The Federal Airport Authority of Nigeria (FAAN) is seeking the review of its service rates and tariff to reflect current economic realities.
Managing Director/CEO of FAAN, Capt. Rabiu Yadudu, who stated this during the visit of members of the House of the Representatives Committee on Aviation to the Murtala Muhammed Airport, Lagos lamented the inability to get the requisite government and regulatory permits to review the charges.
“We have challenges with bureaucracies, bottlenecks and delays in the review of rates and tariff on services,” Yadudu said.
“The last time FAAN reviewed her charges was in 2011, over seven years ago and this obviously requires realignment with current realities,” he said.
Airlines pay landing and parking charges to FAAN for making use of the airports, just as the agency makes revenue from other non-aeronautical charges from offices and spaces rented to airlines, travel agents, car parks, restaurants, bookshops, among others.
Yadudu also enumerated some of the challenges confronting FAAN to include poor revenue generation from some of the airports, court cases and litigation against the firm, and reduction in airline patronage.
“National and international economic challenges affect airline operators which made them to reduce fleets, frequencies or totally withdrew operations,” he said.
Yadudu also decried the Federal Government policy of waiving 65 per cent of gross revenue accruing from annual pilgrimage operations.
“On an annual basis between $3million – $4million is being waived and this amount is not passed on to the passengers, but to the airlines,” he said.
Chairman of the Committee, Nnojim Nnaji expressed satisfaction at the plans and programmes of FAAN towards ensuring safe, secure and comfortable airport infrastructure in Nigeria. He promised that the committee will continue to collaborate and offer the needed support to the firm to achieve her goals.
“FAAN needs funding like every other agency in the aviation sector. Part of our plea to the federal government is to help FAAN in the area of aviation infrastructure,” he said.
FAAN is a service organisation statutorily charged to manage all commercial airports in Nigeria and provide service to both passenger and cargo airlines. FAAN is also responsible for creating conditions for the development of air transport and services connected with it.