Jibodu noted that since April last year, passenger traffic has declined, particularly after Dana Air ceased operations. He attributed this drop to financial pressures, rising lease costs, and economic fluctuations.
Chief Operating Officer Bi-Courtney Aviation Services Limited (BASL), Mr. Remi Jibodu, has raised concerns over passenger decline at MMA2, citing economic instability and airline capacity challenges as key factors.
Jibodu noted that since April last year, passenger traffic has declined, particularly after Dana Air ceased operations. He attributed this drop to financial pressures, rising lease costs, and economic fluctuations.
Speaking during a visit by the League of Airport and Aviation Correspondents (LAAC) to BASL’s Lagos office, Jibodu stated, “We had serious economic issues, especially in July and August when fuel prices surged to about 4,000. Passengers decline at MMA2 became evident, and although there was some recovery in October, fluctuations persist.”
The COO emphasized that high aircraft leasing costs have forced airlines to return aircraft, reducing available seat capacity. He highlighted that interest rates exceeding 30% and inflation around 24.7% have made financing difficult for airlines, limiting their operations.
Jibodu also praised the implementation of the Cape Town Convention (CTC) practice, which he believes will provide airlines with easier access to dry lease agreements. He explained that the CTC framework streamlines aviation equipment financing, reduces costs, and offers airlines greater flexibility in crew selection. He noted that by leveraging CTC provisions, airlines can operate more efficiently and avoid the financial strain associated with traditional leasing models.
On capacity, Jibodu pointed out that while Lagos, Abuja, and Port Harcourt remain busy, other routes are underserved. He suggested that the government develop trade hubs around airports to boost economic activities and justify increased airline capacity.
Jibodu stressed the importance of productivity in increasing passenger traffic. “Traffic is driven by economic productivity. If the economy improves, we will see a stable and significant rise in passenger movement,” he said.
Despite challenges, Jibodu remains optimistic that 2024 will record better passenger figures than 2023. He noted that the recent stabilization of foreign exchange could improve airline operations. However, he urged the government to support airline growth and infrastructure development to enhance passenger traffic at Nigerian airports.
