Concession: Protect important national assets with ironclad regulations, IATA tells Nigeria, others
- Urges nations to learn from past mistakes, backs ‘Open Africa sky’
Wole Shadare, Geneva
The International Air Transport Association (IATA) has cautioned Nigeria and other countries planning to concession or private their airports to exercise restraints, stressing that they must try as much as possible to protect what it described as important national assets with ‘ironclad regulation’ that prioritises the nation interest.
The Director-General of IATA, Alexandre de Juniac stated this today in his remark at the IATA Global Media Day in Geneva, Switzerland.
He warned that Air Traffic Management (ATM) must be taken into consideration should countries insist on going ahead with the exercise, just as he warned nations to learn from past mistakes.
His words, “Getting these right is difficult to do. To be blunt, we have not seen an airport privatization that has fully lived up to expectations. Our members (Airlines) are very frustrated. Airport privatization is an issue that needs careful attention and urgent thinking. It will be a main focus for IATA in the coming years.”
The Federal Government had earlier through Vice-President Yemi Osinbajo hinted that government had concluded plans to concession Lagos, Abuja, Port-Harcourt and Kano aerodromes citing the plans to make it not only efficient but generate money because of scarcity of funds to other critical sectors of the economy.
To that end, Minister of State, Hadi Sirika had moved swiftly to set up modalities for the concession by setting up a committee to midwife the process.
The plan had evoked reactions on the propriety or otherwise of the new move.
Although the planned project has led to protests by the sector’s workers’ unions who vowed to resist the attempt to concession the aerodromes, experts said it is on record globally that the government made mistakes in the past by dabbling into so many businesses that should ordinarily be handled by individuals.
Those who are for airport concession are quick to cite the Murtala Muhammed Airport Domestic Terminal (MAA2) as a good example of private sector-driven development.
The terminal was built by Bi-Courtney Aviation Services Limited (BASL) under a build, operate and transfer agreement. The terminal was opened in 2007 and today when compared to the airport terminals being managed by FAAN, MMA2 is relatively more sophisticated in terms of passenger facilitation, modern facilities and IT equipment.
The IATA boss also backed the liberalization of air transport in Africa, explaining that his recent trip to the continent reminded him of another element of regulation that they are intensifying their work on-the freedom for airlines to do business.
Regulations, he further stated should fundamentally enable airlines to provide connectivity.
To do that, he said, “We need borders that are open to people and trade. Remember, we are the business of freedom.
De Juniac said African governments need to pursue policies that free up the industry that unblock intra Africa connectivity.
He disclosed that between the United Kingdom and Europe, urgent action is needed to negotiate the provision of connectivity post-Brexit.
“As a general rule, the business of freedom is at its best in creating value for the world in a liberalized framework. That is the message that I intend to push quite strongly in the year ahead’, he added.
African leaders have concluded plans to meet January 2018 to fully endorse the single Africa sky policy that could be a landmark for the opening up of airline routes within Africa as long-held aspirations to create a “single African sky” should finally bear fruit.
So far, 23 of the 54 African Union members have committed to implementing the SAATM, which is similar to the European Union’s single aviation market.
These include some of the continent’s biggest nations: Nigeria, Egypt, Kenya, Ethiopia and South Africa.
Attempting to open up air traffic between African countries has not been easy and has mostly been notable for its tortuously slow progress since the signing of the Yamoussoukro Decision in 1999, when 44 nations committed to deregulate air services within Africa.
President, the International Civil Aviation Organisation (ICAO) Council, Dr. Olumuyiwa Benard Aliu, recently said the successful implementation of the SAATM is expected to bring about enhanced air connectivity, traffic growth within the region, higher rates of utilisation for existing airport facilities, increased employment and increased socio-economic benefits.
He noted that there have been various factors impeding the full implementation of the Yamoussoukro Decision.
These he noted include a basic lack of political will and the absence of regulatory instruments, rules and procedures on competition, aligned consumer protection regulations and dispute settlement mechanisms.
