Presentation on theme: "Federal Airports Authority of Nigeria (FAAN)"— Presentation transcript:
1Federal Airports Authority of Nigeria (FAAN) www.faannigeria.org Presentation byMr. R. AisuebeogunMD/CEOFederal Airports Authority of Nigeria (FAAN)
2FAANINTRODUCTIONFederal Airports Authority of Nigeria (FAAN) was established in 1996 to develop, provide and maintain at airports all necessary services and facilities for the safe, orderly, expeditious and economic operation of air transport, amongst other functions. At FAAN Safety and Security is the watchword and we operate from the premise that...
3FAANINTRODUCTION contd.“A customer (the flying public) is the most important visitor on our premises (Airports), he is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so.” Mahatma Gandhi
4OUR VISION OUR VISION OUR MISSION FAANOUR VISIONOUR VISIONTo be amongst the best airport groups in the worldOUR MISSIONTo develop and profitably manage customer-centric airport facilities for safe, secure and efficient carriage of passengers and goods at world-class standards of quality.
5FAANStatutory FunctionsTo develop, provide and maintain at airports all necessary services and facilities for the safe, orderly, expeditious and economic operation of air transportTo provide adequate facilities and personnel for effective security at all airportsTo provide conducive environment under which passengers and goods would be carried by air and under which aircraft would be used for gainful purposes
6Statutory Functions -contd. FAANStatutory Functions -contd.To provide accommodation and other facilities for effective handling of passengers and freightTo develop and provide facilities for surface transportation at AirportsCarrying out, at airports, such economic activities that are relevant to air transportation and other commercial activities, which are not relevant to air transportation, but which may be carried out without prejudice to its other functions
7FAANCurrent StatusThere are 21 airports under the management of FAAN, categorised into International, Major Domestic and Domestic. The airports in each of the categories operate for 24 hrs, 18 hrs and 10 hrs respectively. The airports are now to be managed regionally viz:
15Current Status -contd. Port Harcourt Region S/n Airport Category 1 FAANCurrent Status contd.Port Harcourt RegionS/nAirportCategory1PHIA, Port HarcourtInternational2Enugu AirportMajor Domestic3MEIA, Calabar4SMICA, OwerriDomestic5*Osubi Airport*Osubi Airport is managed by Shell
16Port Harcourt International FAANPort Harcourt International
19Aviation Statistics (2001-2007) The following presents the aviation statistics as recorded by FAAN over the period 2001 till 2007.The area of Airport Operation Information is to be bolstered by the introduction of our ultra modern robust Airport Operations Database (AODB) with an Electronic Data Capture/Interchange module.
20Aviation Statistics (2001-2007) -cont’d YRPAXAIRCRAFTCARGO*MAIL*20015.22m.13m45.19m11.35m20026.05m.14m52.55m2.92m20037.13m.17m65.12m5.86m20048.14m.20m71.81m12.63m20058.31m.19m106.72m19.84m20068.08m.18m105.86m19.82m20078.41m103.85m34.12m* Weight in Kg
23Focus – Short Term Sustained and continuous debt recovery FAANFocus – Short TermSustained and continuous debt recoverySustained and continuous fund managementFull Automation of the four International Airports for improved and efficient revenue generationImproved relationship with all stake holdersRevamp the Airport and its environs thus ensuring clean and comfortable travel experience
24Focus – Short Term -contd. FAANFocus – Short Term contd.Rehabilitation of PHIA,MMA Runway 18L and MAKIA Domestic Terminal.ICAO and FAA Category 1 certification for MMAImproved service delivery to the travelling public & our clientsTraining and retraining of staff on mandatory programs for airport certification
26Focus – MediumTerm Infrastructural improvement. FAANFocus – MediumTermInfrastructural improvement.Improvement in fire and Safety management at all airports.Create incentives for Private-Public PartnershipsIncreased Non-Aero Revenue
27FAANFocus – LongTermTo make all the Airports under FAAN Management viable.Automation and integration of all airports with Headquarters.Seamless communicationExpansion of infrastructure provisionAcquisition of long-term financial facility from Developmental Banks. E.g. ADB,etc
30REVENUE BUDGET Vs ACTUAL FOR JAN. – DEC. ‘07 FAANREVENUE BUDGET Vs ACTUAL FOR JAN. – DEC. ‘07REV. HEADSBUD-GETGEN-ERATED.BAL-ANCE.VAR.Revenue1815.69(2.31)(14.75%)FGN Appropriated Fund9.93(9.94)(0.00%)TOTAL27.94(12.24)(78.10%)All Revenue in Billion Naira
31EXPENDITURE BUDGET Vs ACTUAL FOR JAN. – DEC. ‘07 FAANEXPENDITURE BUDGET Vs ACTUAL FOR JAN. – DEC. ‘07EXP. HEADSBUDGET (bn)ACTUAL(bn)BAL.VAR (%)Personnel7.546.141.41(4.82)Overheads6.746.410.33(5.15)Capital Projs. (IGR)&Debts3.722.711.01(37.18)Appr.Capital Projects9.94 ***(0.00)TOTAL27.9415.262.75(71.08)*** - Enbloc deduction by AGF
32Performance Summary -contd. FAANPerformance Summary -contd.We budgeted a total revenue of N18bn from IGR and N9.936bn as anticipated FGN Appropriation, totalling N27.936bn.As at end of the year, Total IGR was N16.329bn, i.e (71.08%) of Budgetted Expenditure.
