Category: Aviation

Discontentment is growing over the criteria adopted in the concession of some international airports by the last administration. Stakeholders, including members of the National Assembly, are piqued over the exercise, fuelling agitations that the exercise may be cancelled. KELVIN OSA OKUNBOR reports.

Confusion is brewing in the aviation industry over plans by the Federal Government to initiate steps to nullify the handing over of some international airport terminals to private companies.

Packaged as a concession, the new arrangement will see private entities managing terminal buildings at airports in Lagos, Abuja, Port Harcourt, Enugu and Kano, a development that has polarised the air transport space.

Though many industry players have canvassed the transfer of airports from public to private sector management, others believe the model obtainable in other countries may not be applicable in Nigeria.

While some experts canvassed the pair of airports for either privatisation/concession, others call for the setting up of an Airport Management Committee to handle them to make them efficient and viable.

In the last few years, unions in the aviation sector have engaged the government on the model of privatisation to be adopted.

Aviation unions had canvassed the greenfield airport options where private private sector players invest heavily in infrastructure to drive down the cost of air travel

Only last week, the Senate condemned the hurried concessioning of the Aminu Kano International Airport and Nnamdi Azikiwe International Airport by the Federal Government barely six days to the expiration of the former President Muhammadu Buhari administration.

It urged the Federal Government to, if need be, review the entire airport concession and give a level-playing field to stakeholders.

Although Senate committees are yet to be constituted, the Senate also charged its yet-to-be constituted Committee on Aviation, to probe the airport concessions embarked upon by the last administration and make recommendations to it.

These resolutions of the Senate followed its consideration of a motion titled: “Urgent need to reverse the concession of Mallam Aminu Kano International Airport, Kano” sponsored by Senator Kawu Sumaila.

Sumaila, in his lead debate, urged the Senate to note that the Federal Executive Council (FEC), on May 17, 2023, approved the concession of Mallam Aminu Kano International Airport, Kano for 30 years, to Messrs Corporación America Airports Consortium.

According to him, Nigerians are  worried about the rationale in borrowing and spending public money to upgrade the airport only to hand it over to foreign businesses for  30 years as a concessioned entity.

He lamented that by the terms of the concession, Nigeria would be receiving an upfront fee of $1.5million, whereas the total amount of money that the Kano airport is accruing to the government is $97.4million.

He said it was disturbing that the concession was dubious and raised questions on the process and what the actors stood to gain.

Besides, he said unions in the  industry embarked on a strike to question the integrity of the exercise, stressing that the concession of the airport away from FAAN would necessarily cause a cessation of the employment of all the staff involuntarily.

He insisted that concession by the former  administration raised a fundamental question of injustice on why an elephant project with huge public investment would take place just at the end of the administration.

He observed that the gaps in the concession could lead to lawsuits and thus be an embarrassment for  the President Bola Tinubu administration.

He said the Senate was aware that the Federal Ministry of Aviation (and Aerospace) does not own, or run, any airport in Nigeria and that by the Act of the Federal Airports Authority of Nigeria (FAAN), ownership and management of Federal Government airports are vested in the Authority.

He urged the lawmakers to note that the Infrastructure Concession and Regulatory Commission (ICRC) procedure document provides that the  agency that wishes to concession a facility should have the authority to transfer its responsibility.

He insisted that the combined import of the FAAN Act and the ICRC procedures manual shows that the entire airports concession was based on a faulty foundation.

He added: “For there is no doubt that it is the Federal Airports Authority of Nigeria, not the Ministry of Aviation, that has power to transfer its responsibility to a would be concessionaire. It is also FAAN, not the Ministry, which has the requisite ‘legislative and policy framework’ for such.”

He further argued that the claim that the FEC had approved the concession of Mallam Aminu Kano International Airport had no substance, adding that if not, “FEC has indeed been misguided in its decision, and that action cannot amount to anything than a nullity.”

Senators Abdul Ninigi, Adamu Aliero, Ali Ndume, David Jimkuta, Rufai Hanga and others supported the motion.

The prayers of the motion were approved by Senators when they were put to vote by Deputy Senate President Barau Jibrin who presided during plenary.

In his contribution, the Deputy Senate President noted that while the resolution of the Senate to probe the concessions was in order, concession of infrastructure management was the order of the day in advanced countries.

Henoted that the Heathrow Airport in the United States is being managed by a Nigerian, following its concession to him by the American government, saying: “Let’s not throw the baby away with the bath water.”

