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As Abuja Airport Reopens in 3 Weeks, Helicopter Operators Race to Recover Losses
While the one-week suspension of helicopter shuttle services from Abuja to Kaduna and Minna lasted, operators incurred huge losses, which they are now hopeful to recover as operations resumed penultimate Monday, writes Chinedu Eze
As helicopter companies count their losses after one-week suspension of shuttle services to Abuja airport, which was closed on March 8 for the rehabilitation of its runway, shuttle operations started penultimate Monday at the instance of the National Security Adviser (NSA), who lifted the ban.
One of the major helicopter operators, Bristow had made plans for the shuttle services over a month ago, by providing facilities at the Minna Airport in Niger State, deploying personnel and equipment.
Another that set its location at designated alternative airport, which is Kaduna International Airport, had started airlifting corporate passengers to Abuja VIP tarmac.
THISDAY gathered that, helicopter companies lost several millions of naira, but officials of the companies kept mum on the cost. Official of one of the companies however said it was partnering another firm and the official decision was not to make any information public.
The image maker of the Federal Airports Authority of Nigeria (FAAN), Mrs. Henrietta Yakubu, told THISDAY that there had been helicopter shuttle from the Kaduna airport, as high networth passengers could not afford road movement to Abuja, which takes about three hours, while train movement takes about two and half hours.
It could be recalled that 24 hours after the Kaduna Airport commenced operation as alternative to Abuja airport, there was a circular issued by the NSA that helicopter shuttle to the airport of the Federal Capital Territory had been banned.
Before the Abuja airport was closed, Bristow had made elaborate plan to use Minna airport instead of Kaduna to operate special fixed wing services and airlift its passengers by helicopter from Minna to Abuja. Although high net worth individuals were targeted for the shuttle and it notified its customers, who are mainly oil and gas personnel, the company expended funds on the development of Minna airport for its operations.
Spokesman of Bristow, Mayowa Babatunde, told THISDAY that since the company started the helicopter shuttle from Minna airport to Abuja VIP tarmac, there had been a good turnout of passengers.
The choice of operating its special flight to Minna and airlift passengers with its chopper, Bristow said, was to save time and also provide seamless travel for its clients.
The company operates Embraer 135 special fixed wing flights from Lagos to Abuja and planned to start Minna- Abuja flight from March 8, 2017, but this was disrupted by the NSA ban on chopper services to Abuja airport.
THISDAY enquired from Bristow the cost of airlifting passengers from Minna to Abuja airport tarmac, but the company said it could not publish the fares because it would be against the Nigerian Civil Aviation Authority (NCAA) regulation, noting that it was not a scheduled airline operator. However, THISDAY learnt that passengers were charged about N150, 000 per drop.
A helicopter operator told THISDAY that the companies may not be making much profit from the shuttle operation because one hour operation in a Sikorsky helicopter of that type is $7,000.
“How much are you going to charge each passenger to justify that operation and ensure you don’t record losses?,” the operator asked.
Some industry observers said government should have made provision for the helicopter shuttle instead of banning it for a number of days as they did because such service was very necessary.
They also noted that the security issue was important because in the past “you airlift oil and gas workers, but in this case different people will patronise you and you don’t have their profile.”
However, Genesis Global Aviation, which recently obtained Air Operator Certificate (AON) from the Nigerian Civil Aviation Authority (NCAA), said it would extend its service to the shuttle operation in the remaining weeks before Abuja airport is reopened.
The Chairman of the airline, Captain Emmanuel Ihenacho, said his company on demand could deploy his helicopters to Kaduna and operate the service, noting that there was always market for everyone.
“It is indeed true that a lot of players in the industry are falling out but that has not changed the situation that would require helicopter services. It can be in respect of offshore service delivery or for emergency medical evacuation or for general logistics of moving people and personnel from one point to the other. So, if the economy is bad and the helicopter service providers are falling, it does not mean that other people cannot be entering the market and going in the opposite direction. We are not quitting because we believe in the resilience of the Nigerian economy,” he said.
But despite the chopper service, many Nigerians had decided they would not travel to Abuja through Kaduna and would wait until the Abuja airport is re-opened.
Former Minister of Aviation, Babatunde Omotoba, had projected that Nigeria would lose about N400 billion due to the closure of Abuja airport.
“This movement is costing us so much. Foreign airline have cancelled their flights to Abuja during the period. Many businesses have also shut down. Like me now, I have come down to Lagos and I want to stay here for two weeks, at least. When I am going I will go by road. A lot of people have put off their trips this period and that will have an impact on the economy.
He projected that the economy would lose over $1 billion (about N400 billion) with the shutdown of the airport.
“An economist will look at what Abuja contributes to the GDP in a year and look at what one and half months will contribute, because many economic activities will be paralysed during this time. Nigerian airlines are going to count their losses. The number of travellers will reduce. This will have negative impact on our economy. Many, who are in Abuja will be there for those six weeks, so the number of travellers will reduce. This will cost the economy hundreds of billions because a section of the economy will be shut down during this period,” he said.
The hope of helicopter operators to make huge profits from the closure of Abuja airport may have dimmed, but they could still generate revenue from their services in the remaining weeks.