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Tag: MMA2

  • MMA2, LAMATA, others win LCCI awards

    JOB spinning firms with demonstrable contribution to local sourcing and backward integration initiatives have led the rest of the pack at the Lagos Chamber of Commerce and Industry (LCCI) Awards.

    The entrepreneurship giants were honoured based on direct and indirect impact on employment  creation, market share output, promotion of Small and Medium Enterprises and investment commitment to encouraging Nigerian products.

    The Murtala Muhammed Airport Two (MMA2) operated by Bi-Courtney Aviation Services clinched the Public Private Partnership award; Lagos Metropolitan Area Transport authority (LAMATA) – infrastructure Project of the Year award; School Media – Innovation & Technology in Education and The Nigerian Stock Exchange (NSE) for the CSR company of the year awards among others.

    President of the Chamber Dr. Nike Akande said the selection of nominees and winners was subjected to painstaking and analytical procedures following submission of entries from various sectors of the economy.

    She urged players in the private sector to infuse more dedication to the business of wealth creating. The government, she said, must fix the power sector, security challenges, foreign exchange, infrastructural and institutional bottlenecks.

    She said: “We are today celebrating enterprises that have excelled in the economy amid that many of them are also indigenous enterprises. The LCCI Commerce & Industry Award would among other things continue to promote healthy competition among corporate organisations as well as competition as it is a major driver of excellence. We recognise that there is no perfect time to make an impact in any system.”

     

     

     

     

  • ‘MMA2 operations have been at a loss’

    ‘MMA2 operations have been at a loss’

    Chief Wale Babalakin, Chairman, of Bi-Courtney Aviation Services Limited (BASL), operators of the Murtala Muhammed Airport Terminal Two (MMA2), addressed the media recently as part of activities marking the 10th anniversary of the terminal. He later spoke with Bukola Aroloye on a wide range of issues, such as the achievements and challenges of managing the terminal, the tenure of its concession and the various court cases between the Federal Airports Authority of Nigeria (FAAN) and BASL, among others. Excerpts:

    What do you consider as the achievements and challenges of operating MMA2 for 10 years?

    We’re marking the 10th anniversary of the Murtala Mohammed Airport Terminal 2 (MMA2) having begun operation on the 7th of May 2007. We have come to celebrate the epoch-making and forward-looking event which is the development of the first privately-funded airport terminal developed for commercial flights in the whole of Africa. Our celebration is essentially a thank you message to all those who have made this event possible and sustained us till today despite a formidable resistance from certain segments of the authorities in Nigeria. The management and staff of Bi-Courtney Aviation Services Limited, operators of MMA2, have worked diligently to ensure that the terminal remains the envy of all terminals in Nigeria today. They have been providing electricity continuously in an unbroken manner in this terminal for 10 years now. Our gratitude to the management is further enhanced by the fact that terminals who have more than 20 times our resources have experienced consistent blackouts while with our modest resources, we have provided consistent electricity. Their effort is a demonstration that if we encourage the right persons in Nigeria, the sky would be the limit of our success. MMA2 has an obvious passenger and airline demand due to its safety, efficiency and technology. Over the years, the terminal has been home to major airlines flying to various destinations in Nigeria. It has handled over 20 million passengers, 400,000 flights and created employment for over 100, 000 people in the past 10 years. The award-winning terminal is also home to retail outlets, shops, restaurants and banks offering a wide range of products. The major challenges we have are the refusal of the Federal Airports Authority of Nigeria (FAAN) to obey our concession agreement and the opposition from different quarters that have stifled the project. MMA2 is a product of courage and tenacity

    Do you consider the efforts put in MMA2 as the first Public-Private Partnership (PPP) in the country worthwhile?

    MMA2 is the pioneer privately-funded airport terminal developed for commercial flights in the whole of Africa. The efforts are worth it, just that the regulatory authorities refused to honour our concession agreement. We call on the regulatory authorities to honour the concession agreement which has been approved by every level of government, including the Presidency and confirmed by all the strata of the courts in Nigeria. This is the only way to reward our pioneering efforts. We are grateful that our eye-opening efforts had led to the upgrading of some airports in Nigeria and the decision of the federal government to concession airports in the country.

    Looking back do you think MMA2 has achieved its optimum in terms of operational capacity, 10 years after?

    FAAN has continued to stifle the development of the airport. The airport had approval for the following: Hotel and Conferencing facilities, Mono Rail, Fuel Hydrant and Power Plant, which were never allowed to materialise. MMA2 is built to process five million passengers per annum. During the dispute with Virgin Nigeria, IATA (International Air Transport Association) inspected our facility and confirmed it was a world class facility. As an IATA–confirmed world class facility, MMA2 possesses an apron capable of handling wide-bodied aircraft, departure and arrival halls with holding capacity for 4,000 passengers, flight information displays and public address systems, 31 check-in counters, common user check in systems, security screening and baggage handling facilities, VIP and Executive Lounges, ease of access for persons with limited mobility, six finger Avio boarding bridges and four bus departure gates serving eight remote aircraft positions, facilities for regional operations, multi–storey parking lot for 800 cars and cargo processing facilities, among others. However, we have not been able to optimise all these facilities because of efforts by the regulatory authorities to frustrate us.

