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Airlines Realize N3.5 Trilllion Annually

By on December 7, 2012

Nigerian Airline Regulators may have something to smile about alongside as the recent analysis on the revenues realized from the volume of flights domestic and international show that over 3.5 trillion Naira was generated as revenue annually.

The former Commandant of the Murtala Mohammed International Airport (MMA) Group Capt John Ojikutu (rtd) who revealed this,said government  should have this raw statistics before exploring how to assist domestic airline operators  in purchasing new aircraft for their operations.

On the issue of Assisting Domestic Airlines in the acquisition of new aircrafts Minister of Aviation Mrs Stella Oduah said “There is a paradigm shift there. The money will not go to the operators; the money will go to the aircraft manufacturers who will in turn bring these aircraft for us here and we have criteria again that the potential airline operators must have to scale through. It has to do with the professionalising their operations”.

She further stated that “It has to do with good governance, it has to do with several things, including ownership structure, because we want efficient and functional airlines, as that is the only way we can have safe aircraft flying in our airspace. This is what we promised Nigerians and that is what Nigerians will get”.

The revenue according to the report accrues from passenger tickets, cargo freight charges and payment for charter services, while government operators or service providers, including the Federal Airports Authority of Nigeria (FAAN), the Nigeria Civil Aviation Authority (NCAA) and the Nigeria Airspace Management Agency (NAMA)

It was  confirmed that the Agencies earn about N300 billion or $2 billion annually from passenger service charge, landing and parking, navigational charges and others an increasing commercial value which can be improved upon.

With these analysis there is need for more effective reforms in the Aviation Industry which should reposition the sector to more viable in its quest to also become a vital revenue earner for the nation.