BusinessDay 04 Feb 2018
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Sunday <strong>04</strong> <strong>Feb</strong>ruary <strong>2018</strong> C002D5556<br />
BD SUNDAY<br />
43<br />
Travel<br />
MMA2: Babalakin laments ‘misconceptions’ sold to Nigerians by FAAN<br />
Stories by IFEOMA OKEKE<br />
The recent intervention<br />
by the Infrastructure<br />
Concession Regulatory<br />
Commission (ICRC) has<br />
raised the hope of an<br />
early resolution of the controversial<br />
issues surrounding the first<br />
successful, privately-funded Design,<br />
Build, Operate and Transfer<br />
(DBOT) airport terminal in Nigeria,<br />
the Murtala Muhammed Airport<br />
Terminal Two, popularly called<br />
MMA2, operated by Bi-Courtney<br />
Aviation Services Limited (BASL),<br />
a member of the Resort Group.<br />
The intervention, led by Chidi<br />
Izuwah,the Acting Director-General<br />
of ICRC, brought the managements<br />
of the Federal Airports<br />
Authority of Nigeria (FAAN) and<br />
BASL together under the same<br />
roof, where both listed the areas<br />
of disagreements in the MMA2<br />
concession agreement inked by<br />
both parties in 2003.<br />
Wale Babalakin , Chairman of<br />
the Resort Group, who led a strong<br />
team of BASL directors and management<br />
to the meeting first made<br />
his presentation.<br />
Babalakin expressed regrets<br />
that certain misconceptions had<br />
been “sold, bought and distributed<br />
to Nigerians about the MMA2 concession”<br />
by FAAN, adding that one<br />
of the misconceptions was that the<br />
concession agreement was drawn<br />
by BASL for the agency to sign.<br />
This, he dismissed as untrue, as,<br />
according to him, the agreement<br />
was drafted by one Professor<br />
Akanle, a consultant engaged by<br />
the Ministry of Aviation.<br />
Besides, he also dispelled the<br />
misconception that the concession<br />
did not follow due process, arguing<br />
Babalakin<br />
that Royal Sanderton Limited won<br />
the bid for the reconstruction of<br />
the burnt domestic terminal building<br />
and could not do anything on<br />
the site for one year following<br />
which BASL was invited as a reserved<br />
bidder.<br />
He said FAAN had “sold” these<br />
misconceptions to Nigerians to<br />
justify the flouting of the agreement<br />
its officials read and signed<br />
and as a way of discouraging<br />
private investors from helping<br />
the Federal Government to lift the<br />
aviation sector from his current<br />
terrible state.<br />
Babalakin lamented that from<br />
day one that BASL inked the<br />
MMA2 concession agreement<br />
with FAAN, the agency had serially<br />
flouted it with reckless<br />
abandon. Besides, he said all the<br />
arbitral decisions and various<br />
court judgements, even up to<br />
the Supreme Court, which were<br />
in favour of BASL, were never<br />
obeyed by FAAN. This, to him, is<br />
discouraging to the private sector,<br />
“which is the only sector with the<br />
energy to provide infrastructure<br />
in the country”.<br />
He further complained to the<br />
ICRC that although part of the<br />
agreement states that all domestic<br />
flight operations in Lagos State<br />
must originate from MMA2 or any<br />
other terminal to be managed by<br />
BASL, the then Minister of Aviation,<br />
Princess Stella Oduah, went<br />
ahead to redevelop the General<br />
Aviation Terminal (GAT) and encouraged<br />
Arik Air to continue<br />
operating from there, thereby<br />
earning all the revenues due to<br />
BASL illegally. He therefore urged<br />
the commission to “study all the<br />
available documents on this and<br />
ask FAAN to hand over GAT to<br />
us and account, in arrears, for all<br />
the revenues received so far from<br />
the facility.”<br />
Babalakin lamented the monumental<br />
investments his firm had<br />
lost in the process of executing<br />
the MMA2 concession and listed<br />
them as a 50 per cent reduction<br />