Investigations show that the companies named as bidders are running around to stave off any cancellation of the deal.

Bi-Courtney Aviation Services Limited (BASL) and the Nigeria Police, Airport Command, have renewed their partnership aimed at improving safety and security at the Murtala Muhammad Airport Terminal 2 (MMA2).

During an inaugural visit to the terminal, the Commissioner of Police, Airport Command, CP Ebong E. Ebibwa, and his team, including Deputy Commissioner of Police (DCP) Kayode Sunday,  renewed the Memorandum of Understanding that has been in place for over 16 years between the two organisations.

The Senior Management Team of BASL, led by Acting Chief Operating Officer, Ms. Tosan Duncan, said the synergy was strategic and key to safe air travels and the deepening of economic prosperity for the state and the country.

Other members of staff of BASL on the entourage were Blessing Ewah, Head of Operations; Monica Oguta, Head of Aviation Security (AvSec); Tinuola Dapo-Awosika, Head of Human Resources; Oluwatosin Onalaja, Head of Corporate Communications; Nofisat Adeniran, Head of Safety;

Others were Oluremi Jibodu, Head of Aeronautical and Cargo Services; Chidoka Uchechukwu, Head of Technical Services; Kola Bamigboye, Head of Space and Premises; Gbubemi Aibangbee, Head of Marketing; and Mr. Abiodun Odude, a former Commissioner of Police and Chief Security Officer to BASL.

In her remarks, Duncan commended the police officials for their commitment to maintaining high-level security within and around the terminal. She also recognized the support of the Nigeria Air Force in supporting this same laudable overview.

She emphasized the importance of providing a safe and peaceful environment for businesses and individuals to thrive, saying beyond the MoU, BASL was willing and ready to support the Nigeria Police on other developmental initiatives.

Duncan stressed that BASL is actively involved in addressing Nigeria’s socio – economic challenges through human capital development and strategic partnerships with state and non-state actors.

“We are not saying this for the sake of it. We want this interface to translate into concrete output. We want to see programmes and projects we can partner with the Police on to sustain and improve the security of our infrastructure, businesses, and the Nigerian people who use our facility and that of our customers daily,” Duncan, added.

In response, CP Ebibwa affirmed that his visit aimed to address the concerns raised by BASL and assured the company of the police command’s unwavering support.

The Police Chief emphasized the importance of safety and security in the aviation business and expressed the police’s commitment to providing their professional expertise.

His remarks: “I am very happy to visit Bi-Courtney Aviation Services Limited, the Operator of the Murtala Muhammed Airport Terminal Two today, one of Nigeria’s most important business investments.

“The purpose of my visit is partly to familiarize myself with the environment, particularly important stakeholders as the management of the MMA2 Terminal, assure you of my command’s unwavering support, and to engage you on how to sustain and even improve the existing partnership for more groundbreaking achievements. So, we are on the same page on this objective.

“We also want you to support us in achieving this objective. We believe the aviation business thrives on safety and security. And it is this key component that is our own professional jurisdiction. That is the value we are bringing to the table. And with your support, we will do well, I believe,” he added.

Retired CP Odude also emphasized the significance of the renewed partnership, stating that it would benefit the residents and environs of the Ikeja central business district of Lagos. The visit aimed to strengthen the cooperation between BASL and the Nigeria Police Airport Command, with the new Commissioner leading the efforts.

Overall, both BASL and the Nigeria Police are dedicated to sustaining and improving security measures to ensure the safety and well-being of the terminal’s users and stakeholders.

There is controversy over the lease agreement on a CRJ 1000 aircraft with serial number 19037 by a Nigerian carrier, following the cancellation of the deal and defaults in clearing outstanding payments to the lessor, who is threatening to tear down the aircraft, writes KELVIN OSA-OKUNBOR

One of the hitherto leading carriers in the country is embroiled in a controversy over efforts to tear down its leased aircraft.

At the centre of the drama is Arik Air, founded by Sir Arumemi Johnson, which is under receivership by the Asset Management Corporation of Nigeria (AMCON). The dispute is between Arik Air founder and agents of Alberta Aviation Capital Corporation ((AAC), Canada which owns the aircraft.

Arik Air in receivership is challenging Johnson’s legal team, which described as fraudulent the the move by the agent to tear down the aircraft.

