Economy News Extra Latest News Revenue Transportation

COVID-19: FAAN Records 75% Drop In Revenue

Federal Airports Authority of Nigeria (FAAN), has disclosed that it lost about 75 percent of its accruable revenue due to the COVID-19 in the current year.

The agency’s General Manager, Customer Service, Mrs. Ebele Okoye, who disclosed this at the Servicom Networking Meeting held in Calabar, Cross Rivers State, lamented the impact of COVID-19 pandemic on the aviation industry globally, particularly the Nigerian industry.

While noting that the ugly development stalled development in emerging markets with air travels dropping significantly and compelling airlines to cut their flight schedules, Okoye cited the Airports Council International (ACI), a global trade group for the world’s airports, report to substantiate her position.

According to her, the report indicated that there were well over 4,000 airports across the globe with scheduled traffic in (2016) and generated revenues totalling $172.2 billion.

She explained that in 2017, revenues of the airports increased by 6.2 percent, thereby enabling the airport industry to grow in recent years due to growth in passenger traffic.

In addition, Okoye noted that in 2019, the report reflected that total trips exceeded 9 billion and increased by 3.4 percent year by year.

Describing the SERVICOM as a valuable platform to frankly address issues that concern operators in the aviation industry, the General Manager explained that “it also fosters interaction in practical terms among the MDAs in the aviation industry and SERVICOM Presidency.

She said: “I believe this forum will also enables us to rub minds, exchange views on challenges affecting our work, and strengthen the spirit of teamwork in our midst. Obviously, no MDA can solve the problems of aviation. It takes the collective responsibility of all of us.

“The drop in passenger traffic almost completely paralysed both aeronautical and non-aeronautical revenues, such as landing charges for aircraft and also security charges. Consequently, a sharp fall in revenues, for FAAN which went as low as 25-30% drop of her pre-COVID-19 revenue, this amounts to N18.9 billion, following a 90 per cent decline in revenue in the first half (H1) of 2020”, she added.

In his remarks, FAAN Managing Director, Capt Rabiu Yadudu, explained that consequent upon the COVID-19 crisis in the global aviation space, airports lost take-off and landing fees as well as Passenger Service Charges (PSC) , being major revenue generating points of airports.

Yadudu pointed out, however, that with the assistance of government measures and industry guidance, recovery had started with the aviation sector with the reeling out of some guideline to ensure the health and safety of passengers, crew and other airport workers.

He said: “As this year has shown, things will not always be rosy, and it is only in unity of purpose can success be achieved. We will constantly be tested on our management and handling of critical situations within the aviation industry.

“It is no longer news that the year 2020 has been a trying one and has tested our mettle in every aspect of our lives. We have learned to rise to this challenge and overcoming it will make the victory much sweeter”, the FAAN boss added.

He charged the staff in SERVICOM department of the agency that networking event was a great milestone in the organisation’s quest for outstanding service.

“We should not forget the essence of networking which include interacting with others to exchange information and develop professionally and social contacts. Therefore, this event is a great opportunity for colleagues and friends to re-unite and seek ways to move our various organisation forward”, Yadudu stressed.

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *