Chief Operating Officer (COO) of Bi-Courtney Aviation Services Limited (BASL), operators of Murtala Muhammed Domestic Airport Two (MMA2), Mr Remi Jibodu has applauded the federation government implementation of the Cape Town Convention (CTC) Practice instituted last year, stressing that such step taken, will help boost capacity in the industry.
According to Mr Jibodu the CTC practices will encourage airlines to be able to get dry leases, which means streamlining aviation equipment financing, cost reduction and flexibility in the choice of utilising local crew as against foreign crew.
The COO gave the commendationbon Tuesday when the executive members of the Leaque of Airport and Aviation Correspondents (LAAC) made a courtesy visit to the company’s office at MMA2 in Lagos.
Speaking during the session, he said “when you look at most of the aircraft that we brought in, maybe in November, December last year, you would realise that, because it was summer period, a lot of them were cheaper to get, at least at that time. And it was at serious costs, even at that. I have airlines that have to return their aircraft because they can’t cope with the lease agreements”.
“And in Nigeria, unless you have private funds, if you look at the financial institution, vis-a-vis what is happening in the industry now, you have interest rates of about 30 percent plus. The inflation is about 24.7 or thereabouts. So it means that if you are borrowing money from the bank, it is going to be very difficult for you to breakeven, especially when they are putting the cost in terms of lease agreement on you”, he said.
Mr jibodu believes that with dry lease, airlines would be able to maintain existing crew, which also would develop our own pilots in Nigeria, increase revenue and also be able to employ more people.
Jibodu however, advised that in talking about capacity, the routes should be taken into consideration as some routes are not very well serviced while others like Lagos, Abuja and Portharcourt are well utilised.
To balance the disparity, Jibodu suggested that government should endeavour to create trade centres in various airport locations to speed up economic activities.
He said “So if you bring in capacity today, what the airlines are looking at is, if I put this capacity, am I going to fill it? But, you know, the first thing that must happen is to establish trade centers, and the airport is just the one to ensure that, we connect those trade centers since economic activities are already there.
Emphasising that airline operation is not about one way and that both ways have to be calculated, the COO further added that “one of those things we encourage the government is to ensure that we develop the economic activities. We have new airports coming up, you know, states and all of that. But the truth about it is that do they have economic viability for you to be able to sustain that airport? So we are looking at that, to ensure that when government increases the activity, the connectivity will be very easy.
Aside from the fact that facilities are there to have a smooth transition from the car park to customers’ final boarding gate, Jibodu emphasised that the company has a lot of things in between in relation to the vast space available at MMA2.
Explaining how BASL is harnessing it’s large space available at the terminal, the COO said that, in the last two years, the company has seen fantastic things springing up.
With over 100 tenants, he pointed out that the number is increasing as another bank is coming on board.
“Even in terms of rentals, I think a bank is coming up again. So we are going to be having more outlets. So we are not just an airport or an airline.
Noting that the terminal welcomes about 10,000 up to 15,000 people, including the footfalls, that come in and out of the facility on a daily basis, he encouraged the government to ensure that they expand what they are already doing.
On cargo, the COO said the company is desirous of contributing to that cargo chain and that was why they started the coal storage last year, which is trying to fill that chain of the cargo chain.
Admitting that Nigeria has a lot of things going by road which is risky, Jibodu informed that BASL is already developing and growing the coal chain in the system.
“So now, if we have a dedicated freighter system, which we are encouraging. We we are talking to some people about this. We want more people to come into the business, so that we can be able to move these goods and redistribute all over Nigeria”, he added.
After 18 years of managing MMA2, Jibodu said that, with what the company has achieved over the years, they should have that first right of refusal of any airport in Nigeria.
The COO affirmed that having done it for almost two decades, BASL has the capacity to be able to extend same management prowess to any airport in Nigeria, and even the West Coast.
On passenger traffic at the terminal, he said “from April last year downwards, it was not as good as what we have from January. Immediately, Dana Air left, you understand.
” At some point, we also had very serious economic issues. I think around July, August, when the fuel went to about 4,000. It readjusted after one or two months. Then by October, it started picking up again and all of that. So we have this ups and downs.
” Averagely, it’s better than what we had in 2023. We believe that we are still going to do better this year. Looking at the foreign exchange, I think it has come down to 1,400.
” It is a little bit stable. This is because before, every week or every day, you are having debt going back and forth. So it’s a little bit stable.
” We believe that probably the government and the economic team will do something better this time around. They will rebase their economy. But majorly for us, it’s productivity. Because that’s what gives traffic. So if the productivity increases, then this year will be a very fantastic year”, he said.
In his remarks, Chairman of LAAC, Mr Idris Suleiman commended BASL, urging them to continue to sustain seamless facilitations, just as they have been doing.
Mr Suleiman said “passengers’ comfort is uppermost in aviation business so the terminal management in collaboration with airlines must always ensure prompt, seamless facilitations to ensure they get to their destinations on time.”
According to the LAAC Chairman, the terminal pride itself as the leading privately manager terminal on the African continent and it should continue to improve on their facilities and processes.
” On behalf of LAAC, we pleage to support the management and urge a symbiotic relationship between the organisation and the league”, he added.
