Page 75 - World Airnews Magazine December 2019 Edition

NEWS DIGITAL NEWS DIGITAL

TOWARDS EFFICIENT AIRPORT

SYSTEMS

Port Harcourt International Airport (image courtesy: https://ha.wikipedia.org/wiki/

Plans by the Nigerian government to concession some interna- management. But our view is that the executive officer, Belujane Konsult, Chris concession airports may not materialise
ownership is best left in public hands.”
Aligbe, said the concession of airports
until the government invested sufficient
IATA carried out research that showed
tional airport terminals has triggered a debate on what model of how privatised airports often end up remained the way forward, but govern- funds in airport infrastructure to make
running airports can achieve efficiency. costing passengers more. The argument ment must ensure the process of delivering them attractive.
the airports into private hands should be
He said Nigeria should stop trying to copy
Some experts say adopting a template that is in place across the is that unlike the airline industry - where transparent and free of intrigue. other models of airport concession/privati-
variety and competition between players
Other industry players disagreed. They
sation done in other countries without first
globe is a viable option, writes Kelvin Osa-Okunbor drives down prices for consumes - airports said the proposal could trigger a round of getting local input.
can become monopolies, imposing high
Magashi said airports that had been
prices on airlines and passengers. job losses as the government is yet to state privatised or concessioned in Europe,
categorically how labour issues would be
associated with greater specialisation; Airports are therefore under increasing ACI said it is neutral in the privatisation resolved. United States and Asia, had done so
access to new sources of investment and pressure to expand infrastructure and debate. However, in June 2018, it stated A financial expert and chief executive because passenger traffic had prompted
Efficient airports are drivers and stimulation of aviation-driven economies. services to meet demands. But the rise in that “privatisation has been shown to be officer, Katari Consult Limited, Ali Magashi, such an initiative.
catalysts of socio-economic development. However, private ownership and operating costs and national budget cuts a successful means by which to fund infra- said the infancy state of airport facilities Chief Executive Officer, Ropeways
structure development, while government
But, as a critical air transport operation of airports comes with a high have made this increasingly unattainable spending cannot be relied upon as it has would not attract any investors. Transport Limited, Dupo Olumide said
for the public sector. Cash-strapped
infrastructure, how such facilities are run degree of market power and monopolistic governments privatise airports to increase been in the past. He said efforts to either privatise or airports would be attractive to investors if
to attract passengers, cargo and other tendencies, which result in the benefits not investment without impacting their “Forty of the highest revenue earning
being passed on to airlines and consumers.
activities has become a subject of global To drive efficiencies in airports, the national coffers. airport groups are fully or partially
debate. International Air Transport Association Nevertheless, privatisation in some privatized.”
According to studies by the Central (IATA) has said governments must take countries is receiving increased pushback In Nigeria, stakeholders are not on the
Intelligence Agency (CIA) in the United urgent steps to ensure airports are not from airline organisations and industry same page as the rationale for concession
States, a few years ago, there are over moved from public monopoly to private commentators. or privatisation of the terminals is slated by
43,982 airports and air fields across the monopoly. At this year’s IATA general meeting, CEO the government.
globe, under public/private ownership and Since the 1980s, the trend towards and director-general, Alexandre de Juniac The federal government last year listed
management. airport privatisation has been steadily on urged governments to take a cautious the Murtala Muhammed International
In Africa, there are over 400 airports, ma- the rise, as governments and airports look approach. Airport, Lagos; Nnamdi Azikiwe
jority of which are grossly under-utilised. to private money to fund expansion. He said that there has not yet been an International Airport, Abuja; Aminu
Experts say the ownership and manage- According to a recent report by the example of privatisation that has delivered Kano International Airport, Kano and
ment of airports are more critical than Airport Council International World (ACI), the promised benefits of greater efficiency Port Harcourt International Airport, Port
activities that take place in such facilities. 14 percent of airports have some level for airlines, as well as a better experience Harcourt as terminals up for private sector
In the last few decades, there has been of privatisation, from corporation-led for customers. take over.
a shift from direct government ownership, management to varying types of public-pri- “Our members are very frustrated Even though transaction advisers were
financing and management of airports to vate partnership agreements. with the state of privatised airports,” he appointed, the lack of industry acceptance Nnamdi Azikiwe International Airport, Abuja .Photo image
greater private sector involvement. A range of trends are making privatisa- said. “By all means, invite private sector of the proposal has continued to block the courtesy: https://www.skyscrapercity.com/
Private sector management of airports tion more attractive, with the most potent expertise to bring commercial discipline project.
has many advantages, such as efficiency being a rise in passenger traffic. and a customer service focus to airport In a recent interview in Lagos, chief

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