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Tag: FAAN

  • FAAN, Bi- Courtney in fresh war of words over billboards

    FAAN, Bi- Courtney in fresh war of words over billboards

    * Trade blame over use of ‘thugs’

    The Federal Airports Authority of Nigeria (FAAN) and Bi- Courtney Aviation Services yesterday launched into a fresh war of words after each side accused the other of employing thugs to perpetrate illegality in and around the Ikeja Airport.

    The bone of contention was the billboards which FAAN accused Bi-Courtney of placing at the airport illegally with the aid of thugs.

    The authority tore down the billboards with Bi-Courtney alleging that FAAN did so with thugs.

    It was their second face off in as many weeks.

    The coordinating spokesman for agencies in the aviation sector, Mr Yakubu Dati, said Bi-Courtney has no right to erect billboards on any property that does not belong to it and this includes the airport.

    Dati, who is also the general manager, Corporate Communications, said Bi- Courtney’s alleged violation of the rules and regulations of government is a serious infraction that will not be allowed to stand.

    He said:” We woke up this Saturday (yesterday) to discover that our property has been invaded by hoodlums, who decided to mount billboards.

    “Thugs and hoodlums hired by Bi-Courtney Aviation Services Limited, operators of the MMA Domestic Terminal 2 (MMA 2) concession, caused a brief breach of the peace around the terminal when they forcefully replaced the advertisement flex removed by the Federal Airports Authority of Nigeria.

    “That is why we mobilised to recover the property and sanitise the whole environment. As you can see now, we have cleaned up the whole place and sanity has been restored.

    “Only two weeks ago, we ordered that nobody should place any advertisement around the airport until, such persons clear with FAAN, the manager of the entire airport.

    “We would not allow this, and security agencies will wake up and do the needful.”

    Dati denied any knowledge of a court injunction that grants ownership of the property to Bi-Courtney.

    “How can a tenant claim to be more powerful than the landlord, this is unacceptable.”

    However, Mr. Steve Omolale-Ajulo, who spoke for Bi-Courtney said it was FAAN that engaged 60 thugs to assault workers of the aviation services company.

    He said: “For the second time in two weeks, officials of the Federal Airports Authority of Nigeria (FAAN) vandalised the advert billboards placed by Bi-Courtney Aviation Services Limited (BASL) on the hotel project at the Murtala Muhammed Airport (MMA2) yesterday.

    “Besides, the agency’s officials with about 60 hired thugs invaded the premises of MMA2, where they assaulted the workers, damaged a video camera and seized many handsets belonging to the workers.

    “They swooped on the billboard barely 15 minutes after it was reinstalled and vandalised it before taking it away in a van.

    “They had earlier vandalised the same advert billboards on the hotel project and another on the pedestrian bridge on Thursday, June 6, this year, despite a subsisting court order by Justice Stephen Adah of the Federal High Court, Ikeja Division, given on November 15, 2011.

    “But yesterday, the FAAN officials stormed the site of the hotel project in several vans, buses and a fire truck and once again pulled down the billboards, causing heavy traffic jam on Airport Road.

    “Angry that the action was being recorded on video camera and mobile phones, FAAN’s officials and their hired thugs pursued BASL’s workers they suspected were doing so into the premises of MMA2 and beat them up while attempting to seize their cameras and phones.

    “In the process, many of our workers were seriously injured, while a video camera belonging to BASL’s Communications Department was seized from the cameraman, damaged and taken away on the excuse that he was recording the vandalism of the billboards.

    “They moved from the gate to the Cargo Shed of MMA2, where they assaulted many of the workers, who trooped out to witness FAAN’s show of shame, injuring them in the process.”

    BASL officials reported the assault to the police yesterday.

    The face off and the tension generated by it caused a gridlock on the airport access road before FAAN security officials dispersed them and order restored.

     

  • Fresh dust in aviation as FAAN destroys Bi-Courtney’s billboards

    A fresh dust has been raised in the aviation industry with last week’s damage to two billboards belonging to Bi-Courtney Aviation Services Limited (BASL) at the Murtala Muhammed Airport Terminal Two (MMA2) by the Federal Airports Authority of Nigeria (FAAN).

