LAAC 28th annual conference: Stakeholders identify innovation, collaboration, key to sustain aviation sector

The 28th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) commenced with a powerful call for strategic innovation and collaboration to ensure the future of Nigeria’s aviation sector is protected.

Held in Lagos on Friday July 26, the conference themed: “Aviation Sustainability Amidst A Challenging Macro-Economic Environment”, drew industry leaders, stakeholders, and experts to discuss pressing issues and potential solutions.

Delivering the opening speech, LAAC Chairman, Mr. Idris Suleiman emphasized the need for adaptive strategies amidst the changing economic landscape.

Reflecting on the past year, he noted the significant downturn in the economy and its amplified constraints on the aviation sector, including high fuel costs, regulatory challenges, and deteriorating infrastructure.

Suleiman highlighted the capital-intensive nature of aviation and the critical dependence on foreign exchange for equipment and services.

He called for stakeholders to brainstorm and exchange ideas to navigate these challenges and urged the federal government to reconsider its decision on revenue remittance from aviation agencies.

Addressing critical challenges and opportunities

Chairman of the occasion, Dr. Thomas Ogungbangbe, CEO of CITA Petroleum Limited, set the tone by highlighting the severe challenges facing the Nigerian aviation sector, including high fuel costs, poor access to foreign exchange, a weakening currency, and the constant need for infrastructure improvements.

He emphasized the underutilization of Nigeria’s aviation infrastructure, with only three of over 30 airports being financially viable, and stressed the need for strategic investments in existing infrastructure rather than new projects.

“Passenger traffic is closely tied to economic activities,” Dr. Ogungbangbe noted. “A robust economy generates increased business and leisure travel, leading to higher passenger volumes. Our focus must be on stimulating economic growth to boost demand for air travel.”

He further suggested five key strategies to the government to improve aviation survivability in Nigeria, including stimulating economic growth, efficient resource allocation, encouraging public-private partnerships, developing integrated transportation plans, and promoting Nigeria as a travel destination.

Dr. Ogungbangbe’s concluding remarks reiterated the vital role of LAAC and the media in promoting transparency and accountability within the industry. “Your work ensures that our voices are heard and our challenges understood,” he said.

NAMA’s commitment to sustainable aviation

Delivering the keynote address, Engineer Farouk Ahmed Umar, Managing Director/CEO of the Nigerian Airspace Management Agency (NAMA), reinforced the need for operational efficiency and cost management. He praised LAAC for its role in shaping public perception and informing stakeholders, stressing the importance of collaboration.

“The aviation industry supports over $3.5 trillion or 4.1% of the world’s GDP,” said Umar. “In Nigeria, it supports 241,000 jobs and contributes $1.7 billion to the economy. However, economic volatility, high fuel prices, and currency instability have put significant pressure on our sector.”

Umar outlined NAMA’s strategies for survival and growth, which include embracing innovation and technology, strengthening infrastructure, fostering collaboration, and ensuring efficient pricing of services. He announced a review of NAMA’s fees and charges, reflecting the increased costs of operations and the need for sustainability.

“NAMA has proposed to increase its fees and charges by 800% to ensure we can continue to provide safe and efficient air navigation services,” Umar stated.

Also speaking at the event, Executive Commissioner of the Federal Competition & Consumer Protection Commission (FCCPC) Dr. Abdullahi Adams, represented by Mrs. Suzzy Onwuka, Chief Planning Research & Statistics Officer, addressed the critical role of the aviation sector in the Nigerian economy.

She expressed concerns over the increasing complaints related to unfair pricing, delays, cancellations without refunds, poor service delivery, and inadequate redress mechanisms.

“In recent times, we also raised concerns about anti-competitive practices in the aviation industry,” Onwuka stated. “Anti-competitive practices not only harm consumers but also stifle innovation and hinder industry growth.”

She however assured that the FCCPC is actively engaged in investigations, consumer education, and providing redress to complaints, aiming to build a competitive and consumer-centric aviation industry. “We believe that it’s only a highly competitive aviation industry that can deliver affordable and high-quality air travel services to the Nigerian people,” she added.

Addressing infrastructural impediments

President of Aircraft Owners and Pilots Association of Nigeria, Dr. Alexander Nwuba, in his speech on infrastructural impediments, highlighted the critical role of aviation in global connectivity and the multifaceted challenges it faces.

He pointed out the economic, regulatory, and security factors affecting the industry, as well as external influences and the “Nigerian factor.”

“We are in difficult economic times,” Nwuba remarked. “Hyperinflation, significant currency devaluation, and an industry that pays most of its bills in dollars while earning in Naira create substantial hurdles.”

Urging stakeholders to prioritize consumer safety and satisfaction regardless of the challenges, he further called on the government to review its policies, while paying more attention to the aviation sector.

The conference highlighted the necessity of a united approach to tackle the aviation sector’s challenges. With a focus on innovation, collaboration, and strategic investments, stakeholders are optimistic about driving the industry forward despite economic headwinds.

Other stakeholders in present at the event included: The Minister of Aviation & Aerospace Development, Mr Festus Keyamo; Ag. Director General of the Nigerian Civil Aviation Authority (NCAA), Capt. Chris Najomo; Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mrs Olubunmi Kuku; Chairman, Association of Ground Handlers of Nigeria (AGHAN), Mr Olaniyi Adigun; Former Rector of the Nigerian College of Aviation Technology (NCAT), Capt. Samuel Caulcrick, among others.