    How have you been coping with maintenance of the facilities?

    We spend millions upon millions of naira monthly to keep MMA2 running. Our revenue has been eroded by about 50 per cent with the redevelopment of GAT by FAAN because the regulator has been busy collecting the revenue due to us from that terminal, which is part of our concession. So, it’s not been easy coping with maintaining our state-of-the-art facilities at MMA2.

    What is the tenure of the concession agreement?

    The concession agreement consists of three documents, which are: the original agreement dated 24th of April, 2003, supplementary concession agreement dated 26th June 2004, and after reviewing the whole situation, FAAN offered a 36-year concession to BCL on 12th October, 2006 and BCL accepted on 13th October, 2006. This resulted in the addendum dated 2nd February, 2007. The concession period was extended from 12 years to 36 years because FAAN’s original design for the terminal was a large warehouse like Abuja Domestic Terminal. A visit to Cape Town’s domestic terminal in South Africa impressed us immensely.

    FAAN’s financial advisers, First County Consultants, recommended a concession period of 33 years to enable Bi-Courtney repay the project loans, cover operating expenses, maintain facilities to a good standard during the concession period, recoup its equity investment, make a profit, and “walk away “from the investment at the end of the concession period (hand over MMA2 to FAAN). On 12th October, 2006, FAAN wrote to offer Bi-Courtney a concession period of 36 years – an amendment provided for by Clause 2.8 of the Agreement. On 13th October, 2006, BCL wrote to accept FAAN’s offer.

    Are you convinced that the PPP arrangement in Nigeria can ever evolve to an acceptable international level?

    We welcome the idea of concession as far as it is done properly and in accordance with the rule of law. Nigeria must respect agreements legally entered into with investors. Nigeria must respect court judgements to enable its PPP evolve to an acceptable international standard. For example, a court in a state in the U.S. gave an order suspending Trump’s travel ban and within hours, the order was obeyed.

    What is the current position on the ownership of GAT?

    GAT stands for General Aviation Terminal. Every airport has a general aviation terminal which is essentially for the use of private aircraft and non-scheduled domestic flights. But, FAAN went ahead and redeveloped GAT in contravention of our concession agreement. And today, two major airlines are operating from the GAT, paying our revenue to FAAN. The GAT could have continued to operate without infringing on the rights of Bi-Courtney under the BOT Concession Agreement provided its services did not include scheduled domestic flights. Private jets, charter flights, helicopter services are all integral aspects of GAT services. Under the concession agreement, our rights as the Concessionaire include but not limited to design, develop, finance, construct and manage an aviation domestic terminal within Lagos State; all scheduled domestic flights in and out of FAAN’s airports in Lagos State are to be operated from our terminal (MMA2) and FAAN would not cause the erection or development of a shopping mall or any facility capable of impeding and/or threatening Bi-Courtney’s revenue generation. But, with the redevelopment of GAT, FAAN has become our competitor instead of regulator. FAAN has violated the Exclusivity Clause in our agreement.

    What has been the effect of the various violations on Bi-Courtney’s obligations to its creditors?

    The loss of over 50 per cent of passenger traffic to FAAN’s GAT and over 50 per cent of available revenue from passenger flights, the cumulative (actual) operating losses of billions of naira from 2007 to date, business losses of billions of naira from uncompleted/partially completed projects, totaling several billions of naira in business losses since 2007 to date have all impacted negatively on our terminal, leading to our inability to meet loan repayment obligations to banks from the earnings of MMA2. Based on the rights conferred on Bi-Courtney by the concession agreement, we raised funds privately and borrowed money from banks to build the terminal, but today, the loss of a larger part of our revenue through FAAN’s activities has led to our inability to meet financial obligations to the agency under the concession agreement. Our business is severely threatened!

    Is there a way forward over the various court cases and judgements over the concession?

    We are seeking the assistance of all and sundry for the payment of the N200billion owed to Bi-Courtney Aviation Services Limited by the federal government of Nigeria. As far back as 2012, the Federal High Court awarded damages of N132 billion to Bi-Courtney Limited. Six appeals against the judgment in the Court of Appeal have been dismissed. Even the appeal to the Supreme Court by Arik Air through Ojemaie Holdings was also dismissed. No nation can truly achieve its potential if it treats its dynamic citizens this way.

    Given your unpleasant experience thus far, would Bi-Courtney still consider taking up any PPP contracts in the country in the future?

    Of course, we welcome the idea of concessioning, if it is done properly and in accordance with the rule of law.

  • MMA2… 10 years against all odds

    Bi-Courtney Aviation Services Limited (BASL), operators of the Murtala Muhammed Airport Terminal 2 (MMA2), has shown demonstrable commitment to the development of aviation infrastructure. Despite inconsistent government policies and lapses on the part of regulatory authorities, the terminal has continued to be adjudged Nigeria’s best in terms of facilities.

    Before MMA2 came into existence, the idea of a domestic airport to an average Nigerian was that of dilapidated facilities. Thanks to a fire incident at the then domestic wing of the Murtala Muhammed International Airport, the journey to a modern airport terminal began. Ten years down the line, the terminal, which was built based on a Public Private Partnership agreement, remains the talk of the town. The operators have proven to be credible, reliable and resilient partners. They have consistently set and maintained high standards in terminal operations.

