FEDERAL Airports Authority of Nigeria (FAAN) has said that to improve its revenues it has embarked on massive debt recovery drive, suspended procurement of non- essential items as well as placed emphasis on its cashless policy among other things.
This is just as he canvassed that the aviation agencies would also need bailout from the federal government to bridge infrastructural gaps in the industry.
Managing Director, FAAN Capt. Rabiu Yadudu made this known during the week when the House Committee on Aviation visited the agency’s facilities at the Lagos Airport as part of its oversight function.
Yadudu noted that the airport managers had taken these critical steps in the light of dwindling economies assuring that the agency would continue in that stead.
Some of the steps taken according to Yadudu also included the reduction in all staff related cost to the barest minimum and aggressive debt recovery drive, which he said was hampered by the Covid-19 pandemic.
Others according to him are plugging of revenue loopholes, cash and fly policy, promotion and enforcement of cashless policy and the continuous strengthening of Business and Operational Excellence by improving on people, processes, platforms and performances.
He added: “In keeping with our vision and mission, we have strategically positioned ourselves to ensure that we have modern and up-to-date high-tech equipment and facilities that will aid better security, safety and comfort of all stakeholders.
“I will like to say that aviation business is a global, technical and highly regulated with huge infrastructure requirements; furthermore, it is necessary to reiterate that aviation business sis driven by volumes and turnaround with operating profit margin of between 2.5 per cent to 5 per cent. Without the required volumes and traffic, it will be difficult to breakeven.
“The aviation agencies will urgently need intervention fund from the Federal Government to address infrastructural gaps and position the industry for better service delivery and contribution to the national economy.”