The owners of the aircraft, AAC, contracted Captain  Samuel  Caulcrick and Merchant Express Cargo Limited to tear down the CRJ1000 with MSN 19037.

Arik Air in receivership said the decision to tear down the airplane came on the heels of the cancellation of the lease agreement with Arik Air, the previous operator, due to substantial and continued defaults in making payments to JEM (the lessor/owner).

 According to a statement by one of the agents, the Chief Executive Officer of Merchant Express Cargo Limited, Captain Shina Akinfenwa, the defaults by Arik Air led to the de-registration of the aircraft by the Nigerian Civil Aviation Authority (NCAA)  from its registry, on July 22, 2022.

Akinfenwa said the company got the consent of the lien holder – the Export Development Canada (EDC), who funded the acquisition of the aircraft by AAC – to ensure ownership reverted to EDC. The aircraft has a Canadian registry allocation.

Akinfenwa said: “We categorically state that Capt Caulcrick was an authorised agent of the new Canadian owners (AAC) of the aircraft and the process for the recovery of the aircraft followed all due process, all of which are properly documented.

“Until contracted on the teardown project, neither Merchant Express nor Capt Caulcrick had anything to do with the cancelled lease or the de-registration of the aircraft by the NCAA.

“We condemn in its entirety the efforts by the founder of Arik Air, Sir Arumem-Johnson, whose airline is under receivership and his lawyers, to use the EFCC to intimidate the authorised agents of the legal owners of aircraft (AAC) in an effort to stop the owners from taking their aircraft in whatever form they choose back to Canada.

“Capt Caulcrick is an outstanding aviator that has worked all his life to protect the integrity and preserve the sanctity of the aviation industry in Nigeria and everywhere else – a dedicated aviator.

“The effort to malign his person can only be the handwork of those that know they do not have any legal rights over the aircraft; otherwise, they would have approached the courts for an injunction to stop the teardown.”

He went on: “Using  the Economic and Financial Crimes Commission (EFCC) is  not the tactics of those with legal rights. It only will harm the aviation industry, which could increase leases and insurance costs for future aircraft leasing for Nigerian operators in the future, while the action is contrary to the Cape Town treaty signed by the Nigerian government to protect the assets of foreign investors.

“We are grateful that the Canadian government is escalating the matter at the diplomatic level to preserve their interest.”

Last week, shareholders of Arik Air called the parties involved in the ongoing probe by the EFCC to cooperate so the anti-graft agency could run the exercise without intereference.

The shareholders said in a statement signed by its Media Office: “In that regard, therefore, we will not comment on any activities of innovative management financing solutions by the receiver-manager and the purported  sale and or tear down of the CRJ 1000, B737NG and other such aircraft and assets of the airline that are subjects of investigation.

“In the meantime, we have advised our lawyers to properly evaluate  matters relating third party involvement in the ongoing matter with the intention to appropriately address all issues solely within the remit of the law.’’

The global commercial aircraft disassembling, dismantling, and recycling market size valued at $5.95 billion in 2021 is projected to grow to $14.35 billion  by 2032, exhibiting a CAGR of 7.85 per cent  during the forecast period.

The value chain was $6.47 billion last year.

The global COVID-19 pandemic has been unprecedented and staggering, with commercial aircraft disassembling, dismantling and recycling experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

Global  commercial aircraft disassembling, dismantling and recycling market exhibited a decline of 12.13 per cent  in 2020 as compared to 2019.

Experts familiar with trend say aircraft  decommissioning is a multidisciplinary process that includes many features,  including environmental, safety, legal, operational and economic.

Decommissioning, the experts say  takes place after the aircraft has passed the end of its useful life.

It includes processes such as aircraft disassembling, engine disassembling, and component disassembling.

Furthermore, the increase in commercial aircraft disassembling, dismantling and recycling facilities is becoming  one of the key market trends.

The industry is becoming greener and more cost-effective. Therefore, recycled aircraft parts from end-of-life aircraft are becoming more and more popular.

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Engine Maintenance, Repair, and Operations (MRO) service providers and lessors are finding increasing demand for some types of older engines or parts in their portfolio.

These requirements create opportunities for Used Serviceable Material (USM) suppliers.

Recent advancements in machine learning and robotics, experts say  have paved the way for new and efficient methods for aircraft disassembly, dismantling, and recycling processes.

In 2020, some experts  developed a robotic system for aircraft disassembly, dismantling, and recycling.