    Since the exclusively privately-funded airport added another feather to its cap with the inauguration of the Common User Passenger Processing System (CUPPS) and other technology innovations in these climes, passengers have been experiencing a faster, safer and more customer-friendly way to board flights.

    Services such as e-check in, automated e-gates and a full Baggage Reconciliation System (BRS), which were only enjoyed abroad, are now being experienced at MMA2. MMA2 is in fact still the only terminal in Nigeria that offers an automated baggage reconciliation system as prescribed by the International Civil Aviation Organisation (ICAO).

    Passengers travelling without bags can use the self-check-in kiosks. The e-gates make it virtually impossible for an unauthorised person to enter the boarding zone. The system is the same as installed in major international airports like Charles De Gaulle in Paris and Bangkok International Airport, as well as over 200 airports in the world.

    With a technology known as PAXTRACK, the airport can also, among others, analyse peak periods and is thus better placed to plan. This facility also makes it easy to locate a passenger within the terminal and enables boarding agents to have a better on-time performance.

    During the inauguration of the BRS and Self-Check-In System, former Aviation Minister Osita Chidoka was so impressed with the facilities that he declared MMA2 “a template that must be used to grow the aviation sector… MMA2 has offered the template about how government should go about the issue of the operation of airports in the country”.

    But for the doggedness of the leadership of Bi-Courtney Aviation Services Limited (BASL), there would be no MMA2 again today. Inconsistent government policies, regulatory authorities’ lapses and so many other challenges have reared their heads in the last 10 years, threatening to turn the airport into another of the airstrips called airports in some states of the federation.

    The major problem has been the interpretation of the concession agreement. BASL continues to insist, supported by various court judgements, that going by the concession agreement, all domestic flights ought to emanate from its terminal and that the General Aviation Terminal (GAT) is supposed to be managed by it. But successive governments have not honoured this agreement. To cap this, even while GAT continues to be managed by FAAN, the passenger service charge due to BASL under the agreement as part of the revenue stream for recouping its investment has not been paid for 10 years. As at today, FAAN owes BASL N200 billion in damages and the interest will continue to accrue until the agency pays up. Even the approval for regional flights from the terminal remains frustrated and is yet to see the light of day.

    It was this refusal to respect agreements that made the Senate to threaten not to support plans to concession four international airports in the country. The lawmakers noted the need for government to probe the controversy trailing the concession of MMA2 to BASL and to ensure resolution of this issue for credibility sake, before any proposal to consider further concessions can be approved.

    Decrying the refusal of the government to honour the terms of its agreement with BASL, chairman, Senate Committee on Privatisation, Senator Ben Murray-Bruce, said it could discourage investors with the requisite experience from bidding for the proposed concession of the Lagos, Abuja, Port Harcourt and Kano international airports.

    “We won’t allow the four airports to be concessioned when the crisis over the concession of the MMA2 has not been settled. It has created a bad image for the country. You have to abide by the agreements that you sign. You can’t get the best (private sector firms) because they are frightened and will not come, knowing that when agreements are signed here, we don’t honour the terms,” Murray-Bruce said.

    For instance, the Build, Operate and Transfer (BOT) Agreement between the government and BASL includes an exclusivity clause, which gives the company the sole right to operate scheduled commercial domestic and sub-regional flights out of Lagos, to enable it recoup its investments. Murray-Bruce noted how the Federal Government frustrated the deal by also giving the Federal Airports Authority of Nigeria (FAAN) the permit to operate the General aviation Terminal (GAT). The government has also not allowed the company to operate regional or sub-regional flights out of the MMA2.

    “The lack of respect for agreements in the sector goes beyond BASL. Maevis Nigeria, a firm which entered into a concession agreement with FAAN on October 31, 2007, for the supply of Airport Operations Management System (AOMS) to the Murtala Muhammed International Airport (MMIA), Ikeja; Nnamdi Azikiwe International Airport (NAIA), Abuja; Mallam Aminu Kano Airport and the Port Harcourt Airport, also got a dose of the bad pill. The contract was to last for 10 years and was renewable every five years subject to satisfactory performance. Five years into the agreement, FAAN terminated it, saying it had lost N17 billion due to Maevis’ alleged incompetence and replaced the firm with Societe International Telecommunication Aeronautiques (SITA).

    Maevis sought refuge in court, where it accused FAAN of forcibly chasing its men out of the airports. It said it had committed over N5 billion into the project. Two years ago, Justice Ibrahim Buba of the Federal High Court sitting in Lagos asked SITA to pay Maevis N5 billion. He also invalidated SITA’s contract with FAAN.

    The case of Sir Richard Branson, the man who brought the Virgin brand to Nigeria, is another sad example. He gave the Federal Government 49 per cent stake in the booming airline and owned 51 percent. Eleven years after, this is what he had to say about his experience with government officials: “The details of the doomed attempts to crack the Nigerian market in the 2000s is better imagined. We put together a very good airline, the first airline in West Africa that was ever IOSA/IATA operational safety audit-accredited, but unfortunately it got tied down to the politics of the country. We led the airline for 11 years.