    The damage occurred without a prior notice by FAAN, according to BASL.

    The organisation has a court judgement restraining FAAN from tampering with any of its adverts.

    But officials of the government agency, with heavily-armed policemen, allegedly stormed the pedestrian overhead bridge connecting the MMA2 multi-storey car park (MSCP) with an unmarked truck and vandalised Bi-Courtney’s billboard on the bridge, creating serious disruption of traffic on Airport Road.

    FAAN said it ordered the removal of all illegal advertisement materials on billboards and structures on Murtala Muhammed Airport Road in Lagos.

    According to its General Manager, Corporate Communication, Mr. Yakubu Dati, the placement of such advert materials infringes on advertisement rights of FAAN.

    He said this is because the company or organisation liable for the placing of the advert materials did not receive FAAN’s permission to do so.

    “Every advert placement within the airport premises, including the internal and access roads must be done with the authorisation of FAAN, which has the right over all airport land as contained in the act establishing the Authority,” Dati said.

    Bi-Courtney had sued FAAN and its Managing Director before Justice Stephen Jonah Adah of the Federal High Court in 2010.

    The company is seeking, among others: “A declaration that the defendants are not entitled to unilaterally remove, pull down, destroy, dismantle and/or interfere with the adverts placed on the plaintiff’s overhead pedestrian bridge at its terminal in the MMA2, without first referring same to the dispute resolution mechanisms set up under Article 22 of the Concession Agreement dated 24th April, 2003.

    “A declaration that any act of the Defendants by which it seeks to unilaterally remove, destroy, dismantle and/or interfere with or otherwise cause the removal, destruction, dismantling and/or interfere with the adverts placed on the plaintiff’s overhead pedestrian bridge at its Terminal in the MMA2, by self-help and without recourse to the Concession Agreement dated 24th April, 2003 and ultra vires the Federal Airports Authority Act, Cap F5 LFN 2004.

    The originating summons was supported by 11 paragraphs affidavit deposed to by Olabayo Oluwabukunola, a legal officer of the plaintiff.

    But, FAAN in its preliminary objection to the suit, contended that the court lacks jurisdiction to entertain it, or that the matter be “stayed pending the resolution of the matter via dispute resolution mechanism provided in the Concession Agreement”.

    However, in his judgement of November 15, last year, Justice Adah granted Bi-Courtney’s prayer by restraining FAAN from tampering with the company’s advert on the overhead bridge.

    Reacting to the destruction of the billboards, Dati said: “Every advert placement within the airport premises, including the internal and access roads, must be done with the authorisation of FAAN, which has the right over all airport land as contained in the Act estabilishing the authority.”

    Contrary to the argument, Bi-Courtney, however, said it did not need FAAN’s permission before putting its adverts on the structures at MMA2.

    Head of Litigation, Bi-Courtney Limited, Tola Oshobi, explained further: “I want to say that we do need any permission from FAAN. The matter has already been settled by Justice Stephen Jonah Adah of the Federal High Court, Ikeja Division, in November 2011.

    “By virtue of the concession agreement we have with FAAN and the lease agreement on the hotel project, we do not require any permission from the agency or any other government agency to place adverts on both the bridge and our ongoing hotel/conference centre projects. Justice Adah had granted the relief we sought in the suit we instituted against FAAN and its Managing Director in the Federal High Court.”

  • Bi- Courtney kicks as FAAN pulls down billboards

    Bi- Courtney kicks as FAAN pulls down billboards

    The disagreement between the Federal Airports Authority of Nigeria (FAAN) and Bi- Courtney Aviation Services Limite (BASL) over concession took a different twist yesterday as billboards erected by Bi- Courtney at the Lagos Airport were pulled down by FAAN officials.

    FAAN said it ordered the removal of all illegal advertisement material on billboards and structures along the internal road of the Murtala Muhammed Airport in Lagos.

    According to its General Manager, Corporate Communication, Mr Yakubu Dati,  the placement  of such advert material infringed on advertisement rights of FAAN, since the company or organisation liable for the placing of the advert material did not receive FAAN’s permission to do so.

    “Every advert placement within the airport premises, including the internal and access roads must be done with the authorisation of FAAN, which has the right over all airport land as contained in the act establishing the Authority,” he said.