According to Aircraft Fleet Recycling Association (AFRA), nearly 12,000 commercial aircraft would retire in the next two decades.

Moreover, commercial aircraft possess a lifespan of 20 to 25 years on average. An aircraft runs nearly 40 million kms before its estimated end of life.

Commercial aircraft disassembly, dismantling and recycling has witnessed major improvements in the last few years, which led to the development of the process that can recycle nearly 80 percent  of components.

Among the scrapped aircraft, narrow body accounts for nearly 50 percent  of the total retiring fleet whereas wide body accounts for approximately 28 percent. Investigations reveal that the rising number of retiring aircraft and enhanced scrapping process will propel the market growth in near future.

The USM segment , experts will  day dominates the market in the base year due to the growing number of aged aircraft fleet and early aircraft retirements led by COVID-19.

Increasing focus of major airlines on reusing used serviceable materials in their maintenance activities to drive down operational costs will lead to surplus supply of Used Serviceable Material (USM), which will contribute to the segmental growth.

The rotable parts segment will witness moderate growth during the forecast period.

Rotable components are parts that can be used many times by repairing or refurbishing them.

With rising demand for an efficient and cost-effective supply chain for rotables, there have been great efforts within the aviation industry to improve rotable inventory systems and overall inventory management.

Furthermore, recycling and storage segment is anticipated to grow at a moderate pace during the study period owing to the growing number of recycling activities and storage operations for commercial aircraft around the world.

The narrow body aircraft segment is anticipated to lead due to a rise in early retirements of single aisle aircraft by all the major airlines around the world.

Wide body segment will witness significant growth during the forecast period owing to the increasing demand for dismantling and recycling services for wide body and jumbo aircraft.

For instance, in 2021, British Airways, the world’s largest operator of Boeing 747s, grounded its entire fleet of jumbo jets shortly after air travel plunged into free fall due to the COVID-19 pandemic.

The regional jet segment is anticipated to show moderate growth during the study period of 2018-2032.

The high emergence of regional jets in the past has led to high retirement rates for regional jets over the forecast period.

For instance, in 2020, Delta retired over 200 aircraft, which include both mainline and regional aircraft, including CRJ-200s.

Europe held the second-largest commercial aircraft disassembly, dismantling and recycling market share in 2021.

The high growth of the market is attributed to the presence of a large number of aircraft lessors in the region. Moreover, the country has a presence of some major players involved in the market, including Aircraft End of Life Solutions and Air Salvage International, which will aid the regional market proliferation.

The market in Asia Pacific is one of the major emerging markets of commercial aircraft disassembly, dismantling and recycling.

This growth is attributed to the expansion of the airline industry in India and China. The growing aftermarket industry in economies such as India and China will drive market progression in this region. Moreover, India is one of the biggest importers of aircraft scrap, which will also contribute to regional growth.

The market in the Middle East will witness substantial growth in the near future owing to increasing number of retired aircraft fleet in the region.

Moreover, the demand for these services is increasing owing to the increase in investment in aircraft dismantling facilities and presence of key players such as Falcon Aircraft Recycling, Aircraft Solutions Middle East, and others.

The South America region is anticipated to witness moderate growth during the forecast period.

The growth in the region is owing to the increase in attention toward aircraft recycling and dismantling due to the high cost associated with aftermarket components and high economic life. Furthermore, a large number of aircraft operators having expertise in engine teardown is anticipated to boost the market growth.

For instance, in Brazil, LATAM is the biggest domestic airline with the largest fleet.

The Director-General,  Nigerian Meteorological Agency (NIMET), Prof. Mansur Matazu, will lead discussions as Chairman of the  27th Annual Conference of the League of Airport and Aviation Correspondents (LAAC).

A statement by the Secretary, Planning Committee, LAAC Conference, Mr. Albinus Chiedu, said Matazu, was selected based on his  experience and quality leadership as Nimet’s chief.

According to him, the conference with the theme: ‘Aviation Industry: Changing Times, Changing Strategies’ will hold on July 27.

  He added: “The theme of this year’s conference was informed by the emerging changes in approach to aviation business as regards technology, airline management and operations, financing and other aspects of the aviation industry.’’

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 Matazu is an Executive of the World Meteological Organisation.

Besides, Chiedu stated that the Director-General, Civil Aviation (DGCA), Capt. Musa Nuhu, would deliver the keynote address at the event.

