Bi-Courtney Aviation Service Limited (BASL), operates the Murtala Muhammed Airport Terminal 2, affirmed that passenger traffic dropped after Dana Air stopped its operations in April 2024.
The chief operating officer of BASL, Mr Remi Jibodu stated this when he played host to the leadership of the League of Airport and Aviation Correspondents (LAAC) in his office in Lagos.
“From April last year downwards, it was not as good as what we had from January; immediately Dana Air left,” he said.
Jibodu also attributed the passenger loss to financial pressures, rising lease costs and economic fluctuations.
“At some point, we also had very serious economic issues. I think around July, August, when the fuel went to about 4,000. It readjusted after one or two months. Then by October, it started picking up again and all of that. So we have had ups and downs.
“We believe that we are still going to do better this year. Looking at the foreign exchange, I think it has come down to 1,400. It is a little bit stable. This is because before, every week or every day, you are having debt going back and forth. So it’s a little bit stable.
“We believe that probably the government and the economic team will do something better this time around. They will rebase their economy. But majorly for us, it’s productivity, because that is what gives traffic. So if the productivity increases, then this year will be a very fantastic year,” he added.
The chief operating officer also commented on the signing of the Cape Town Convention (CTC) practice direction treaty, saying its implementation will enable Nigeria’s domestic airline operators to access aircraft on dry lease will boost capacity in the aviation industry.
Jibodu said the CTC implementation will encourage airlines to be able to get aircraft on dry leases.
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.
“When you look at most of the aircraft that we brought in, maybe in November, December last year, you would realised that, because it was summer period, a lot of them were cheaper to get, at least at that time. And it was at serious costs, even at that.
He stated that high aircraft leasing costs had forced airlines to return aircraft, thus reducing available seat capacity.
He said interest rates exceeding 30% and inflation around 24.7% have made financing difficult for airlines, limiting their operations.
“And in Nigeria, unless you have private funds, if you look at the financial institution, vis-a-vis what is happening in the industry now, you have interest rates of about 30 per cent plus. The inflation is about 24.7 or thereabouts. So it means that if you are borrowing money from the bank, it is going to be very difficult for you to break even, especially when they are putting the cost in terms of lease agreement on you”, he said.
Jibodu believed that with dry lease, airlines would be able to maintain existing crew, which also would in turn develop indigenous pilots, increase revenue and also be able to employ more people.
Jibodu however, advised that in talking about capacity, the routes should be taken into consideration as some routes are not very well serviced while others like Lagos, Abuja and Port Harcourt are well utilised.
To balance the disparity, Jibodu suggested that government should endeavour to create trade centres in various airport locations to speed up economic activities.
In his remarks, the chairman of the League, Mr Suleiman Idris, commended BASL, urging them to continue to sustain seamless facilitation of passengers at the terminal.
“Passengers’ comfort is uppermost in aviation business. So the terminal management in collaboration with airlines must always ensure prompt and seamless facilitation to ensure they (passengers) get to their destinations on time,” he noted.