    Dati said the exercise to remove all illegal advertisements at all airports was informed by the fact that the companies that have advert concession with FAAN have all refused to honor the terms of agreement for the concession, and in defiance, have continued to collect money from third party companies for advert placement without paying FAAN its due.

    He said : “The exercise will continue nationwide, to plug any such loophole in the revenue generation and collection of FAAN, to help in truly making the Authority more self sustaining.”

    Bi-Courtney swiftly kicked against the action of FAAN, arguing that it was a gross violation of the concession agreement the firm signed with FAAN.

    Head of Litigation at Bi-Courtney, Tola Oshobi, said the pulling down of the billboards was at variance with a suit instituted against FAAN by Bi- Courtney in November 2011, challenging the propriety of the airport authority to pull down advertisement billboards installed by Bi- Courtney, which came before the Federal High Court for resolution.

    “If there is any dispute between FAAN and Bi -Courtney, this dispute must be resolved by arbitration in accordance with article 22 of the concession agreement,” he averred.

  • FAAN gets ultimatum

    FAAN gets ultimatum

    The Air Transport Services Senior Staff Association (ATSSSAN) is mobilising workers in the Federal Airports Authority of Nigeria (FAAN) for a showdown with the management of the authority over unresolved labour-related issues.

    This is happening one week after workers of the Nigeria Airspace Management Agency (NAMA) embarked on a protest to ask for a full implementation of a new salary scale.

    ATSSSAN has given the management of FAAN a 21-day ultimatum to address the welfare issues bordering on conditions of service.

    The union threatened that failure to meet the workers’ demands would lead to an industrial disharmony.

    In a petition to the Managing Director of FAAN, Mr. George Uriesi, signed by Comrade Olayinka Abioye, on behalf of ATSSSAN, it noted that the management of FAAN has failed to meet its obligation to its workers on the issues bordering on welfare.

    Copies of the petition were also sent to the offices of the Ministers of Labour and Productivity as well as Aviation.

  • FAAN earns N100m at GAT from lease rentals

    FAAN earns N100m at GAT from lease rentals

    The Federal Airports Authority of Nigeria (FAAN) earned over N100 million from lease rentals at the remodelled General Aviation Terminal of the Murtala  Muhammed Airport, Ikeja, Lagos, its Managing Director, Mr George Uriesi, has said.

    Speaking during an interview with The Nation in Lagos, he said the authority is seeking ways to boost its revenue at airports nationwide under a new arrangement expected to attract investors.

    Part of measure is a new regime of concessions and lease rentals.

    To achieve this, FAAN is embarking on facility upgrade at airports to attract more investors in the aeronautical and non aeronautical areas.

    Mr Uriesi said the authority is handling over 73 projects nationwide, as a strategy to make the environment more investor-friendly.

    Part of the projects include the remodelling of the  Murtala Muhammed International Airport, which will create more space for offices, shops and other retail outlets to be taken by ancillary service providers.

    One of the projects being considered is the construction of the multi-layer car park at both the domestic and international wings of the airport, which is expected to generate revenue for the authority.

    He said the access toll gate at the Lagos Airport is also being expanded to create room for more lanes, where FAAN will earn more than N40 million that the concessionaire is expected to remit to the authority.

    Plans are afoot to build a car park and a cargo terminal at the cargo wing of the airport. They are expected to fetch more revenue for the authority, he added.

     

     

     

    Another project expected to generate revenue for FAAN is the construction of a general aviation terminal for charter operations at the Abuja Airport.

    Most of the projects are being funded by the Federal Government under the remodeling initiative , while efforts are on to engage private sector investors under a transparent arrangement.

    The Federal Government has spent over N800 million to fix the remodeling of the Lagos and Abuja airports.

    Uriesi said given the commercial strategy in place, FAAN will by next year recoup the N648 million spent in remodeling the general aviation terminal of the Murtala Muhammed Airport.

    He said FAAN could not achieve much last year from its internally generated revenue, because most of the airports non-aeronautical revenue sources could not be achieved on account of closure for reconstruction under the remodelling exercise.

