Chinelo Obogo
 
 
 
 
The Federal Airports Authority of Nigeria (FAAN) has proposed to undergo a name change as part of efforts to ensure that Nigeria has just one industry regulator.
 
The agency seeks to change its name from FAAN to the Federal Airports Administration of Nigeria and is also seeking to amend or enact Bills that would aid the agency in security as well as legal representations going forward.
 
The Managing director of FAAN, Captain Rabiu Yadudu made these known in his opening remarks at the ongoing three-day public hearing on the amendment of six (6) executive Bills of aviation agencies hosted by the Senate Committee on Aviation.
 
Yadudu said since 1999, there has been no significant amendment to the FAAN Act and the repealing and enacting of Acts is the perfect opportunity to make changes to ensure the vibrant airport manager and remove the misconception that FAAN is a regulator.
 
“Proposing a bill that the Federal Airport Authority of Nigeria ( FAAN) in line with International Civil Aviation Organisation ( ICAO) regulations which states that there is only one regulator in the industry, we propose a change of name to the Federal Airports Administration of Nigeria ( FAAN).
 
“We are also seeking to retain the laws to allow the FAAN Aviation security carry arms as well as another Bill seeking legal officers of FAAN to represent the agency during a time of litigation and reduce such,” Yadudu said. 
 
At the hearing, the Managing Director of Overland Airways, Captain Edward Boyo, claimed that not less than 100 domestic airlines have folded in the past 20 years due to high charges and unfavourable operating environment.
 
Boyo said that not less than 35 charges like Ticket Sales Charge (TSA), Cargo Sales Charge (CSC), Value Added Tax (VAT), N2, 000 Airport Tax, landing fee, parking fee, navigation fee, terminal charges, security taxes, fuel surcharges, handling charges, corporate income tax, and fuel tax amongst others are crippling business and warned that if some of the charges were not abolished or amended, more airlines in the industry would close shop soon.
 
He said: “Airlines in Nigeria are victims of the environment created by laws. Some of the laws were promulgated possibly when we were comfortable doing so. We must look at a way of bringing down costs to the airlines. Our airlines are suffering today.
 
”Why are airlines dying in Nigeria? Over 100 airlines have come and gone in Nigeria in the past 20 years. Are the airlines to pay for the inefficiencies of these agencies? Very soon, there may not be any airline again in Nigeria.
 
”Sir Richard Branson of Virgin Nigeria came into Nigeria aviation industry a few years ago. He was successful everywhere, but failed in Nigeria,” Boyo said. 
 
Responding to Boyo, Sirika, said that most airlines in the country close shop due to lack of corporate governance, inadequate funding and poor business models of the airlines.
He said that a particular airline in the country lost about $20 million to acquisition of two aircraft.
 
He explained that most of the sponsors of the airlines lack knowledge about the industry, yet refuse to learn the rudiments of the sector.
 
Sirika also hinted that the charges collected by the airlines were recognised by the International Civil Aviation Organisation (ICAO), and charged the operators to use right equipment for their routes.
 
He said: ”Our airlines should operate the right equipment for their routes. Most of them lack adequate planning for their operations. I know of a particular airline operator who lost about $20m on two aircraft. That’s the truth. The person lost $20 million right in my own eyes. Also for an operator to access loans at 25 per cent interest, it is killing.”
 
Captain Musa Nuhu, the Director General of Nigerian Civil Aviation Authority (NCAA), in his comment said that levies collected by the agencies were arrived at in agreement with the stakeholders and airline operators.
 
He pointed out that in order to check non-remittal of charges by airlines, NCAA established a portal for reconciliation of of charges, but noted that most of the airlines refused to come onboard the portal.
 
He then threatened that NCAA may sanction erring carriers very soon.