Ogungbangbe Lauds FG On Ibadan Airport Upgrade, Hammers On Benefits, Survival of Aviation Business

By ISAAC OLUSESI

Stakeholders in the aviation business have been asked to participate actively in the industry, staying informed about trends in the relationships with airports and airlines, regulatory changes, emerging technologies, and risk assessments with mitigation strategies to ensure business survival. 

Dr Thomas Olaleye Ogungbangbe, a major stakeholder in the aviation industry gave the advice in Lagos, yesterday, on the chances of business survival, following The Samuel Ladoke Akintola Airport, Ibadan Oyo State, now sealed. 

The pioneer and current Chairman of Aviation Fuel Marketers Association of Nigeria (AFMAN) noted, "the airport is being upgraded to International Airport and that’s the reason for shut down. After the upgrade, international airlines and passengers will embark from Ibadan which will serve as a credible alternate airfield to the Murtala Mohammed International Airport, Lagos. This ultimately will return the airfield to a boisterous business arena."

The Ibadan airport runway is closed by Nigeria Airspace Management Agency (NAMA), the airline operations suspended by the International Civil Aviation Organization (ICAO) regulations, and the airport temporarily shut by the Federal Airport Authority of Nigeria (FAAN) to allow critically important improvements and remodelings of the airport's infrastructure, facilities and services for upgrade to international standards.

Ogungbangbe acknowledged that the transitory closure of the Ibadan airport would cause a stop-gap disruption to the business of jet fuel supplies, and he directed the fuel jet marketers to fall back on operational continuity plans for business sustainability during the extensive upgrade works on the airport.

He added that the AFMAN business corporates could diversify customer base for alternative jet fuel supply routes, transportation and logistics, and consider financing options by managing cash flows to support setting up temporary fuel storage, handling facilities and transportation infrastructure during the upgrade works.

The AFMAN head who's also the Chairman and Chief Executive Officer (CEO) of CITA ENERGIES, lauded the federal government's approval of the provisional closure of the Ibadan airport for comprehensive upgrade, describing the action, "a legitimacy in public trust and national interest as the momentary closure of the airport met regulatory requirements and standards." 

He envisaged, the modernization of the airport could be costly to require significant investment in the wide-ranging improvements to the airport infrastructure, systems and processes, and he urged strict budget compliance and adherence to resource plans for smooth renovations of the airport and timely completion of the all-encompassing work.

Expressing deep concerns for the survival of the medium and small sized jet fuel suppliers, faced with liquidity challenges and struggles to withstand consequential effects of fuel shortages, reduced demands, price volatility and difficulty to adapt to changed market conditions due to the airport closure for pervasive upgrade, Ogungbangbe said, "I long to see jet fuel marketers taking proactive steps at all times to mitigate risks for sustainability."

Continuing, he stated that "renovations on an airport in developing world, can pose significant challenges of reduced airport operations and corresponding potential disruption to jet fuel distribution network in terms of decreased demands for jet fuel, and price volatility. In the circumstances, the mid-sized or small scale jet fuel suppliers could seek collaboration with the super-sized jet fuel suppliers. The huge fuel suppliers have large resources, strong financial chests, diversified operations and offer efficient services to multiple airlines and airports, and can withstand disruption and increased costs caused by airports' upgrades."

The airport, due for total upgrade to international standard, will after completion, not only optimize operational safety, security, efficiency and productivity, but also will attract more airlines and improve the overall passenger experience. 

The Ibadan International Airport, to be so called after renovations, will become a strategic hub for international trade, commerce and tourism, attractive to foreign investments and cultures to enhance the region's reputation and competitiveness in the global aviation market, while the local economy and job opportunities will get stimulated. 

Prince Ogungbangbe however, cautioned that the new Ibadan airport after overhaul and upgrading, must be prepared to face competition from other international airports. 

 *OLUSESI writes in from Lagos via* isaacolusesi@gmail.com