Others who would speak were the Managing Director, Federal Airports Authority of Nigeria (FAAN), Kabir Mohammed; his Nigerian Airspace Management Agency (NAMA) counterpart, Tayib Odunowo; and DG, Nigerian Safety Investigation Bureau (NSIB), Akin Olateru.

 Rector of Nigerian College of Aviation Technology (NCAT), Zaria, Capt. Alkali Madibbo, president, Aviation Safety Round Table Initiative (ASRTI), Gabriel Olowo; Managing Director, TopBrass Aviation, Capt. Roland Iyayi and Group Managing Director of Finchglow Travels who also chairs the Association of Aviation Training Organisations (AATOs) in Nigeria, Mr. Bernard Bankole, are being expected.

A Passengers’ experience at the Murtala Muhammed International Airport, Lagos is a pointer to facility dilapidation. Offensive stench around the departure and arrival units, leaking ceilings and other inadequacies call for urgent overhaul of the decaying infrastructure, writes KELVIN OSA-OKUNBOR

Routine ranking of air transport infrastructure by global bodies have indicated that not all airports are equal.

Put on a scale of cleanliness, optimal performance of facilities and timely fixing of broken down equipment, including dilapidated baggage handling systems/carousel, managers of the Murtala Muhammed International Airport (MMIA), Lagos do not  have many reasons  to celebrate. Unfortunately,  not every airport comes out looking so good.

A visit to some sections of the MMIA, last week revealed the underbelly of the over 40-year facility.

Scores of passengers either travelling into or out of the airport complained of offensive stench oozing from the terminal.

Some of the passengers complained that the offensive smell, emanating from some corridors  in the departure and arrival axis speaks to poor cleaning/lax hygiene in the supposed globally rated facility.

Investigations by The Nation reveal ed that during the downpour last Thursday, two buckets were positioned in a section leading to one of the arrival gates to collect water from a leaking roof.

Motorists, who drive around the premier gateway, have complained about the state of disrepair of the roads leading to the Nigerian Civil Aviation Authority (NCAA), annex headquarters, Nigerian Airspace Management Agency (NAMA), Centrex and the stakeholders car park.

This is aside the sprawling expanse of land near the multi-layer car park grown with weed.

A staff member of the regulatory authority last Thursday complained of flood that almost sacked its offices at the Annex Headquarters in Lagos.

Meanwhile, the  new Regional General Manager Southwest, Federal Airports Authority of Nigeria (FAAN), Mr Felix Akinbinu, said  he would ensure that decay at the MMIA)  is  addressed soonest to give air travellers seamless experience.

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He said major work has commenced at the basement of the terminal, which is the source of the offensive odour.

Akinbinu, who spoke with aviation reporters in his office at Ikeja , said the issues around cooling system and toilets will be resolved immediately.

He noted that the age of the airport has contributed to its decay and that they would be addressed.

He said the  chillers and other related facilities would be provided for the comfort of travellers.

 Akinbinu said a technical team charged with on-the-spot assessment of facilities were identifying areas to be given attention adding that  all shortcomings and inadequacies will be addressed in no distance

“Without being told, there are some visible challenges in the airport, we are capable of tackling them, we are taking assessments and we will address them as soon as possible and at the moment if such is being done, there is no way we would compare how the terminal looks like and the current shape, ”  he said.

Akinbinu warned touts and those without business at the airport to steer clear as anyone caught will be prosecuted urging travellers to reduce the number of relatives seeing them off to the airport.

Decrying illegal parking on adjoining roads to the terminal building, he assured of secured and safe airport terminal, ensuring passengers’ comfort, adding that the airport was becoming too small to cope with the traffic.

On the poor state of the alternate road between the training school and the MMIA Terminal, Akinbinu said the contract for its rehabilitation had been approved, stressing that work would  commence soon.

Attempts to pull out a CRJ-1000 aircraft in the fleet of Arik Air in receivership has triggered a debate between the carrier and its lessor. Resolving the impasse has brought to the burner provisions of the Cape Town Convention regarding aircraft repossession and tear down, reports KELVIN OSA OKUNBOR

A mild  drama is unfolding in  the aviation sector following plans by Arik Air to pull out a CRJ-1000 aircraft from its fleet.

According to statement by image managers of Arik Air in receivership- SY&T Communications, the carrier reached an accord with the leasing company that owns  the airplane – JEM Leasing Limited to pull – it out of the fleet based on the decision of its financiers –  Export Development Canada (EDC) to sell the airplane.