    He explained that because FAAN is bogged by the huge debt profile owed by airlines, it has engaged consultants to assist in recovering the monies from the debtors, who he said are complying.

    He said the strategy of engagement with debtors will pay off, as the airport authority will require huge funds to meet its capital commitments.

     

  • Suspected thieves arrested on Abuja flight

    Suspected thieves arrested on Abuja flight

    Two passengers on an Abuja-bound Med-View Airline flight were on Wednesday arrested by Federal Airports Authority of Nigeria( FAAN) security personnel for attempting to steal the sum of N1.5m from the hand-luggage compartment of the aircraft.

    Confirming the development , FAAN General Manager, corporate communications  Mr Yakubu Dati said  the flight which was scheduled to depart MMA2 for Abuja at 9.00am , but had to be  delayed due to  the incident.

    Dati explained that the attention of FAAN’s Aviation Security personnel was called to the said aircraft by the cabin crew of the airline when an argument ensued between two passengers over missing money from the luggage of one of the passengers, who raised an alarm

    Two of the passengers who were suspected by the passenger who raised the alarm were later subjected to body search and substantial amounts of money were found on them.

    The two men were later taken away and are undergoing preliminary interrogation at FAAN’s Crime Investigation Bureau, from where they would be handed over to the Police for further investigations.

     Dati said :” FAAN wishes to assure the public, especially passengers, that people engaged in nefarious activities at our airports, will no longer find life comfortable at our airports, as adequate security measures have been put in place to make our airports safer and more secure.”

    Meanwhile, a source at the airport hinted that the suspected passengers trailed the man from the bank where he collected the money.

    On arrival at the MMA 2, the suspects were said to have monitored the other passenger to Medview  Airlines counter, bought tickets  and  solicited from the personnel at the check in counters to put their seats near the other passenger, to enable them put their black bag at the same overhead cabin compartment.

    The source hinted that as the suspected thieves stood up to collect the money in a black nylon bag  from the overhead cabin compartment, the owner got suspicious to check his bag for his personal items for prayers, when he observed that his bag was open, and the money had disappeared, forcing him to raise alarm.

    As an argument ensued, the pilot directed that the aircraft could not embark on the flight, until some security checks were carried out,which led to the discovery of the money on the seat of the suspected passengers.

  • Concessions, remodelling hold sway in aviation

    Concessions, remodelling hold sway in aviation

    Activities and operations in the aviation sector in the first quarter of this year have been dominated by the controversy surrounding the concession agreement between the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney. The sack of the industry regulator, Dr. Harold Demuren, was a major upset in the period, reports KELVIN OSA OKUNBOR.

    The last three months have been a mixed bag for players and operators in the sector.

    In the airlines sub sector, the carriers have been grappling with a myraid of challenges, ranging from increasing operating costs, driven high cost of aviation fuel, fluctuating passenger traffic on some routes, high cost of aircraft maintenance, amongst other challenges.

    One salient development in the sector during the quarter, is the shrinking of the number of domestic airlines. So far, over four domestic carriers have stopped flying. They include, First Nation airways, Associated Aviation, Afrijet Airlines and Air Nigeria.

    Keeping the business afloat, has been the headache of most operators.

    On the domestic scene, Arik Air, Dana Air, Chanchangi Airlines, IRS Airlines, Medview Airlines , Overland Airways and Aero Airlines still operate scheduled flights.

    Apart from the increasing operational costs, the use of the right equipment by airlines to service their routes, has remained in the front burner.

    Some players in the sector have canvassed the use of the turbo propeller aircraft, as being the most economical for short and medium haul flights as opposed to the deployment of jets, which consumes more fuel.Part of the survival strategies experts think will bring about airline profitability include, the use of the right equipment, interline agreement among the carriers, as well as cheaper access to funds to acquire aircraft.

    Under the period, some developments involving Dana Air and Aero Airlines came to the fore.

    The return of Dana Air’s operating licence raise some dust.

    As the airline is gradually regaining passengers’ confidence, the recent suspension of its operations over a snag in one of its aircraft in Abuja, altered the equation, over safety concerns. Nonetheless, its re-entry brought about reduction in air fares.

