finished, this will be used as domestic terminal. It is a flexible design but I think the most interesting aspect of it is the high street concept where everybody can come in and you can walk from one end of the terminal to the other and there will be a lot of shops in the next few weeks and months."

The FAAN boss said Enugu has the potential to rise to a very busy airport for international operations in the next 10 years, depending on the growth and by the said period it would be capacity sufficient with the international terminal coming on board.
"We hope to see the demand growing faster," he said.
The terminal has been contracted to a Chinese on Build, Operate and Transfer (BOT) basis and the company has already started work.

Uriesi explained: "It is a very straightforward agreement. It is a loan obtained on a very, very favourable terms. You will look very hard to get a better deal from them. In exchange for that, one of their best construction companies will construct the airport. We retain the consortium, the architecture and the project management, while the construction is with the Chinese firm. We are working together with them and we are looking forward to a very quick construction period of 15 months from start to finish."


Source: This Day