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Airlines to Earn N4 Trillion from Nigeria in 2013

04 Jan 2013

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 Arik  Airline

Chinedu Eze

With the coming of more airlines, both on the domestic and international routes, passenger movement increase to over 18 million and a boost to cargo services with the designation of new cargo airports, the aviation industry is projected to generate about N4 trillion in 2013.

If the Federal Government approves, British Airways may increase its frequency to Lagos this year and Emirates will add another aircraft to its operations, the same with Ethiopian Airlines. This is in addition to new foreign airlines that have applied to operate into the country.

Also, Arik Air, which has deepened its operation in Central Africa and expanded its services in West Africa, is expected to bring in more passengers from these regions to Lagos to connect to international destinations.

Available figures indicate that the total amount of revenue generated by foreign and domestic airlines, charter services and cargo operations in Nigeria is over N3.5 trillion or $25 billion annually.

This is expected to increase this year after the slur in market witnessed last year because of the tragic crash of Dana Air flight and the suspension of operations by Air Nigeria, Chanchangi and First Nation Airways, which hiked fares and literally chased many potential air travellers out of the airports.

The N4 trillion would come from passenger tickets, cargo freight charges, payment for charter services and revenues generated by government operators or service providers.

The government operators or service providers include Federal Airports Authority of Nigeria (FAAN),  Nigeria Civil Aviation Authority (NCAA) and  Nigeria Airspace Management Agency (NAMA) that earn about N300 billion or $2 billion annually in the previous years, from passenger service charge, landing and parking, navigational charges and others. These agencies’ revenues are expected to increase by 15 per cent.
By end of December last year, passenger movement on international routes rose to six million and that was the highest increase recorded in the nation’s air transport history, but this may increase to eight million this year.

In 2011, FAAN recorded over 12 million passenger movement and 234,235 aircraft movement and out of the over 12 million passengers, only four million were international passengers, which increased to six million by 2012.

Also, last year, passenger movement in the domestic routes was less than what was obtained in 2011 because of the slump immediately after the crash of Dana Air flight 0992, which killed 163 people, but it picked up from October, reaching its peak in December at almost the same figure with that of 2011.

Besides, foreign airlines operating into Nigeria repatriated over N164 billion to their various countries in 2010; earned over N250 billion in 2011 and it is projected that the figure may have doubled in 2012 because of increase in passenger movement, higher load factor and smooth operations from January to December.

FAAN said that with the installation of new carousel, the expansion and modernisation of airport facilities, there is ease in passenger facilitation.
Also, it is expected that more international airlines will start operation at the Mallam Aminu Kano International Airport, Kano, which will also boost the total revenue available to the industry.

Tags: 2013, Airlines, Business, Featured, N4 Trillion, Nigeria

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