Nigerian Airports - Lessons from Singapore

Friday,September 25, 2020 / 12:45 PM / By FDC Ltd / Header Image Credit: Guardian NG

Airportshave become fully integrated in the economic and social strata of variouscountries. It plays an important part in air transport system and is verysignificant to increasing the quality of life of regional and localcommunities, directly participating in wealth creation.

Global & domestic aviation industry in distress

Thisyear, the global aviation sector could contract by approximately 55% and loadfactor by 41%. This is the consequence of worldwide lockdowns and restrictionson domestic and international air travel. The entire sector could lose over$84bn in 2020 with revenues falling by over 50% compared to 2019. Profit levelscould also contract by 20.1%.

Of allthe transportation services in Nigeria, air transport took the biggest hit atthis time of the pandemic. It contracted 57.38% in Q2'2020 from 5.68% inQ1'2020. Domestic and international flights have now resumed which points to aslow recovery in the sector. However, passenger traffic could still be low asindividuals are pessimistic about contracting the virus and revenues willremain thin compared to the pre-COVID levels. One thing is certain - thingswill not remain the same.

Nigerian airports are still sub-optimal

Nigerianairports are still not up to global standards. In addition, when compared topeer countries like South Africa and Ghana, it is evident that the countrystill has a long way to go in terms of airport infrastructure. There are stilla number of persisting challenges for Nigerian airports ranging from poormanagement and administration, to maintenance, structural and regulatorybottlenecks to mention a few. A recent survey revealed that the conduct of someofficers (immigration and customs) and careless handling of luggage are toppain points of travelling through Nigerian airports. In addition, travelershave complained over time that the Nigerian airport experience does not measureup to acceptable global standards.

The way forward

The Singapore model

In thepast 40 years, the Changi airport has developed and expanded to become the bestairport in the world. Through consistency and strict compliance to developmentplans, the airport has expanded from one to five terminals. In addition, therehas been adequate provision of other vital support facilities like aircraftengineering support, in-flight catering services, fire stations and utilities.Furthermore, other sensitive divisions like security and transport and customerservices have remained top priority at the airport. The aesthetics of theairport (travel and leisure theme), presence of cinemas, restaurants andshopping complexes has not only increased passenger traffic but also revenue.In 2019, passenger traffic was over 68 million people. Travelers often commendthe airport experience and ease of navigating the airport.

Airportconcessioning has also contributed immensely to the efficient organization ofthe airport. The effective management practices by the Public Works Departmentof the Changi Airport Development Division supported the fast growth anddevelopment of the airport. Changi Airport was corporatized and came under anew company, Changi Airport Group, when the Civil Aviation Authority of Singapore(CAAS), which had managed the airport for 25 years, was restructured into twoseparate entities â€“ Changi Airport Group, which oversaw airport operations, andthe restructured CAAS, which was involved in regulatory issues.

Lessons for Nigeria

There is need for increased investment towardsairport infrastructure as it will help reduce average costs and increaserevenue. For example an expansion of airport parking spaces could increaseincome generated from parking tickets.
Public-private partnership will attract moreinvestment. It will also help in terms of management, income generation andaccountability. The presence of private ownership will intensify the need toboost revenue and profit.
Airport aesthetics could also be a tourist attractionand this could increase passenger traffic and in turn revenue.
Effective implementation of development plans cannotbe over-emphasized.