Airport Operators Groan over High Cost of Service Delivery by Government Agencies

Chinedu Eze

Operators of state and privately owned airports have cried out over the exorbitant cost of compulsory services provided by the Federal Airports Authority of Nigeria (FAAN), the Nigeria Airspace Management Agency (NAMA) and the Nigeria Meteorological Agency (NIMET).

According to the regulatory policy of the federal government on air travel, the agencies must provide these services to state owned and privately owned airports to ensure they align with given standards.

The services include air traffic control, aviation security, fire cover service and weather prediction.

The grouse of the state airport operators is that the agencies charge too much for these services and if they withdraw their services the airports would be forced to close.

The airport operators are lamenting that the cost of paying for these services are higher than the revenue they generate. So they charge airlines for using their airports, which the airlines transfer to passengers, but at the same time the airlines still pay the agencies through five per cent ticket sales charge, which the Nigeria Civil Aviation Authority (NCAA) collects and shares with NAMA, NIMET, Nigeria Safety Investigation Bureau (NSIB) and the Nigeria College of Aviation Technology, Zaria.

FAAN also collects Passenger Service Charge (PSC) from the passengers through the airlines.

The Managing Director of Chinua Achebe International Airport, Umueri, Anambra state, Martins Nwafor, told THISDAY that immediately an airport starts operation the aviation agencies start billing it with no waivers, making it compulsory for the airport to set aside funds to pay for these services if it must continue to operate.

“We pay NAMA, NIMET, FAAN and they still share from the five per cent ticket sales charge which NCAA collects on their behalf. In Anambra, whatever is generated from passengers they share from it and they still charge for their services. FAAN has passenger service charge, which it collects from passengers. It operates over 22 airports. It is not supposed to be providing service at other airports that are owned and managed by others. Being at other airports and providing services makes them a regulator, which they are not. They are service providers like other airports in the country.

“FAAN provides Aviation Security (AVSEC) and fire service. If the Federal Government has it as policy that FAAN must provide security service at the airports, so be it, but what of fire service. They are not supposed to provide such service because every state has its own fire service. We have witnessed occasions where FAAN fire service workers have taken the management of fire equipment, which they are not familiar with and they used it wrongly and spoilt it. They give you very little service and ask you to complement and still charge you,” he said.

State owned airports in Anambra, Delta, Akwa Ibom, Bayelsa and some in the northern part of the country are maintained at huge cost. For example, in Anambra State, the airport uses eight generators.

Also, speaking in the same vein, the Managing Director of Asaba International Airport, Delta State, Mr. Christopher Penninck, said the state airports pay for air navigation services, meteorological services, fire services, Aviation Security (AVSEC) and other costs, including maintenance, so because of the charges the airport managements have to also charge the airlines that operate into the airports and the airlines also collect the money from the travellers through airfares.

Pinninck said the state airport operators pay these aviation agencies that provide the aforementioned services, yet the airlines still pay the five per cent ticket sales charge. In other words, the air traveller is double charged by the aviation agencies which collects money from the airports and from the airlines, hence the high cost of tickets.

He said, “We (the airport) pay for air navigation services, meteorological services, Fire Services, AVSEC and the other costs. On what basis would we then still not charge for an aircraft to operate into the airport? We have been arguing that the NCAA gets five per cent of the airfare to pay the other agencies. Yet, the airport operators pay again and the airlines pay yet again. This is paying three times for the same service, which is against ICAO Doc 9082. But nothing changes and it seems it is going to worsen (charges going up).”

Earlier this year the Chief Operating Officer (COO) of United Nigeria Airlines, Mr. Osita Okonkwo had frowned at the high charges levelled on them by state airports.

He lamented that Asaba airport increased its Passenger Service Charge to N8000, Anambra also increased theirs, MM2 was at N7, 000; yet, NCAA is still collecting five per cent charge.

“So, if they are talking about reducing air fares, they should also reduce theirs because it is all additional cost to the passenger. How do we pay for the aircraft and spare parts? The truth of the matter is that the minimum cost of airfare should be $100 and I don’t see how you can fly for less than N150,000. Once the cash runs out, you will start seeing people parking their aircraft. In fact, some have done so,” he said.

Some years ago, FAAN withdrew AVSEC and fire cover services from Gombe and Kebbi airports due to N800 million unpaid debt. As at then the state owned airports were owing FAAN about N4 billion.

The state airports are however requesting that FAAN should allow them provide the fire cover and other services themselves because they have the wherewithal to do so.