    Aero Airlines was enmeshed in a crisis in the period. The ruffle resulted in the sack of about 600 workers, and the suspention of its flights.

    The furore generated over the industrial disharmony created serious challenges in the aviation sector, resulting in limited options for passengers. The strike paved way for competitors to have a field day.

    Following the intervention of the National Assembly and the unions, the airline at the weekend resumed operations, with a proviso that all disengaged staff would be recalled.

    The airline has, however, lost over N1.5 billion as revenue that would have accrued from ticket sales for two weeks its aircraft were off the skies.

     

    Airport Concessions

    In the period under review, the industry has been enmeshed in the murky waters over concession.

    The major concession controversy that has torn the industry apart in the period include the tenure over the agreement of the new domestic terminal two of the Murtala Muhammed Airport, Ikeja, Lagos, involving Bi-Courtney Aviation Services Limited and the Federal Airports Authority of Nigeria (FAAN).

    The Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney have locked horns over a parcel of land concessioned to the firm for the building of a hotel and car park services.

    While FAAN is insisting that the tenure of the concession remains 12 years, the concessionaire – Bi – Courtney Aviation Services Limited – contends that it is 36 years.

    Also, the tussle over control of the old domestic terminal of the Murtala Muhammed Airport,Ikeja, Lagos , between FAAN and Bi- Courtney remains as contentious as ever, with none of the parties willing to shift grounds.

     

    Airport Remodelling

    Another significant area where the industry has actualised a giant leap borders on remodelling of airports.

    In the period, three domestic airport terminals have been remodelled and inaugurated.

    The airports include the old domestic terminal of the Lagos Airport, Ikeja, Lagos, which hitherto was designed for 700,000 passengers yearly, but can process over four million passengers.

    For many stakeholders, that was the best thing that happened to the sector in the last 30 years, when the sector experienced decaying infrastructure.

    Besides, a new general terminal for chartered and private aircraft operators was commissioned at the Nnamdi Azikiwe International Airport, Abuja.

    Stakeholders have adjudged the project as comparable to others in other climes.

    The period also saw the the remodelling and inauguration of the Mallam Aminu Kano International Airport. The Federal Government has also concluded plans to attract two foreign airlines to operate from Kano to other parts of the world. Plans are also underway to facilitate the export of agricultural products from the airport.

    Another stride accomplished in the period under review is the completion and inuguration of the Benin Airport, by FAAN, under the airport remodelling project. Also, Sam Mbakwe International Cargo Airport, in Owerri is completed and ready for inauguration.

    Apart from the completion and inauguration of some of the terminals under the remodelling initiative, construction work is on going in other airports situated in Ilorin, Port Harcourt, Maiduguri, Sokoto, Enugu, Minna, Akure, Calabar, Katsina, Kaduna,Makurdi, Yola, Jos and Ibadan.

    Also within the period, the Federal Government is wrapping up plans to secure investors from China that will deliver four brand new international terminals in Lagos, Abuja, Port Harcourt, Enugu and Kano.

     

    30 airport for domestic airlines

    Under the review period, the Federal Government is pursuing programmes to assist in facilitating financing for the acquisition of at least 30 aircraft for domestic airlines. Stakeholders have lauded the development as a welcome move, aimed at adding value to the quality of aircraft flying in the airspace.

    Sequel to the proposal, aircraft manufacturers, including Brazilian firm: Embraer; Canadian Company: Bombardier , Boeing Company ; ATR and many others have submitted proposals to the Federal Government, on why they think their aircraft is suitable for the Nigerian environment.

    Minister of Aviation, Princess Stella Oduah, confirmed that though the government has not settled for any aircraft type, but factors that will influence its choice will include aircraft type that is cheaper to operate, fuel efficient as well as the conditions of payment that will give room for flexibility.

    On the proposal, Chief Executive Officer of Landover Aviation Company, Captain Edward Boyo, said it would be good for the government to assist domestic carriers.

     

    Airport certification

    In the period under review, FAAN also unveiled plans to facilitate the certification of the Lagos and Abuja airports by the International Civil Aviation Organisation ( ICAO).

    According the Director of Airport Operations, Captain Henry Omoegwu, one of the steps taken to achieve this include the repairs of five fire trucks by the airport authority to meet the prescribed minimum requirement for fire cover for the airports.

