MMA2 regional operation stalls after N600m investment
The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, SAN, last week signed a performance bond for newly appointed chief executives of aviation agencies with a strong warning of sacking any of them who failed to meet expectations.
Key to this performance bond, according to analysts and stakeholders in the aviation sector, is to have deliverables which apply not only to heads of agencies but the minister whose job is also tied to the bond he signed with President Bola Ahmed Tinubu in November 2023 to deliver on the Renewed Hope agenda in the aviation industry.
For the industry, the stake is high and stakeholders and observers desire an industry which is friendly to investors and guarantees returns on investment.
This is why a stakeholder tasked the ministers to take it as one of its deliverables to settle some legal matters in the industry to unlock a lot of potential.
“There are some legal matters in aviation. If you settle those legal matters, honestly a lot of things would be unlocked in the industry,” the stakeholder said.
The controversy over the Murtala Muhammed Airport Terminal Two (MMA2) concession to Bi-Courtney Aviation Services Limited (BASL) has dragged on for over 16 years, with no end in sight.
However, there was a ray of hope in 2023 when the management of FAAN led by the then Managing Director, Mr Kabir Muhammad, met with the BASL chairman, Dr Wale Babalakin.
Babalakin said the new development was a pleasant surprise and promised to explore the window to foreclose all preexisting gaps.
He said, “It has been a challenging 16 years of an undefined relationship with FAAN. I am positive that this meeting marks the beginning of a new era between BASL & FAAN.”
Babalakin said BASL remained committed to sustainable investment and promotion of good governance and global best practices in the aviation sector.
“The industry clearly needs to be re-engineered to bring the services and infrastructure standards to what is comparable elsewhere in the world, with a clear focus on automation, passenger facilitation and comfort all over the country. Together with this renewed partnership, I assure you of our unequivocal commitment to the objective of building a virile aviation sector,” Babalakin added.
The meeting was preceded by a courtesy visit by the senior management team of BASL, to the MD/CEO of FAAN and his team.
Muhammed, in the company of a select few of his team, reciprocated the call by making an unscheduled visit to Babalakin in his office.
But beyond the visit, the issue of the regional flights by Bi-Courtney have dragged on despite meeting the requirements for operating such flights which would have been a huge relief at a time operations were disrupted at the Murtala Muhammed International Airport (MMIA) over relocation of airlines to the new terminal.
Stakeholders and observers said the MMA2 has endured over the years as a model of airport concession in Nigeria having succeeded in bringing the terminal back to life from the ashes it was after the old General Aviation Terminal (GAT) was razed during the administration of former President Olusegun Obasanjo.
With the successful operation of the domestic terminal which remains the preferred choice of many domestic airlines today, many domestic airlines and foreign carriers doing regional operations would have preferred a situation where their operations were moved to MMA2 to decongest the international wing of the airport.
The MMA2 continues to decry the delay in starting the regional flight despite the N600m investment in the terminal.
Acting Chief Operating Officer of MMA2, Mrs Tosan Odukoya, told our correspondent that over 8,000 passengers now use the terminal on a daily basis, saying, “We’ve evolved from being a mere terminal into an integral part of the travel experience for over 8,000 departing and arriving customers each day.”
However, more concerning to the terminal operator was the delay in the take-off of the regional flights after the investment which, it said, started in 2014.
It would be recalled that the chairman of BASL, Dr Wale Babalakin, SAN, recently said he was alarmed that the terminal was not yet approved for regional flights despite putting in place the necessary facilities without any returns on investment.
Already, the terminal has dedicated two gates – five and six – for regional operations as well as the desks for immigration and other agencies of government expected at a port of entry.
The Head of Operations, Mr Ewah Blessing said, “The issue of regional operations is not a regulatory issue, and so we are dealing with that politically as well. Everything that was required to start regional operations, we have met and this was inspected by the NCAA.
“We are all positive that the infrastructures for regional operations are still in place and we believe that in little or no time we will start and at the end of the day, this will be for the benefit of the industry if you are to start regional operations out of our terminal.”
The COO of BASL, Mrs Odukoya, stated that the BASL had embarked on a new journey of collaboration and partnership, “working hard at forging a strong bond with the Federal Airports Authority of Nigeria (FAAN) under whose auspices we operate as a privileged public-private partnership.”
She added, “This connection is not merely political or economic; it’s a testament to the synergy that drives progress in our modern world.
“Safety and security are not just watchwords but foundational principles, ensuring the trust and confidence of the traveling public.”
Despite meeting the requirements, stakeholders say the new administration has a task ahead to resolve all issues that have stalled the commencement of regional operations at MMA2 and, by extension, the issues surrounding concession in order to boost investors’ confidence in Nigeria’s aviation sector.
It is believed that respect for contractual agreement is key in driving investment to the country and many believe the lingering case of Bi-Courtney does not portray Nigeria as a country that is ready for investment.
Aviation analyst and former commandant of the Murtala Muhammed Airport, Group Capt. John Ojikutu (rtd) said, “There is nothing delaying MMA2 to be cleared for regional operation because that was approved for the Passengers Terminal by Obasanjo and that was what the NCAA then certified it for at the audit conducted for the terminal before it was opened for operation.
“Remember that Virgin Nigeria and Arik were programmed to operate from the terminal and, remember too, how the two disregarded the directive and how it caused the death of Virgin Nigeria. If the growth of Nigeria aviation will be dependent on the political officeholders in the industry, we cannot grow just as we have not since 1993 that the idea of a new national carrier was mooted at the NASS public hearing under A. T. Ahmed, chairman of the Senate Committee on Aviation.”
‘Tinubu should end uproar between FAAN/Bi-Courtney’
According to him, the problem of Bi-Courtney and FAAN is one between two interest grounds similar to the one between those for and against the National Carrier. We should go back to the provisions of the Act on Concessions, Commercialisation and Privatisation of 2000.
It was that Act that brought about the MMA2 that was built from Ground Zero. How many of such airport passenger terminals have been so built? The Act has been abandoned and every political official in the successive administrations of our government wants the apple pie of the airports’ management and their earnings.
“The present administration should end the uproar between FAAN and Bi-Courtney and proceed with the suspension of the Concessions, Commercialisation and Privatisation of the Federal Airports which is taking too much from the FG’s expected revenue earnings. The administration should concession all the nonaeronautical services which include the passenger and cargo terminal buildings, lands for offices and hangars, car parks and tollgates, etc.”
Engr. Sheri Kyari, former president of the National Association of Aircraft Pilots and Employees (NAAPE), said, “I don’t know how easy it is going to be for FAAN to agree. It is not that the terminal cannot be used for regional operation but what I am saying is that once you convert that place for regional operation, can domestic operation still take place there again?”
Highlighting the need for the present government to resolve the pending issue of FAAN/Bi-Courtney concession, aviation management consultant Babatunde Adeniji said, “The place can be for regional use but they (Bi-Courtney) may need to come to some agreements with FAAN.”
Another airline operator who spoke with our correspondent in confidence said while MMA2 has demonstrated efficiency in the management of the domestic operation, starting regional flights might not be an issue but will have to address issues of apron size, and domestic/regional passengers’ separation, among others.