Africa’s aviation industry has immense opportunities. In the next 20 years, population growth in Africa and Asia is expected to have an impact on the future of the airline industry. India, Nigeria, Pakistan, Democratic Republic of Congo, Ethiopia, Tanzania, Indonesia and Uganda are expected to contribute half of the expected increase in the population of travellers. Forecasts show that rapid urbanisation in African cities will drive demand for domestic and regional air travel.
These factors will add more jobs to those the aviation industry already generates across the continent. From direct jobs in airport operations to indirect jobs in retail outlets, transport, restaurants and hotels.
The reality, however, is that over the years, African airports have been run mainly as government entities without the drive for profitable management. This has resulted in many airports being classified as non-viable and unable to meet their operational costs. This has posed a major problem in the efficient running of airports that are unable to cater for their maintenance and operational needs thereby leading to stakeholder and customer service dissatisfaction.
All around the world airports rely on non-aeronautical revenues (NAR) such as retail concessions, car parking, property and real estate to maintain their facilities and provide high quality service. Global NAR accounts for 40% of airports income. In Africa, less than 20% of airports’ revenues generated is commercial. African airports must transform to unlock its potentials.
Hence, the theme: Business Transformation for Sustainable Development of African Airports, of the 59th ACI Africa Board and Regional Committees Meetings & Regional Conference and Exhibition is timely.
Airports Council International (ACI), a not–for–profit organization, represents commercial airports worldwide. As the voice of the world’s airports, ACI advances the collective interests of the communities it serves and promotes professional excellence in airport management and operations. In Africa, ACI is composed of 62 members from 47 countries managing 250 airports.
For six days Nigeria will host over 300 airport professionals from all over the world. I am confident that the wealth of experience of these professionals will provide ideas and action plans that will contribute to the ease of doing airport business in Nigeria and Africa.
African airports must position for increased passenger volume, particularly business travellers and tourists. Last year, the continent saw a 9% increase in tourism, the highest increase in any region.
Among other things, the conference will push for a change in the perception of business in African airports. A change in how the business of African airports is viewed is necessary to realise the vaunted benefits of the Single African Air Transport Market (SAATM). Last January, 23 African countries signed SAATM in Addis Ababa. SAATM has the potential to transform aviation business on the continent. Jobs for the continent’s burgeoning youth population, enhanced intra-Africa trade, convenient regional travel, contribution to GDP, and especially tourism are some of the expected benefits of the agreement.
According to IATA, an open skies agreement among Africa’s 12 biggest economies could see passenger traffic soar by 81% to about 11 million. It could generate 155,000 new jobs, adding $1.3 billion to GDP. It is estimated that it could provide 17,400 jobs in Nigeria and contribute $128m to our GDP.
Alongside the meetings and conference, airports, service providers and aviation companies will exhibit their products and services at a large-scale exhibition. Conference sessions will feature industry experts who will share their experience of technologies, innovations, strategies, mindset and business models (e.g. public-private partnerships) to improve operations and boost revenue. An entire session will dwell on the challenges and future of tax-free retail shopping, a major source of non-aeronautical revenue (NAR).
The advent of Public-private partnership (PPP) in Africa has caused a shift in the transformation of airports into sustainable business entities and Nigeria is not left behind. In recent years, Nigeria has engaged in the PPP practice and has witness good success. We are working tirelessly to ensure that our airports are viable and self-sustaining hence this is the perfect time for Nigeria to host this prestigious event.
One challenge African airports have tackled lately is safety. This has led to the initiation of the globally acknowledged Airport Excellence (APEX) in safety programme. This has recorded great achievements with a drastic decrease in the number of incidents and accidents in Africa.
In Nigeria, ACI has been of tremendous assistance in the certification process of the Lagos and Abuja airports through the APEX in safety programme which helped us identify safety gaps in our aerodromes. In recognition of the role played by ACI and in FAAN’s bid to ensure safety in our airports, we have commenced the APEX in safety programme in other of our international airports—Port Harcourt, Kano, Enugu and Kaduna.
In addition, Nigeria is currently seeking investments in the various industries especially in the aviation industry. This conference will afford investors first-hand information about the needs and opportunities in the Nigerian aviation sector.
Part of the aim of the conference is to allow our guests experience Nigeria, our beautiful culture, people, arts and crafts and all that we have to offer. A social day has been planned for the delegates which involves visits to unique tourist sites in Lagos state.
Hosting such a world class event will showcase Nigeria to the world. We at FAAN are delighted to host global and regional aviation experts and giants of the industry where knowledge and experiences will be shared, strategies developed, networks formed, and investments opportunities achieved.
Saleh Dunoma