     

    Demuren’s sack , NCAA

    In the period, the regulatory arm of the aviation sector was under the searchlight, with many stakeholders alleging that the regime of civil aviation regulation is on the recline.

    The former director-general of NCAA, Dr Harold Demuren, was sacked for his inability to give favourable response to queries raised by stakeholders.

    What could be the defining moment for the sector in the period under review, is the wrapping up of a new template for investors drawn up by FAAN, that would give room for only credit worthy and committed investors and concessionaires in the industry.

    The new arrangement, according to the Managing Director of FAAN, Mr George Uriesi, is the paradigm hift that see FAAN negotiating businesses and agreements in line with global industry best practices. Above all, the clamour for the setting up of an aircraft maintenance hangar by experts in the sector, if achievable could save domestic carriers the huge cost expended on offshore repairs of their aircraft.

    With Embraer finalising plans to set up an aircraft maintenance and service centre in Kaduna, as well as Arik Air planning to rebuild its aircraft maintenance hangar in Lagos in collaboration with Lufthansa Technik and Bombardier, the sector is on the path to recovery.

  • FAAN, Bi-Courtney bicker over N1.2b debt

    The Federal Airports Authority of Nigeria (FAAN) has asked Bi-Courtney Aviation Services Limited (BASL) to pay it N1.9billion for services it rendered to Bi-Courtney at the domestic terminal of the Murtala Muhammed International Airport, Lagos.

    Bi-Courtney described the alleged debt as a figment of FAAN’s imagination.

    It insisted that it is the authority that owes it N132 billion in judgment debt.

    BASL is operating the domestic terminal under the Build, Operate and Transfer (BOT) concession agreement.

    FAAN’s General Manager, Corporate Communications, Yakubu Dati said the figure represents the total amount owed FAAN for the services it rendered the company as spelt out in the concession agreement since September 8, 2007, when Bi-Courtney began operating the terminal.

    It alleged that Bi-Courtney has rebuffed every attempt to recover the debt, including debt reconciliation meetings between officials of the two organisations.

    These debts include aviation security (N45,604,085.74); fire/safety cost (N36,649,223.96); marshalling (N2,125,065.54); electricity cost (N252,038,510.006) ; maintenance band, (N200,000,000.00); (concession fees (N726,900,069.00); Hotel (N97,200,000.00); Hotel, (N9,720,000.00); Conference Hall (N73,860,219.00); Conference Hall (N7,386,021.00), totalling N1,968,634,455.95.

    FAAN alleged that the Federal High Court in Lagos dismissed an application filed by Bi-Courtney, seeking to restrain FAAN and its agents from taking possession of the four-star hotel and conference centre at the airport.

    Dati said: “It is important to state that since Bi-Courtney started operating the BOT terminal in 2007, it has refused to make its audited account available to FAAN, despite several reminder letters.

    “Bi-Courtney made that application without notifying FAAN, in its traditional style of getting court injunctions behind the Authority, in virtually all the cases involving the two organisations.”

    But Bi-Courtney’s spokesman Steve Omolale- Ajulo said: “FAAN claims that an action of ours seeking to restrain it from interfering with our hotel and conference centre projects has been dismissed.

    “It made the statement without showing a copy of the court ruling, the title of the case, or even the date it was delivered.

    “This is a figment of FAAN’s imagination and it is consistent with its desire to misinform the public.

    “Our natural inclination is to ignore the ranting of FAAN.

    “We are only constrained to respond because some unsuspecting members of the public can be misled by the statement.

    “For the avoidance of doubt, we are not in any way indebted to FAAN.

    “On the contrary, FAAN is indebted to us. The Federal Government and its agencies, including FAAN, owe us over N132 billion in judgment debt.

    “Our position has been confirmed by the arbitral proceedings and court judgments.

    “FAAN appealed against the court judgment and the appeal was dismissed.

    “There is no court judgment or order against us.

    “All the judgments and orders are against FAAN that believes that it is above the law.”