in revenue due to BASL but being<br />
collected illegally by FAAN at<br />
GAT; millions of dollars invested in<br />
regional flight operations, which<br />
was approved by the Ministry of<br />
Aviation, but which FAAN and<br />
the Nigerian Civil Aviation Authority<br />
(NCAA) frustrated from<br />
taking off; over N500million used<br />
in clearing the GAT and building<br />
a dumpsite for disused aircraft<br />
which littered the then derelict<br />
terminal building; millions of naira<br />
used in building fire hydrant and<br />
underground fuel tank and the<br />
over N4.7billion used in building<br />
a link road between MMA2 and<br />
GAT, among others.<br />
He also told the ICRC that as<br />
far back as 2009, a Federal High<br />
Court had awarded a judgement<br />
debt of N132billion against the<br />
Federal Government/FAAN for<br />
consistently flouting the MMA2<br />
concession agreement, which has<br />
been accruing interest and had not<br />
been paid till date.<br />
“Apart from this, in 2007, we<br />
wrote to the Federal Government<br />
and FAAN that we were ready to<br />
provide electricity to the airports,<br />
including the International Wing,<br />
the Air force base and others so<br />
that there would be 24/7 power<br />
supply, but they refused to approve<br />
this,” he further lamented,<br />
saying the environment in the<br />
country is very hostile to the private<br />
investors.<br />
On the Four-Star Hotel and<br />
Conference Centre projects, Babalakin<br />
said, “we are ready to finish<br />
the two projects but we are completely<br />
scared of FAAN because<br />
of its antecedents. For example,<br />
we spent $2million dollars to buy<br />
tiles and another $1. 2million to<br />
airlift them for the projects, only<br />
for FAAN to frustrate us.<br />
“What is more painful is that<br />
an international company that<br />
we signed agreements with on the<br />
two projects pulled out of Nigeria<br />
because of the harsh business<br />
environment,” while describing<br />
the situation of the Hotel and Conference<br />
Centre as a “monumental<br />
embarrassment”.<br />
Asked to react to Babalakin’s<br />
submissions Monica Alphonse,<br />
the Deputy General Manager,<br />
Public Private Partnership, who<br />
spoke on behalf of FAAN, said on<br />
the various judgments in favour of<br />
BASL, only the Attorney-General<br />
of the Federation (AGF) was sued<br />
but not FAAN, adding that the<br />
agency was also not represented<br />
at the Arbitration Committee set<br />
up by the AGF, who is the Chief<br />
Law Officer of the Federation, to<br />
resolve all the contentious issues.<br />
Although she agreed that the<br />
concession agreement gave BASL<br />
exclusivity over domestic flight<br />
operations in all airports in Lagos<br />
State, despite this, she still insisted<br />
that GAT where Arik and Air<br />
Peace airlines currently operate<br />
domestic flights from was never<br />
part of the MMA2 concession,<br />
saying “what is contained in the<br />
agreement is only where MMA2<br />
was built”.<br />
Etihad Airways expand services to Nigeria<br />
Etihad Airways today reaffirmed<br />
its commitment<br />
to Nigeria with the announcement<br />
of two additional<br />
weekly flights on the<br />
popular Abu Dhabi–Lagos route,<br />
taking it to a daily service.<br />
The new Tuesday and Thursday<br />
services will start on 1 May<br />
<strong>2018</strong>. The route will continue to<br />
be operated by a two-class Airbus<br />
A330, with 22 Business Class seats<br />
and 240 in Economy.<br />
George Mawadri, Etihad Airways<br />
general manager, Nigeria,<br />
said: “Nigeria is an important<br />
market for Etihad and our home of<br />
Abu Dhabi. The airline is committed<br />
to offering attractive schedules<br />
and choice to our guests travelling<br />
between Lagos and the UAE capital<br />
as well as convenient connections<br />
to destinations including the<br />
