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Automation to boost aviation sector’s earnings to N50bn

By BusinessNews Staff on March 21, 2015

The aviation industry can increase its revenue to N50 billion in the next two years if the automated cash points of the agencies in the sector are used efficiently and international local airlines pay their various charges and fees regularly. When this is attained, the sector’s contribution to the nation’s gross domestic product (GDP) would rise from the present 0.4 per cent to about three per cent.

This was disclosed by a top official of one of the agencies in charge of the automation system going on in the industry. The official noted that there are still loopholes through which revenues from the agencies fritter away to individual accounts, while opportunities to earn some resources from airlines, cargo importers and others are lost because the system presently cannot capture the potential revenue.

The source said the situation can be improved if the automation process is completed this year and put into operation in all the aviation agencies.

However, the committee set up by the Minister of Aviation, Osita Chidoka noted that there is an obstacle caused by the fact that the aviation agencies are currently paying a fee to service providers like SITA and the International Air Transport Association (IATA) to access some revenues, especially from international airlines.

The committee said, however, that major automation has already been achieved in the Nigerian Airspace Management Agency (NAMA) and the Federal Airports Authority of Nigeria (FAAN).

Although some operations are still carried out manually, implying that there is urgent need to integrate the aviation revenue automation project (ARAP) in all the agencies irrespective of the level of automation currently achieved.

“All revenue lines across all airports will be automated under ARAP. However, considering the fact that some work has already been done in automation by the different agencies there may be a need to include the ARAP for specific revenue line. Once the above issues have been resolved, there is now a need to drive commitment and enforcement by the agencies, including direct debt payment channel as well as a commitment by First Bank of Nigeria Limited(which is handling the automation) to ensure strict compliance to the implementation plan,” the committee said.

For the set objectives to be realised, the committee said the chief executives of all agencies should be held responsible for ensuring that all revenue lines in their agencies are captured under ARAP platform. It added that timeliness and deliverables should be strictly adhered to and that monitoring and enforcement should be initiated for all aspect of the project.

It also said the continuous upgrade and improvement should be an integral part of the project, stressing that all agencies should be encouraged to establish the project management office (PMO) as NAMA has done.

“Constant stakeholders’ engagement is a critical success factor for this project, hence the need for regular stakeholder interaction. A range of sanctions should be applied by NCAA to both international and domestic airlines that do not meet the automation guidelines within a stipulated timeframe,” the committee added.

[ThisDay]

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