OPENING REMARK BY CHAIRMAN, THE LEAGUE OF AIRPORT AND AVIATION CORRESPONDENTS

(LAAC), Comrade SULEIMAN IDRIS, AT THE 28TH ANNUAL CONFERENCE OF THE LEAGUE OF AIRPORT

AND AVIATION CORRESPONDENTS (LAAC), WITH THE THEME: “AVIATION SURVIVABILITY AMIDST A

CHALLENGING MACRO-ECONOMIC ENVIRONMENT” TAKING PLACE AT PROVIDENCE HOTEL, IKEJA,

LAGOS, ON FRIDAY 26th JULY 2024

The Honorable Minister of Aviation and Aerospace Development, Mr. Festus Keyamo (SAN),

The Governor of Lagos State, Mr. Babajide Olusola Sanwo-Olu,

Chief Executives of aviation agencies,

The Chief Executive of Nigerian Immigration Service,

The Chief Executive of Nigeria Customs Service,

The Commissioner of Police,

Chief Executives of airlines,

Chief Executives of ground handling companies,

Chief Executives of Concessionaires airport companies,

Chief Executives of other private sector operators here present,

Members of the fourth estate of the realm,

Ladies and gentlemen,

I am delighted to welcome you all to the 28th annual conference of the League of Airport and Aviation

Correspondents (LAAC) which is held under the theme: “Aviation Survivability Amidst A Challenging Macro-Economic Environment.”

When we converged in this hall on 27th July 2023, we discussed the changing times and the need to change strategies in the quest for the growth of the industry, the distortions noticed in the Nigerian economy and the aviation industry in particular were not anticipated. No soothsayer could have forecast that the national economy would take a plunge so much to the depth we have seen within one year.

The theme of this year’s conference, ‘AVIATION SURVIVABILITY AMIDST A CHALLENGING MACRO-

ECONOMIC ENVIRONMENT’ was inspired by the challenging state of our economy, which has amplified the already existing constraints to growth and development of the country’s aviation sector in the form of poor access to forex, weakening currency, high fuel costs, ballooning maintenance costs, decaying airport infrastructure, regulatory constraints, growing manpower demand, technology upgrade, passenger comfort, among other issues that require urgent attention of industry stakeholders.

Ladies and gentlemen, we all know that aviation business is capital intensive, coupled with the fact that most transactions relating to equipment acquisition, spare parts, leasing, maintenance, training and manpower development and other aspects imperative for keeping aircraft in the sky require foreign exchange.

However, with the recent developments under the new dispensation which introduced the floating of the local currency, high inflation has since wiped out disposable fund from majority of the citizens.

Succinctly put, air travel holds no attraction to majority of the erstwhile flying public, let alone provokes the interest of new air passengers.

For Nigerians who travel by air, it has been an agonising experience since the Naira started its free fall against major foreign currencies such as the United States Dollar, USD, Euro, and the British Pound Sterling, BPS, among others.

Each of the service providers in the aviation value chain in Nigeria is presently groaning. So also are the consumers of the service- passengers and air cargo handlers.

Early this week, the CBN announced that interest rate has climbed up to over 27%. The inflation rate is more than quadrupled.

Organisations prospecting in each of the aviation value chain are also not smiling. The macro-economic policy cannot take them out of the woods.

Passengers are complaining for paying over N200, 000.00 for just one leg of an hour flight on the domestic routes.

The cost of aviation fuel is highly prohibitive. Procuring spares at N1500 to 1USD has put the airlines in permanent auto unnerving mode. The ground handlers want to regularly review their tariffs as against the free fall of the naira. Statutory training for technical personnel in accordance with the International Civil Aviation Organisation, ICAO, recommended standards and practices is now being rationalised.

Ipso facto, the regulatory agency and every other service providers are getting their share of the heat which the current disconcerting macro-economic environment has produced.

No stakeholder is exempted from the effect of the industry’s current challenges. This is one of the major reasons that we are gathered here today to brainstorm and exchange ideas on how to navigate the multifaceted challenges stunting the growth and development of our industry under the prevailing macro-economic environment.

Although no segment of Nigeria’s economy operates in isolation, aviation remains the major gateway to development of any country’s economy.

We are therefore hopeful that answers to the many questions surrounding the theme of this conference will emerge in the course of today’s deliberations.

As stakeholders in Nigeria’s aviation industry, LAAC’s topmost priority is that every facet of Nigeria’s aviation industry improves in terms of performance.

We have therefore, in the pursuit of this collective objective, selected proven professionals in the sector to dissect the pressing issues and articulate the solution.

Ladies and gentlemen, the aviation industry in Nigeria, the giant of Africa, needs not only to be left battling for survival, the sector needs ideal environment to thrive and in no time experience meteoric growth through efficient performance in order to assert its expected position in the international aviation market.

It is my belief that the outcome of today’s discussions will provide the direction for policy and decision makers to guide and propel the industry towards a speedy growth.

As a first step towards the recovery process we all hope for, permit me to use this forum to humbly call on the Federal Government to kindly reconsider its recent decision that 50% of the internally generated revenue of some of the Agencies should be remitted to the government. This will go a long way to reduce the already unbearable burden that the industry is facing during this challenging time.

I wish to once again thank you for finding time to participate in this conference.

I urge you to listen to the robust presentations and engagements by our seasoned resource persons as well as contributions from our distinguished guests and participants.

Once more, thank you and welcome to LAAC Conference 2024. God bless the Federal Republic of Nigeria.