GCC, India and Asia.<br />
“Since launching the Lagos<br />
route in July 2012, Etihad has carried<br />
almost 600,000 passengers<br />
between our hub at Abu Dhabi<br />
International Airport and the<br />
commercial heart of Nigeria. It<br />
is pleased to be able to support<br />
the high demand for our service<br />
by soon operating the route on a<br />
daily basis.”<br />
Guests travelling to Lagos on<br />
Etihad Airways will experience<br />
the airline’s award-winning<br />
service by multinational cabin<br />
crew and onboard nannies, extensive<br />
inflight entertainment<br />
selections, and a choice of complimentary<br />
international meals<br />
and beverages. Depending on<br />
the class of travel, passengers<br />
can enjoy a generous baggage<br />
allowance of two bags of up to<br />
23kg each in Economy Class and<br />
up to 32kg each in Business Class.<br />
As the trading centre of<br />
Africa and home to 21 million<br />
people, Lagos is a regional hub<br />
for many multinational companies.<br />
The additional flights will<br />
support trade links between<br />
Nigeria, the UAE and beyond,<br />
with cargo capacity set to grow<br />
from 54 tonnes to 75 tonnes per<br />
week in each direction. Key<br />
exports from Nigeria include<br />
leather goods and food items,<br />
while imports comprise consumer<br />
and fashion goods from<br />
the Middle East and Far East.<br />
The daily Abu Dhabi–Lagos<br />
schedules, effective 1 May <strong>2018</strong><br />
(all timings are local)<br />
Arik Air wins double at Africa Security Watch Awards<br />
Arik Air, Nigeria’s largest<br />
commercial airline<br />
has been named<br />
winner of the Best<br />
Security and Safety Conscious<br />
Airline in West and Central<br />
Africa award at the 14th Africa<br />
Security Watch Awards to be<br />
held in Kigali, Rwanda in <strong>Feb</strong>ruary<br />
<strong>2018</strong>. The CEO of the airline,<br />
Captain Roy Ilegbodu has also<br />
been named the Most Outstanding<br />
Aviation Personality in West<br />
and Central Africa.<br />
The award of Best Security<br />
and Safety Conscious Airline<br />
in West and Central Africa was<br />
bestowed on Arik Air in recognition<br />
of the airline’s strict compli-<br />
ance to international security<br />
and safety standards and the use<br />
of modern security tools in its<br />
operations. Arik Air won same<br />
award in 2011, 2012, 2013, 2014<br />
and 2015.<br />
Similarly, the airline’s Chief<br />
Executive Officer, Captain Roy<br />
Ilegbodu was conferred with<br />
the Most Outstanding Aviation<br />
Personality in West and Central<br />
Africa because of his pragmatic<br />
leadership in bringing back Arik<br />
Air to life and commitment to<br />
international best practice on security<br />
and safety for passengers<br />
and luggage.<br />
Arik Air CEO said of the<br />
awards: “We are pleased to<br />
again be a recipient of the Africa<br />
Security Watch Awards.<br />
Safety and security have been<br />
at the core of our operations<br />
and we will never compromise<br />
the safety of our customers. We<br />
took over this airline under very<br />
challenging circumstances and<br />
we are proud of the entire staff<br />
and management who with the<br />
support of Assets Management<br />
Corporation of Nigeria (AMCON)<br />
have rejuvenated the fortunes of<br />
the airline.”<br />
Arik Air adheres strictly to<br />
international safety standards<br />
as stipulated by global civil<br />
aviation bodies such as Nigerian<br />
Civil Aviation Authority<br />
(NCAA), US Federal Aviation<br />
Administration (FAA) and<br />
Department of Transport, the<br />
UK CAA, the European Aviation<br />
Safety Agency (EASA) and<br />
International Civil Aviation<br />
Organization (ICAO).<br />
The Security Watch Award<br />
conferment ceremony will<br />
be held at Radisson Blu Hotel<br />
and Convention Centre, Kigali,<br />
Rwanda on <strong>Feb</strong>ruary 8, <strong>2018</strong>.