    “We fought daily battle against government agents who wanted to daily make fortune from us, politicians who saw the government’s 49 per cent as a meal (ticket) to seek all kinds of favour, watchdogs (regulatory bodies) that didn’t know what to do and were persistently asking for bribes at any point. Nigerian people are generally nice but the politicians are very insane. That may be irony because the people make up the politicians.

    BASL continues to fulfil its obligations to its partners and stakeholders, despite the challenges of the environment. As MMA2 celebrates its 10th anniversary, it is hoped that the government would now honour the terms of its agreement with the terminal’s operators and respect the subsisting court judgements. This would encourage the firm to continue to be a pace setter in the aviation industry and attract investors to our country.

     

    • Ms Olaosun is Media Manager with The Resort Group, Lagos.

  • MMA2 at 10: Lessons for private investors

    The 16th American President, Abraham Lincoln, once said, “It often requires more courage to dare to do right than to fear to do wrong.” This month, Murtala Muhammed Airport Terminal Two (MMA2), Lagos, which is a product of the courage to dare to do right, will be 10 years old.

    This is significant in a way because what started in a modest way in May 2007 has now become a benchmark for measuring how an airport terminal should run. No doubt, the edifice, the first successful Public-Private Partnership (PPP) in the country, has changed the face of the aviation industry in this part of the world. MMA2 has positively affected the psyche of all aviation industry stakeholders with the doggedness, perseverance and the zeal to overcome challenges by its manager. The terminal has disabused the minds of the stakeholders of the usually etched graphics of derelict airport terminals scattered all over the land with dilapidated facilities, often overheated and cloaked in darkness.

    The good thing is that 10 years down the line, MMA2, with its Multi-Storey Car Park (MSCP) and the facilities therein, still glitters in the aviation landscape as if it was built yesterday. Despite all the dream killer challenges, engineered by those who wanted to kill the MMA2 dream from inception, its operator, Bi-Courtney Aviation Services Limited (BASL), has since taken the odds as the tonic needed to “still do it”. According to the words of Elon Musk, “If something is important enough, even if the odds are against you, you should still do it.” That the terminal is still standing today like a solid rock in the midst of an earthquake-pummelled environment is a big plus to its operator, which toils day and night to “still do it”.

    One decade on, the success story of MMA2 is in tandem with the words of the British orator, author and two-time Prime Minister (1940–45) and (1951–55), Winston Churchill, who said, “Success is not final; failure is not fatal: It is the courage to continue that counts.” Therefore, the courage and the resilience to make MMA2 work in the face of stiff opposition from vested interests is what counts to BASL and this is a lesson for private investors. BASL’s attitude is perhaps constantly inspired by the saying of the great inspirational speaker, Will Rogers that, “Even if you are on the right track, you will get run over if you just sit there.”

    Ten aviation ministers have superintended over MMA2 in 10 years. While a few of them respected the concession agreement the ministry signed with BASL, majority of them did everything to strangulate the business: another big lesson for private investors.

    Going down memory lane, Dr. (Mrs.) Kema Chikwe (2001-2003) as Aviation Minister signed the MMA2 concession agreement between BASL and the Federal Government and did everything to ensure that the project got off the ground; Mallam Isa Yuguda (May 2003-June 2005) under whose tenure the structure of MMA2 took shape, was instrumental to the invitation of KPMG, an international consulting firm that recommended a concession period of 36 years; Prof. Babalola Borishade (now late) (July 2005-November 2006), through the Federal Airports Authority of Nigeria (FAAN) offered BASL 36 years as the concession period, which the company accepted; and Femi Fani-Kayode (November 2006-May 2007) was Aviation Minister when MMA2 was inaugurated by former President Olusegun Obasanjo in May 2007.

    Other ministers were: Felix Hyatt (June 2007-October 2008), appointed a Minister of State (Aviation) by the late former President Umar Yar’Adua, who could really not do much because the aviation unions and other interest groups overwhelmed him in a bid to ensure the death of MMA2. And under Hyatt, FAAN began breaching the concession agreement, while some airlines ordered to move their operations to MMA2 from the International Wing refused to do so; Babatunde Omotoba (December 2007-March 2010), who was advised by the then Attorney-General of the Federation, Michael Kaase Andoakaa (SAN), to hand over the General Aviation Terminal (GAT) to Bi-Courtney as part of the Concession Agreement, which Omotoba failed to do; Mrs. Fidelia Akuabata Njeze (April 2010 – May 2011), who was urged by the Airline Operators of Nigeria (AON) to allow regional flight operations take place at MMA2, as part of the Concession Agreement, and who never yielded; Stella Oduah (July 2011-February 2014), who led the greatest assault on the enterprise called MMA2 and the Concession Agreement. Oduah was vehement in her opposition to anything MMA2 and did everything to cripple the terminal and take over its operations, but failed. She was succeeded by the suave Chief Osita Chidoka (July 2014 – May 2015), who on the other hand did everything within his powers to ensure that the provisions of the concession agreement were obeyed to the letter. Chidoka also declared MMA2 the Best Terminal in Nigeria, which unsettled so many vested interests, inaugurated MMA2’s Common User Passenger Processing System (CUPPS) and most importantly, approved the take-off of regional flight operations for the terminal, which agencies in the aviation industry, especially FAAN, did everything to scuttle; and the incumbent, Senator Hadi Sirika (November 2015-to date), who has, so far been unsupportive of the MMA2 Concession Agreement.

