| Travel & Tours |    2008 VIEWS  |
| Travel & Tours | |
| 2008 VIEWS | |
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| PROSHARE | |
| PROSHARE | |
Friday,
September 25, 2020 / 12:45 PM / By FDC Ltd / Header Image Credit: Guardian NG
Airports
have become fully integrated in the economic and social strata of various
countries. It plays an important part in air transport system and is very
significant to increasing the quality of life of regional and local
communities, directly participating in wealth creation.
Global & domestic aviation industry in distress
This
year, the global aviation sector could contract by approximately 55% and load
factor by 41%. This is the consequence of worldwide lockdowns and restrictions
on domestic and international air travel. The entire sector could lose over
$84bn in 2020 with revenues falling by over 50% compared to 2019. Profit levels
could also contract by 20.1%.
Of all
the transportation services in Nigeria, air transport took the biggest hit at
this time of the pandemic. It contracted 57.38% in Q2'2020 from 5.68% in
Q1'2020. Domestic and international flights have now resumed which points to a
slow recovery in the sector. However, passenger traffic could still be low as
individuals are pessimistic about contracting the virus and revenues will
remain thin compared to the pre-COVID levels. One thing is certain - things
will not remain the same.
Nigerian airports are still sub-optimal
Nigerian
airports are still not up to global standards. In addition, when compared to
peer countries like South Africa and Ghana, it is evident that the country
still has a long way to go in terms of airport infrastructure. There are still
a number of persisting challenges for Nigerian airports ranging from poor
management and administration, to maintenance, structural and regulatory
bottlenecks to mention a few. A recent survey revealed that the conduct of some
officers (immigration and customs) and careless handling of luggage are top
pain points of travelling through Nigerian airports. In addition, travelers
have complained over time that the Nigerian airport experience does not measure
up to acceptable global standards.
The way forward
The Singapore model
In the
past 40 years, the Changi airport has developed and expanded to become the best
airport in the world. Through consistency and strict compliance to development
plans, the airport has expanded from one to five terminals. In addition, there
has been adequate provision of other vital support facilities like aircraft
engineering support, in-flight catering services, fire stations and utilities.
Furthermore, other sensitive divisions like security and transport and customer
services have remained top priority at the airport. The aesthetics of the
airport (travel and leisure theme), presence of cinemas, restaurants and
shopping complexes has not only increased passenger traffic but also revenue.
In 2019, passenger traffic was over 68 million people. Travelers often commend
the airport experience and ease of navigating the airport.
Airport
concessioning has also contributed immensely to the efficient organization of
the airport. The effective management practices by the Public Works Department
of the Changi Airport Development Division supported the fast growth and
development of the airport. Changi Airport was corporatized and came under a
new company, Changi Airport Group, when the Civil Aviation Authority of Singapore
(CAAS), which had managed the airport for 25 years, was restructured into two
separate entities – Changi Airport Group, which oversaw airport operations, and
the restructured CAAS, which was involved in regulatory issues.
Lessons for Nigeria
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