The aircraft marked with registration number 5N-JEE, according to SY&t T Communications, will be torn down by the organisation acquiring it.

The airline management said the pulling out of the CRJ 1000 will not in anyway affect its flights.

It said: “Arik Air, as the lessee since 2014, operated the aircraft pursuant to a lease agreement with JEM Leasing Limited. Arik discontinued operations of the CRJ fleet since 2019.

“Arik Air would like to assure  stakeholders, including passengers, partners, and the public, that the decision by the owner and financier of the Aircraft will not impact Arik’s operations or compromise its commitment to providing safe, reliable, and convenient air travel services.”

Less than 24 hours after Arik Air made its position known, JEM Leasing Limited, owners of the CR -1000 denied any involvement in the decision to sell off the aircraft for tear down.

In a statement, the leasing company described Arik Air as the launch customer and only operator of the CRJ- 1000 in Africa. It said JEM Leasing is not party to any arrangement with Arik Air in receivership for any tear down of the aircraft.

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The company said: “The position of Cape Town Convention and the law of every jurisdiction is clear and incontrovertible regarding aircraft repossession and tear down.  JEM Leasing dissociates itself from the purported decision and arrangement regarding the sale and tear down of this new generation CRJ-1000 aircraft in its entirety and urges the criminal investigative authorities of Nigeria to promptly investigate this Asset Destruction Act and the claims of Arik Air in receivership with regard to the false claim.”

Investigations show that the deregistration of the aircraft was carried out last year by EDC through their lawyers and the Nigerian Civil Aviation Authority (NCAA).

A source in NCAA hinted: “What is JEM Leasing claiming. Why would NCAA deregister if the EDC does not own the aircraft. EDC has done the deregistration. It is not even a Nigerian registered aircraft anymore.” 

The relationship between global airlines and aircraft lessors is usually work-in-progress as much as lease rentals and other obligations are settled.

But, the supposed cordial relationship could go awry when the terms of engagement are violated.

To stave off any friction, the International Civil Aviation Organisation (ICAO) has designed templates for addressing issues that may arise in aircraft ownership, leasing, repossession, tear down and other unforeseen circumstances.

Specifically, the  Cape Town Convention  is an international treaty intended to standardise transactions involving movable property, such as aircraft  and its engines, security interests, leases and  various legal remedies for default in financing agreements, including repossession.

The 2001 Convention on the International Interests in Mobile Equipment facilitate the financing of aircraft by providing creditors with an internationally recognised set of rights in the event of a debtor’s default or insolvency.

Experts said the most significant aspect of the Cape Town Convention is the Irrevocable Deregistration and Export Request Authorisation (IDERA).

IDERAs are a remedy under the Cape Town Convention that allows for deregistration and export of an aircraft asset in the event of debtor default or insolvency.

Group Managing Director, Nigerian Aviation Handling Company (NAHCO), Plc, Mr Indranil Gupta has canvassed the timely maintenance of infrastructure provided at the airports by aeronautical authorities, saying failure to fix such facilities is impacting the effective delivery of services by users.

Listing the facilities to include carousels, conveyor belts and scanning machines, the ground handling service provider said when such gaps were bridged, there would be improvement in the operating environment for players.

Speaking with The Nation recently, Gupta said frequent break down of facilities should engage the attention of the airport authorities as they recalibrate the template to scale up measures that would bring about improved safety procedures and enhanced policies for the industry.

Gupta said: “The market is becoming more competitive with the advent of technology and the evolution of of ground support equipment. The new tariffs have also made the market more attractive to new entrants.”

However, the industry is quite specialised with specific skills sets requirements, huge capital investments, and strict regulations which may be quite difficult for new entrants to meet.”

Speaking on strategies that will spur the growth of revenue, Gupta said NAHCO’s investment in setting up a new facility for packaging of perishable export at the Lagos Airport will create the needed push to attain efficiency and effectiveness in its operations.

On the prospects of cargo freighting as the new frontier for sustenance , Gupta said : “ We are quite optimistic that the cargo value chain would grow exponentially to contribute massive revenue for the country . That is why we are strategically positioning Nigeria as a player both in imports of cargo as well as exports. One of the ways to achieve this is a special intervention facility with sufficient equipment to manage the full value chain of packaging, processing as well as the establishment of strategic partnerships/ markets for Nigerian exports. It would also entails the establishment and strict adherence to standard packaging and processing of exports .”