  • Row over incessant airport concessions

    Row over incessant airport concessions

    Airport concessions, expected to add value to investments in the aviation industry, have become a fallacy. In the last three years, about four airport concessions have been terminated. As the airport authority wraps up a new template for potential investors, will this put an end to the controversies that have continued to trail these concessions? KELVIN OSA-OKUNBOR reports

    These are not the best of times for concessionaires in the aviation industry. This is because their dreams of improving on the services they provide have been shattered by persistent revocation and termination of agreements by the Federal Airports Authority of Nigeria (FAAN).

    In the last three years at least three strategic concessions involving the collection of port charges at the Murtala Muhammed International Airport , Ikeja, Lagos by PanExpress Nigeria Limited was terminated by FAAN for alleged lack of performance as the firm failed to remit the agreed sum into the coffers of the authority.

    Just as the furore over the termination of the concession to Pan Express Nigeria Limited was about to settle, the concessionaire (Maevis Limited) for the provision of the automated of airport operations management system (AOMS) at the Murtala Muhammed International Airport, Ikeja, Lagos and Nnamdi Azikiwe International Airport, Abuja was terminated.

    The termination of the Maevis Limited’s concession was not without the attendant legal implications as the firm is still in court to contest the propriety of its agreement, which was terminated by FAAN.

    The contest over the ownership of the old domestic terminal of the Murtala Muhammed Airport, Ikeja, Lagos otherwise known as the General Aviation Terminal is still being contested between FAAN and Bi-Courtney Aviation Services Limited.

    FAAN has since insisted that the concession it signed with the firm does not cover the old domestic terminal, which it has since remodelled and rechristened Terminal One of Murtala Muhammed Airport, Ikeja, Lagos.

    This is aside the raging controversy over the termination of the lease concession of a large parcel of land at the Murtala Muhammed International Airport, Ikeja, Lagos to AIC Hotel Limited.

    FAAN, and AIC Hotel Limited are still in court over the termination of the lease agreement as attempts to resolve the impasse at the arbitration panel has failed .

    Only last week, FAAN announced the terminal of two lease agreement it signed with Bi – Courtney Aviation Services Limited, for the development of a four star hotel and conference centre at the Murtala Muhammed Airport, Ikeja, Lagos.

    The spokesman of FAAN, Mr Yakubu Dati, said: ”The Federal Airports Authority of Nigeria (FAAN) has terminated two leases granted Bi-Courtney Limited at the Murtala Muhammed Airport, Ikeja for the development and management of a four-star hotel and conference centre.

    In two separate letters, dated April 19, 2012, the Authority had informed Bi-Courtney that the leases granted it in respect of the two projects had been terminated as a result of breaches committed by the company in the agreements it signed with FAAN on the two projects.

    By the said agreements, the two projects were to be completed in 2008 but FAAN said it graciously extended the construction period to July 2009 but Bi-Courtney still failed to complete the two projects at the expiration of the extended period.

    He said: “By that termination order, the two projects have reverted to FAAN automatically, in line with the terms of the agreements. Bi-Courtney forcefully and illegally acquired part of the premises belonging to the Murtala Muhammed Airport, School, Ikeja to construct the conference centre, despite loud protest by the pupils and parents of the school.

    “It was these protests that stopped the company from acquiring the entire premises of the school, which Bi-Courtney had planned to take to another location in Lagos.”

    Bi-Courtney, on its part, described the termination directive by FAAN as laughable, saying that the airport authority was misleading the public because the matter in context was already in court.

    The firm’s spokesman, Mr Steve Omolale Ajulo said: ”Justice S. J. Adah of the Federal High Court, Ikeja Division, had, on April 23, 2012, issued an order restraining the Attorney-General of the Federation, Inspector-General of Police, Managing Director of FAAN and FAAN itself from commencing, continuing and/or completing any actions or permitting the commencement, continuance and/or completion of any actions in respect of taking over possession of and/or interfering with Applicant’s possession of the four-star hotel and the Conference Centre situated at the Murtala Muhammed Airport Terminal Two, Ikeja, under construction pursuant to its letters reference: FAAN/1600/0210213 and FAAN/1600/0210214, both dated April 19, 2012, or any other letter, instrument or instruction whatsoever pending the hearing and determination of the Applicant’s application for interlocutory injunction.