    All the ministers have, nonetheless, contributed either positively or negatively to what makes MMA2 stand solid today. But the endurance of the operator for the past one decade is what further makes the terminal tick.

    The ministers’ various contributions and those of FAAN were a reflection of what it takes to do business with the government, even when the administration under which they served had good intentions. Other private investors and prospective ones need to learn a lesson or two from this experience. Besides BASL’s experiences in the hands of these officials, the bitter experiences of politician and businessman, Chief Harry Akande and the Chairman of Virgin Atlantic Group, Sir Richard Branson, among others, who were shoved  aside after investing their billions of naira, come in handy here. They are still licking their wounds till date.

    Indeed, an angry Branson had this to say of his experience in the hands of government officials: “We fought a daily battle against government agents who wanted to make fortune from us, politicians who saw the government’s 49 per cent as a meal (ticket) to seek all kinds of favour, watchdogs (regulatory bodies) that didn’t know what to do and were persistently asking for bribes at any point. Nigerian people are generally nice but the politicians are very insane. That may be an irony because the people make up the politicians.

    “But those politicians are selfish. We did make N3billion for the Federal Government of Nigeria during the joint venture, realising that the government didn’t bring (anything) to the table/partnership except dubious debts by the previous carrier, Nigeria Airways. The joint venture should have been the biggest African carrier by now if the partnership was allowed to grow, but the politicians killed it. Nigeria is a country we shall never consider to doing business again.”

    Despite all this, “MMA2”, according to the chairman of BASL, Dr. Wale Babalakin (SAN) “represents considerable cerebral input into very modest resources.” Some food for thought and lessons, lessons all the way.

     

    • Omolale is Head, Corporate Communications, BASL.

  • The burden of MMA2

    Murtala Muhammed Airport Terminal Two (MMA2), Lagos, a facility providing critical services to the aviation sector for which its operator – Bi-Courtney Aviation Services Limited (BASL) – has either been on the receiving end of some criticisms or much accolades in almost a decade. MMA2 is the first successful Design, Build, Operate and Transfer (DBOT) project of its kind in the country. It was designated as the only privately-managed airport terminal approved to process local passenger traffic out of Lagos State by the Federal Airports Authority of Nigeria (FAAN). However, despite the many booby-traps placed on its path, BASL is displaying impressive managerial and operational skills on a par with any world class operator managing a terminal like MMA2.

    It is noteworthy that BASL embraced the challenges fully and stands ready to do the needful in significant ways to ensure that change is brought to the aviation sector in Nigeria. The beauty of this is manifested in the fact that the company as a pioneer has been making progress in the management of MMA2 over the years, to the admiration of those who understand the intricacies of trying to run a business where regulated service delivery has traditionally been managed by stone-age civil service mentality, who will do everything within their power to frustrate the private investor. Retrogressive and unpatriotic officials, who clearly do not understand that the private sector is the engine room of growth in any economy and that government is only an enabler, have continued their repeated attempts to kill the dream of Public-Privatisation Participation (PPP) policy. Even the most ardent detractors must commend the never-say-die spirit and patriotic zeal of BASL, in an environment where many would have given up long ago, despite the huge investments already made.

    At MMA2, Bi-Courtney has made an unimaginable sacrifice trying to provide the required services to the public and has only been able to achieve this through the tenacity of purpose and the steadfastness of the investor, who refuses to bow to the mediocrity and unwarranted injustice being perpetrated against his business concerns. One refers to those who should ordinarily join the investor in the dream to lift this country to greater heights by encouraging similar investments in various sectors of the economy, especially in a country with such severe infrastructure deficits as ours.

    Conversely, it is a big shame that after several years, FAAN cannot boast of one terminal that provides comparable comfort and meets the expectations of passengers in Nigeria. Almost all its airport terminals are already near-derelict, despite the enormous resources expended and at the disposal of the agency. In stark contrast, those managing MMA2 over the past nine years have continued to prove that Nigeria is not all about negativity and that Nigerians too, especially in the private sector, can do things better.

    Even with the hostile environment in which it is forced to operate, Bi-Courtney ensures that the facilities in the terminal constantly undergo timely maintenance and renewal. For instance, five escalators and nine elevators were upgraded recently, while uninterrupted power supply for nine years, clean environment, smooth passenger facilitation and security camera systems, among several others, are all the things that make MMA2 different from other terminals. What BASL loses in profit and fulfilment of obligations to its creditors and to the provisions of the concession agreement, is what the aviation community in the country is enjoying in terms of a safe, secure and functional terminal facility. And by extension, BASL has unequivocally added value to the image of the country in the comity of nations in its own little way, and it is proud to contribute its quota to nation-building.

    The huge loss in revenue, which is even worse today, is further accentuated by the desire of BASL to maintain the Nigerian Civil Aviation Authority/International Civil Aviation Organisation (NCAA/ICAO) standards and regulations, which require huge expenditure outlay regardless of the economic recession. This is made worse because FAAN bluntly refused to obey the terms and letters of the concession agreement it signed with Bi-Courtney on MMA2, despite subsisting court judgements. The agency has effectively divided revenues due to the concessionaire into two, thus creating unnecessary duplication of activities, leading to a situation where airlines are now immensely indebted to airport operators. What an anomaly when the regulator becomes the competitor and is doing everything to pull down a partner!

