Airlines will survive if they can re-access, mitigate their financial risks – Tayo Ojuri

Tayo Ojuri, is an industry expert and Chief Executive Officer, Aglo Limited, an aviation support service. He is also aviation consultant with special emphasis on airport operations and management and specialized in developing non-aeronautical revenues. In an interview with Ifeoma Okeke, Ojuri speaks on aviation as an economic catalyst and making airlines and airports commercially viable.

What are some of the services you render as an aviation consultant?

We render a service that has to do with airports operations and management. My background is in airport operations and management with focus on building non-aeronautical revenues, focus on automating the system to ensure transparency and improve revenue as well as ensure the airports are safe, secure and commercially viable system. I am a license agent of foreign airline and we provide incoming private jets, technical stop, cargo flight, with getting clearances and permits from the regulatory agencies. We provide data analysis because we realized there is a short fall in aviation data and that data we are able to collect and help in market analysis. We offer advisory services to customers and airlines, cargo companies, ground handling companies, and airports.

There have been issues raised about security and adequate fingers at the new terminals being built. What is your take on this?

Yes, there are more fingers in the existing airport that the new airports because the new airport is just an extension of the old one. So, it is just being able to extend what we have so that we can have a capacity improvement. What we should note is that the passengers at the Lagos international airports are about five to seven million annually. When we are at the peak period, do you have enough space for passengers? I believe with the new existing airport and with the old airport being renovated to international standards, we will have enough space.

If the Nigerian air spaces get liberalized, what are the gains for Nigeria?

Within Africa, if we look at Egypt air, South African Airways, and Asky, it is going to overshadow us but I believe the passengers will be at the good receiving end because the passengers will be able to travel across Africa without having to go to Europe. From the airlines perspective, we do not have airlines that will be able to compete. However, we can look at the viable airlines and give them some encouragement.

With the challenges facing airlines, some of which are aviation fuel scarcity, forex scarcity and insufficient hangers, amongst others, what do you think the government can do to help airlines stay alive?

Forex challenge is an economic challenge and not just an aviation issue. What can done is for us to diversify the economy, in terms of agriculture and being able to use aviation as an agricultural channel, so that we will be able to get inflow of goods and services. On the fuel side, it is tied to the forex because there is no liquidity, so with that lack, we do not have people to actually go out there and buy fuel at a reasonable price.

Travel agents are squeezed as a result of the exit of some international airlines and the increase in online transactions. What do you think they can do to stay alive?

To stay alive, they should look at the direction of tour and tourism within Nigeria because we have places that are secured that are still not discovered within Nigeria. You have Calabar, Akwa Ibom, Adamawa and Jos that have good climate and are restful places. We have places in Nigeria that have good weather and restful places. They can organize tours around these places or around some places in Africa. Irrespective of the economy, going on vacations and having recreational activities rejuvenates the mind and actually helps to see new ideas. 

With the economic downturn, do you think more airlines will still leave the country or do you see those who have left coming back if the forex restrictions are relaxed?

There are still airlines that will reduce frequencies and those who will leave, however airline business is cyclical. It goes in leaps and bounds and sometimes it goes through the valley before it goes to a mountain. At this point, we have to wait for the economy to pick up and unfortunately, airline business is the first to get hit when there is an economic crunch and it is the last to come up. When the economy pick up, people will start travelling again. We still have close to 180million people and there will still be movement of people. There are huge numbers of people in Diaspora and there is a need to visit family and friends, come for weddings, burials, birthdays and handle some projects. The airlines will survive but it is now being able to re-access and mitigate their financial risk. With good management, great ethics and great operational prudency, they will be able to survive.

What should be done for cargo airports to be functional again?

We designated cargo airports without actually having a designated agricultural zone that will provide the specialized goods either perishable or dry goods. With that designation, we have a source of produce that will fit the airport. So those cargo airports will now be for sorting, packaging and exports. It is being able to tie these together and have the all year round consistency of produce or products that will be supplied to those airports. That way, you will get an optimal market which you know is guaranteed. This will encourage the airlines to come to these airports, pick the goods and take them out. It makes the cost of goods being brought in cheaper.

What are the non-aeronautical sources of revenue and how do you think they can generate more income for the government?

Some of the non aeronautical revenue lines are the food and beverage, advertising, car pork, real estate, such as airports, shops, that will be an attraction to passengers, staff as well as those that come to meet and greet. Been able to develop these is first being able to understand the demography of the passengers that fly through our airport.

This way, we are able to see their spending pattern and what they do. With that need assessment and the gap realization, we are able to know the number of passengers that travel and use the car park. So, the car park will be optimized. Secondly, for advertising we need to know the captive audience. Thirdly, we are able to use the food and beverages because of the longer dwell time within the airport. For business purposes, there should be hangers, a hotel close by the airport that people could stay, whereby for every business, the Federal Airports Authority of Nigeria, (FAAN) gets a concession fee and that is a major source of income. This way, there is no shock to finances.

Ifeoma Okeke