    “The court order, originating motion, affidavit in support, exhibits and the Notice of Arbitration were all served on FAAN and its Managing Director, and received and signed for, on their behalf, by one Mrs. C. Akinola at 11.55a.m on April 24, 2012.”

    He said for FAAN to say it has terminated the projects and taken possession of the land is laughable and a clear disobedience of subsisting court orders. He said: “Nigerians should please ignore them, as they are not saying anything new. Like they themselves admitted in their latest statement, they first issued the statement purportedly terminating the two projects on April 19, 2012.

    “As it is usual with them, they have re-issued the same statement in order to confuse aviation stakeholders and continue to create crises in the sector. Every aviation stakeholder knows that it was the same old statement, issued last year that they have rewritten and presented to the media as a new one to deceive the public. FAAN knows that it cannot terminate the projects because of the court injunction. There are consequences for such an action.”

    Though FAAN has not taken possession of the construction sites of the hotel and conference centre, the authority said it was working hard to ensure that concession agreements negotiated in the future were devoid of controversies.

    Speaking in an interview, the Managing Director of FAAN, Mr George Uriesi, said: “Well, FAAN is now set to do the right things concerning all agreements. We are signing with potential investors and concessionaires. We  are doing what is right for the business.  Any deal that we strike , is done the way it is done elsewhere in the world. And so, the criteria is clear, the business expectations are clear, unlike in the past. We are not doing anything with anybody unless we have evidence from the banks that they are funding the project and the money is there.

    “This will be from the day you sign the agreement and the day you start construction is six months.

    “If any investor does not start within that period, the deal is no longer tenable.The new arrangement is that from the day you start construction we will begin to count and ensure there is compliance with the timeline agreed for the project or concession completion.

    “Now we have very stringent criteria, in accordance with the global airport standard. If the business proposal is sound and could earn money for FAAN, we will sign you on . This is about giving opportunity to every investor.”

    Meanwhile, some industry players, including the former secretary-general of African Airlines Association (AFRAA), Mr Nick Fadugba have cautioned on how airport concessions could best be achieved.

    Fadugba said: “Before we sign deals, whether they are concession agreements on airport terminals, including the General Aviation Terminal, we should ensure that they are in favour of Nigeria. Many deals have been signed that were not properly done.

    “Before we put pen to paper, we must have a solid deal that would be all-beneficiary and all- encompassing. This presents a problem; so I believe the government has to bring in the private sector .

    “The government must ensure it makes the transactions thoroughly planned or agreed; so it is a win-win situation for the government, the country and the private sector.”

    Also, Director of Legal Services, FAAN, Mr Jacob Mark, said: “All the land around the airport anywhere in Nigeria belongs to the Federal Government, not to any individual. When the land is given to any individual or organisation, it is given as lease, under some terms and conditions for a specified number of years that the agreement covers. If the operator of the lease or concession can no longer meet the conditions, it will be terminated.”

  • FAAN to enhance revenue drive at Benin Airport 

    FAAN to enhance revenue drive at Benin Airport 

    Airport Manager of Benin Airport, Mr Sunday Ayodele, has made known plans of the management of the airport to embark on revenue drive in non-aeronautical ventures.

    He explained that the world over, 70 per cent of revenue generation at airports are from non-aeronautical sources.

    He said the airport management would step up its drive to ensure that the revenue base was improved to ensure that passengers get the best from the facilities provided through adequate maintenance.

    “I want to basically pursue rigorously the 70 per cent non-aeronautical service of revenue for this airport and I intend to achieve that”.

    Mr Ayodele said that a new multi-storey car park would be constructed at the airport to accommodate both the car hire service that were displaced and to provide parking space for visitors.”

    He explained that in line with the aerotropolis concept that a four- star hotel would be constructed and business complex would be erected at the airport to cater for those people displaced while the remodelling was going on. He added that the airport woul be a one stop shop where everything could be bought without going to the city.

    The Benin airport manager disclosed that a new airline has applied to commence flight operations into the airport and it will bring the number of operating airlines to four after the return of Associated Aviation that has gone for a major aircraft maintenance check.

    He expressed the hope that the airport fence will be constructed while the runway will be resurfaced at the same time.