    As a business, it is astonishing how the company continues to ensure that services are constantly provided. Losses since 2007 to date are colossal. The combined losses continue to dampen the firm’s spirit and have frustrated its attempts to service its huge loans borrowed from a consortium of banks and even to meet its concession obligations to FAAN. BASL is constantly frustrated that associated projects that would have enhanced its revenue base, such as the Hotel and Conference Centre, power plant and the mono rail, have not come to fruition, as FAAN continues to pile on the blockage.

    Meanwhile, FAAN, though relentless in its bid to thwart the MMA2 concession, is nonetheless busy demanding for its concession fees. The agency keeps the cost of operations up in order to ensure that BASL is frustrated from rendering the required services to the public through MMA2. This is a calculated attempt on the part of the authority to show up the terminal enterprise as a failure. Ironically, over the last few years, while FAAN has refused to allow BASL to generate the required revenues, it has continued to thrive on the revenues it is illegally earning from the operations of the General Aviation Terminal (GAT) that is statutorily supposed to be part of the Bi-Courtney concession. Any wonder then why FAAN continues to ignore the court judgements in favour of Bi-Courtney, in blatant denial in a country under the rule of law.

    The first three years of operation of MMA2 from May 2007 were the most critical and traumatic. During that time, Bi-Courtney spent billions of naira of its own money to provide additional facilities to ensure that the terminal remained open to the flying public. Were it not for this huge sacrifice, MMA2 would have been shut down as soon as it was inaugurated.

    This has been the major dilemma of the terminal operator and may be the major challenge of the PPP initiative of this government, as those who are making spirited attempts to turn the success story of MMA2 to failure, those who are branding Bi-Courtney the devil, are still very much around to frustrate any private sector initiative in the country’s aviation sector. Unless and until something is done to change their mind-set/attitude and to convince prospective investors that they would be given free hand to operate, the proposed concession of four of the country’s airports may suffer the same hindrance that has beset MMA2.

    • Omolale is the Head, Corporate Communications of BASL.
  • MMA2: Clogs in the wheel

    MMA2: Clogs in the wheel

    It started with a fire incident, on May 10, 2000. The local wing of the Murtala Muhammed Airport was completely razed at a time when government could barely raise the funds needed for infrastructural development. The Federal Government decided to explore a Design, Build, Operate and Transfer (DBOT) scheme. On August 7, 2000, the Ministry of Aviation and the Federal Airport Authority of Nigeria (FAAN) advertised for investors in the scheme. At the end of a competitive bidding process, the concession was granted to Sanderton Ventures. Twelve months later, Sanderton was unable to commence construction. And as provided for in the guidelines, Bi-Courtney Aviation Services Limited (BASL) was invited on board as the reserved bidder. The firm thus executed the concession agreement with the Federal Government and FAAN in April 2003.

    One part of the agreement, which has remained unresolved till date, is the ownership of the General Aviation Terminal (GAT). Despite the fact that FAAN issued a letter handing it over to Bi-Courtney, the agency held on to GAT, something the courts have frowned upon. The GAT matter remains a knotty issue, just as some other aspects of the concession agreement, such as the original design’s provision for hotel and conferencing facilities, a mono rail, fuel hydrant and power plant. BASL says these were stifled by FAAN. All these shortcomings led the judiciary to award N132bn against FAAN as damages payable to BASL up till 2012. FAAN is yet to pay the money, and interest continues to accrue.

    Despite these challenges, the MMA2 terminal remains, as former Aviation Minister Osita Chidoka attested, “the best terminal in Nigeria”. The then minister had hailed the terminal for its world class facilities, noting that: “MMA2 has offered the template about how government should go about the issue of the operation of airports in the country.”

    He said further: “We want to believe that the improvement in passenger’s experience in MMA2, the continuous quest for improvement, the continuous quest for excellence is sustained. This continuous improvement is something I would like other managers of airports in Nigeria to begin to mimic. If they cannot truly capture it – all they need to do is just ‘copy and paste’ since the template is already there.”

    The evidence is there for all to see. At MMA2, which BASL has operated for over eight years, passengers are offered the Common User Passenger Processing System (CUPPS) and other technology innovations which provide the best of travel experience. It is the only airport terminal in Nigeria to “have solely installed the latest version of a computer system that gives passengers and terminal users a fast, secure, safe and customer-friendly way to board a flight”. Neither the Murtala Muhammed International Airport in Lagos, nor the Nnamdi Azikiwe International Airport, Abuja, has these services.

    Facilities such as e-check in, automatic e-gates and a full Baggage Reconciliation System, which Nigerians only enjoyed abroad, have been domesticated at MMA2. To achieve this, the airport had to change all the check-in counters and scales. It also increased their number from 31 to 45. The design and manufacturing was done by the same company servicing Amsterdam Schiphol and many other major international airports. The computers at the check-in desks were also changed and each computer is connected to a brand new boarding pass printer and a new baggage tag printer.

