COVID-19: FAAN MD laments loss of N18.9 billion revenue
The Federal Airports Authority of Nigeria (FAAN) says it has lost over N18.9 billion as a result of the rampaging COVID-19 pandemic.
A breakdown of the figure shows the agency lost N17.5 billion of aeronautic charges in 23 weeks and also incurred N1.4 billion loss of non-aeronautic charges between April and June, 2020.
FAAN Managing Director, Capt. Hamisu Yadudu who spoke at a virtual stakeholders meeting said the agency’s Internally Generated Revenue (IGR) also dropped substantially in the last six months.
He explained that inspite of the challenges posed by the virus, its managers opened airports that were involved in evacuation flight arrangements.
He also noted that the agency has ensured that local airports under its management commenced domestic operations after meeting the requirements set by Presidential Task Force (PTF) on COVID-19.
He said some of the activities the agency got involved in during the lockdown made to incur cost on maintenance and utilities despite the total decline in traffic as well as revenue.
“In spite of the drastic drop in revenue, FAAN has managed to ensure that all its local airports have commenced domestic operations having met the requirements by Presidential Task Force (PTF) on COVID-19, NCAA and other regulatory bodies and have been issued clearance to reopen.”
“Plans are also at advanced stage to ensure that the International Airports are set for re-opening on the 29th of August, 2020 as announced by the Minister of Aviation as we will be seeing during the course of this meeting. All these have come at a huge cost to the Authority with little or no cash inflow,” he said
On the protocols put in place for the commencement of international operations as guideline to ensure that more than 1,280 international passengers are allowed on a daily basis, Yadudu said that it would translate to reduced revenue for the agency, as fewer passengers would be coming in.
“The above automatically translates to fewer passengers and limited income even with the resumption of international operations. All these are issues of great concern to the authority and partly what has necessitated the need for all our stakeholders to rub minds on strategies to adopt to ensure that the industry remains in operation to provide the very much needed service,” Yadudu said.