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On other strategic plans to consolidate performance, Gupta said NAHCO is currently embarking on on several undertaking , including the introduction of new businesses , the enhancement of its warehouses and other technology – related projects to improve its service delivery and clients satisfaction.

He said : “ We continue to strive to overcome challenges affecting the growth of the business, including scarcity of foreign exchange, the harsh operating environment. Strategically, we need to force improve on relationship management across stakeholders and clients.

“ We need to tap on deeper understanding of the operating environment, commitment to excellent service delivery and an aggressive outlook for the growth of business concerns.”

Meanwhile, the global Airport Ground Handling Systems Market size valued at $4,191.24 million in 2022 is expected to reach $ 7,450.20 million by 2028, growing at a Culmulative Annual Growth Rate (CAGR)  of 13.33 percent during the forecast period  – 2023-2028.

Global aviation ground handling suffered some setbacks a few years ago due to the slump in demand among travelers and the travel restrictions imposed by many countries due to the COVID-19 pandemic.

The impact of the pandemic affected airport ground handling systems market with notable increase in passenger traffic and aircraft movements in 2021.

With air travel gradually returning to pre-COVID levels, delivering new aircraft, introducing new routes, and increasing flight movements the ground handling value chain is witnessing some spike, which experts say is driving investments in new-generation ground support systems, which is reducing turnaround time for aircraft .

Experts say the construction of new airports, expansion of existing airports to increase passenger and cargo handling capacities, and privatization of airports are expected to drive the growth of the airport ground handling systems market during the forecast period.

The current plans of airports to decrease their carbon footprint has accelerated the deployment of electric ground handling equipment and the integration of advanced technologies like automation systems ramp and cargo handling operations.

Such green initiatives by airport operators are expected to accelerate the market’s growth in the coming years.

The aircraft ground handling systems include equipment used to offer services to an aircraft while it is on the ground and parked at a terminal gate.

 The market is segmented by type and power source. Based on type, the market is segmented into aircraft handling, passenger handling, and cargo and baggage handling. Based on power sources, the market is divided into non-electric and electric.

The aircraft handling segment currently dominates the market and is expected to continue its dominance during the forecast period.

The segment includes refuelers, tugs and tractors, lavatory service vehicles, deicers, ground power units, pre-conditioned air units, fuel trucks, and other ground handling systems in airports.

An increase in expenditure in the aviation sector, construction of new airports, and rising spending on enhancing airport operations from various countries continue to drive the growth of the market. Following the pandemic, various airports around the world are robustly investing in the enhancement of their existing ground handling systems with the introduction of new equipment for their efficient operation.

The current trend of using Ground Support Equipment with low emissions rates and creating green airports has been gaining popularity over the years.

Experts say companies are working on developing new electric aircraft handling solutions that work efficiently with low emissions.

In October 2021, Toyota Material Handling, a subsidiary of Toyota Motor Corp, introduced a new all-electric towing tractor  – 3TE25 –  for airport operations that will replace the current heavy-duty range. The new towing EV , experts say has similar towing capabilities as the conventionally powered towing tractors, with a loading capacity of about 27,000 kg.

The development of new equipment, as well as investments in the procurement of aircraft handling equipment, is anticipated to propel the growth of the segment during the forecast period.

The North American region is expected to witness the highest growth during the forecast period.

This is due to the rapid recovery of the aviation industry from the COVID-19 pandemic impact along with investments of the civil aviation authority and airport operators in the region in the expansion of airports as well as the development of ground handling equipment modernization.

The Federal Aviation Administration (FAA)  has provided various funds to the airports in the United States to introduce electric ground support vehicles in the coming years.

 In October 2022, FAA, the largest United States transportation agency, awarded more than USD 27 million to help a dozen airports to purchase zero-emission buses, charging stations, and other equipment used to service planes at gates.

Also, in addition to the ground handling systems, the airports are investing in the development of infrastructure to ease the induction of electric ground vehicles.

As a part of the new terminal building project at Kansas City International Airport, the Kansas City Aviation Department announced its plan to invest in the first wireless vehicle charging system installed at the United States airport.

The technology is expected to extend the range of its electric buses without installing a charging station or taking buses out of service for charging.

. Such initiatives and growing demand for enhancing ground handling operations will drive market growth in the region during the forecast period.