    To accelerate the check-in process, each airline operating from MMA2 has a ticket barcode scanner to call up tickets without any keyboard input.

    For passengers travelling without luggage, BASL installed four self-check-in kiosks. It also increased security features at MMA2 by installing e-gates before the security screening point, making it virtually impossible for an unauthorised person to enter the boarding zone. Each gate is equipped with a boarding pass scanner and brand new manifest printers.

    A technology known as PAXTRACK has also been installed.  With this, the airport can, among other things, analyse the peak periods and is thus better placed to plan. This facility also makes it easy to locate a passenger within the terminal and enable the boarding agent to have a better on-time performance.

    One major benefit of concession in the aviation sector is technology transfer. For the new facilities to be installed and operated successfully, BASL workers were sent abroad for training. The manufacturers also came to Lagos to train about 300 staffers of airlines, BASL and ground handlers. About 200 of the airport’s security staff have obtained ICAO Certificate in Aviation Security.

    Observers believe that the MMA2 story would have turned out even better had government complied with contractual agreements and court judgements, thus allowing MMA2 to continue its development and commence regional flights for which there is already approval.

    “We have an agreement on this issue and have spent a fortune in complying with the requirements,” said BASL.

    Now that the government is keen on concessioning four of its airports, the time to right the wrongs regarding the concession agreement with Bi-Courtney is certainly now. Doing otherwise would scare away those same investors government hopes to attract.

     

    • Odubena writes from Lagos.

  • MMA2 gets mobile application

    TO provide airport users world-class travel experience, Bi-Courtney Aviation Services Limited (BASL), operator of the Murtala Muhammed Airport Terminal 2 (MMA2), has launched a mobile application.

    MMA2 is the first terminal to launch a mobile application with features, which enable users to book flights, get flight information, track flights and access shops and quick service outlets at the terminal, among others.

    Its Chief Executive Officer, Captain Jari Williams, said in a statement: “The mobile app is free and available for download on Google play store and App store. This is just our way of saying MMA2 is more than a terminal. This app is guaranteed to make the experience of travellers and visitors to the terminal much easier.”

    “For instance, the app’s live flight information gives detailed status on all flights departing and arriving MMA2 with the added advantage of flights tracking.”

    The statement said to encourage travellers to download the app, BASL and Dana Air, one of the major airlines operating from MMA2, had begun a promo for users to book flight via the app. The promo is running on the social media sites of the companies.

    It said further that winners would emerge monthly, adding that the winners, who would be allowed to send multiple entries, have a chance to grab return tickets of Dana Air to any destination in Nigeria and other consolation prizes.

    The deployment of mobile application at MMA 2, is part of efforts prescribed by the global industry regulator – International Air Transport Association ( IATA) to make air travel seamless.

    IATA describes such technology as simplifying the business of air travel.

    Meanwhile, IATA expects 7.2 billion passengers to travel in 2035, a near doubling of the 3.8 billion air travelers in 2016.

    The prediction, according to investigations, is based on a 3.7percent annual Compound Average Growth Rate (CAGR), noted in the release of the latest update to the association’s 20-year Air Passenger Forecast.

    The five fastest-growing markets,  according to the forecast in terms of additional passengers per year, over the period, would be China 817 million new passengers for a total of 1.3 billion. In the US, 484 million new passengers  are projected for a total of 1.1 billion.

    In India, 322 million new passengers  are projected for a total of 442 million.

    In  Indonesia, 135 million new passengers  are projected for a total of 242 million.

    In Vietnam, 112 million new passengers  are projected for a total of 150 million.

  • N12.5bn indebtedness: Arik owes us not FAAN – Bi-Courtney

    N12.5bn indebtedness: Arik owes us not FAAN – Bi-Courtney

    Bi-Courtney Aviation Services Ltd (BASL), operator of the Murtala Muhammed Airport Two (MMA2), Lagos, on Sunday claimed that Arik Air was not indebted to the Federal Airports Authority of Nigeria (FAAN), but to BASL.

    Bi-Courtney made the claim in a statement signed by its Chief Operations Officer, Ms Adebisi Awoniyi, which was obtained by the News Agency of Nigeria (NAN) in Lagos.

    NAN reports that Arik Air operations at the General Aviation Terminal (GAT) were disrupted on April 20 by aviation unions and some FAAN workers, over its alleged N12.5 billion indebtedness to the agency.

    However, the statement claimed that the alleged N12.5 billion debt was part of Bi-Courtney’s legitimate revenue that FAAN had continued to appropriate, despite several legal pronouncements.

    It said: “We want the public, particularly relevant stakeholders, to note that the country’s law recognises Bi-Courtney as the genuine owner of GAT.

    “This thus makes FAAN’s continuous operation of the terminal illegal and a clear violation of the laws of the Federal Republic of Nigeria. FAAN, however, continues to defy the laws of the land.

    “It has openly and recklessly denied our company 60 per cent of its revenue by its continuous illegal operation of the GAT as a competing terminal to MMA2, even after an Arbitration Panel, a Court of Law and an Appeal Court had ruled in our favour.”

    The statement said consequently, all revenues being collected by FAAN at the GAT, including the contentious N12.5 billion, belonged to Bi-Courtney.