33Performance Summary -contd. FAANPerformance Summary -contd.The shortfall on revenue generation is due to:Revocation of licenses of some Airlines due to non-compliance of NCAA Regulations.Commencement of operations at BOT TerminalGrounding of aircraft in the Airlines’ fleet due to none airworthiness.
35FAAN2008 Budget FocusUpgrading, renewal and maintenance of the Runways, Perimeter Fences, Terminal buildings and other infrastructures and equipments so as to improve the Airports’ efficiency, capacity utilization and also attain the ICAO standards.Improvement in safety, security, facilitation, fire fighting and prevention measures;
36FAAN2008 Budget Focus contd.Improvement in automation and information technology;Improvement in Human Resource Management and effectiveness for efficiency.
37BUDGETED REVENUE 2008 Head Amount i IGR Aero. 17.52bn Non. Aero. FAANBUDGETED REVENUE 2008HeadAmountiIGRAero.17.52bnNon. Aero.6.48bn24.00bniiFGN Appro. (MTSS)1.40bnTOTAL25.40 bn
38BUDGETED EXPENDITURE 2008 Head Amount i Personnel 8.17bn ii FAANBUDGETED EXPENDITURE 2008HeadAmountiPersonnel8.17bniiOverheads *7.07bniiiIGR Capt. Proj., Capt. Debts.,Safe Tower Loan8.76bnivFGN Appro. Capt Projects1.40bnTOTAL25.40 bn*The Overhead costs include contribution of 5% landingfees to NIMET and operating surplus to FGN.
44FAANPROJECT HIGHLIGHTSThere are over 180 projects on-going at various stages of completion across the Airports. We have been striving to meet-up with our payments as much as we can while prioritising in the light of the Budgetary constraints
45PROJECTS HIGHLIGHTS Resurfacing of MMIA Domestic Runway FAANPROJECTS HIGHLIGHTSResurfacing of MMIA Domestic RunwayCARGO Apron expansion at MMIAWater Supply Improvement at MMIANew Domestic Terminal at MAKIAPHIA Terminal Rehabilitation, Apron Expansion, Runway Resurfacing and Power ImprovementProcurement of 20 Fire TendersCat II AFL Installation at SMICA
52CHALLENGES Decayed and decaying Airport Infrastructure FAANCHALLENGESDecayed and decaying Airport InfrastructureCrippling Indebtedness to Contractors.Rising Debt profile of Government Agencies and Airlines to FAANAppropriate & Right StaffingHigh Wage-Revenue RatioDwindling RevenuesHigh rate of Litigation and its attendant cost.Uncompleted Projects
53Challenges -cont’dFunding of mandatory programs for Fire, AVSEC and Operations staff for airport certification.Funding Pensions Liability gap of about N30bn.
55OpportunitiesInvestment opportunities abound in Nigeria airports for both local and foreign investors.The scope for growth is vast, especially in the non-aero sector as seen in the ratio of Aero to Non-aero revenue which is 85:15Most airports worldwide generate up to 50% of their revenue from Non-Aero Sources. Investment in Airports infrastructural facilities top list of such opportunities as listed below: -
56Opportunities -cont’d Construction and management of terminal building; already, Bi-Courtney and Associates has started the operation of the first Build Operate and Transfer (BOT) MMA Domestic Terminal 1.Construction of Runways, taxiways and aprons;Construction and management of helipads.Construction and management of Independent Power Plants (IPP)
6510 Reasons why you should do business with FAAN The ratio of Aeronautical revenue to Non Aeronautical revenue in the sector is still about 85:15, whilst world over Non-Aero revenue is averages 50%, hence there is great scope for growth.There is a direct linkage between economic prosperity, population growth and airport/airline/tourism activities.
6610 Reasons why you should do business with FAAN -cont’d A number of indices can make FAAN and, by extension, tourism attractive and flourishing. Investors will find the new improved airports and Nigeria generally a haven for the following reasons:-Stable democratic governmentHigh population (Over 140 million people)Diversified economy (farming, mining, manufacturing etc.)
6710 Reasons why you should do business with FAAN -cont’d Diverse and rich cultural heritagePotentially popular tourist destinations, a country of scenic beauty with airport connections e.g. in Cross River, Bauchi, Kwara, Osun, Plateau,Taraba and Adamawa states.Good export potential in Agricultural produce and Solid Minerals (cargo)
6810 Reasons why you should do business with FAAN -cont’d The Government’s current support for growth in aviation and tourism industries is a tonic;Huge investment potential in all facts of the economy;Friendly populace.World-class hotels/restaurants are available everywhere in Nigeria.