    It said: “The implication of this is that both FAAN and Arik Air are indeed fighting over monies that lawfully belong to Bi-Courtney.

    “We also wish to categorically confirm that all the airlines operating at the GAT are actively involved in FAAN’s act of illegality, because they are all aware of the position of the law in respect of the ownership of the terminal.”

    According to the statement, particular judgments confirming the owner of GAT as Bi-Courtney include the 2009 ruling of Justice J. Chikere of the Abuja Federal High Court in Suit No. FHC/ABJ/CJ/50/2009.

    It said the same judgment was reaffirmed in a ruling on February 13, 2013 by Justice A.R. Mohammed of the same court, in a suit filed by FAAN and the Ministry of Aviation, asking the court to declare that they were not bound by the ruling of Chikere.

    The statement said Mohammed, in his ruling, had stated categorically that by suing the Attorney-General of the Federation, Bi-Courtney’s suit was binding on all agencies of the Federal Government.

  • Panel on airport security backs MMA2 for regional operations

    The Ministerial Committee on Airport Security has affirmed its support for the commencement of regional operations at the Murtala Muhaammed Airport Two (MMA2), Lagos.

    The Air Commodore H. Tukur-led committee, set up by the Federal Government to assess the security situation in all airports, also expressed satisfaction with the level of security at the terminal, operated by Bi-Courtney Services Limited.

    After its visit to the MMA2, last Thursday, it observed that the facilities at the airport are comparable to any other top airport around the world.

    The committee said nothing should have warranted further delay in the commencement of international operations at the terminal, judging by the facilities available for use.

    The committee was received by the Chief Operations Officer, Ms. Adebisi Awoniyi, the Chief Security Officer, Mr. Olayinka Olatunji and other top management members of Bi-Courtney.

    A member of the committee, Mr.Akin Olateru, commended the efforts by the terminal operator to enhance passenger facilitation.

    “Due to the fact that the regional operation comes under facilitation, the committee is ready to take it up with the relevant authorities, he said”

    Areas visited by the committee during the assessment tour include: The ticketing hall, regional arrival and departure areas, the screening point and other security formations, the car hire area, drop-off zone, the self-check-in kiosks and the electronic screening machines.

    Addressing the committee, Mrs Awoniyi commended the Federal Government’s initiative, stressing that airport security and safety are key areas that the company had never taken for granted. She said the company is undertaking an extensive upgrade of CCTV camera for the terminal, due to the dynamic nature of airport operations and the introduction of new technology.

    She also told the committee that approval for regional operations at MMA2 was granted by former Minister of Aviation Osita Chidoka in May 2015 and that Bi-Courtney had invested over N200m in getting the terminal ready for the commencement of the operations.

    She added: “All relevantsecurity agencies,including Customs, SSS, Immigration, NDLEA and others have their offices ready for the regional operations, while some of them have, in fact, deployed personnel in the terminal. Some have also installed their scanning equipment and are ready for the commencement of operations.”

    “The truth is, starting regional flight operations at MMA2 is a win-win situation for all the parties involved. It is particularly beneficial for the airlines operating from MMA2 and Nigerians as a whole. The airlines are groaning under the weight of additional cost of having to use the international terminal to operate such flights. These airlines use the same aircrafts for their domesticas well as their regional operations, so consolidating the two operations in one terminal will ensure drastic reduction in their operating cost.”

  • MMA2 is ready for regional operations, says Bi-Courtney

    Bi-Courtney Aviation Services Limited (BASL), operator of the Murtala Muhammed Airport Two (MMA2), has faulted the claims in some quarters that insufficient space for parking aircraft is delaying the commencement of international operations at its terminal.

    BASL said it has obtained authorisation from the Federal Airports Authority of Nigeria (FAAN) to begin regional operations at MMA2 as set out in the concession agreement between the two.

    The approval, however, requires regulatory approval from the Nigerian Civil Aviation Authority (NCAA) before commencing operations.

    BASL in a statement said the delay in obtaining NCAA’s approval has nothing to do with the size of its apron or any other operational issue.It  explained that various teams of inspectors from NCAA and other statutory agencies, including the Department of State Security (DSS), Nigerian Immigration Service (NIS), National Drug Law Enforcement Agency (NDLEA), Nigerian Customs Service (NCS) and the Port Health Service supervised its preparation for the international operations to ensure that it complied with all the requirements.

    It noted that all these agencies have also deployed their personnel at the terminal in readiness for the commencement of international operations, while the interior ministry had already accorded MMA2 the status of an entry point into the country.

    The statement reads: “We don’t have any issue with parking space for aircraft. That is a false allegation. The Federal Airports Authority of Nigeria (FAAN) has given us the authorisation to commence regional operations, but we still need other approvals from the Nigerian Civil Aviation Authority (NCAA).

    “And we have complied with all the requirements set by NCAA. These areas cover safety, security and operations audit. We have invested huge sum for the commencement of the regional operations for the past six months. We have signed the agreement with FAAN since last year.”

    Also reacting to the reported plans by an airline to move its operations from the terminal to the General Aviation Terminal, which is being run by FAAN, due to purported high charges at MMA2, the company denied that any airline was planning to relocate from its terminal.