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Business News of Friday, 30 October 2020

Source: economicconfidential.com

FAAN disrupts airlines’ operations over debts

FAAN disrupts airlines’ operations over debts FAAN disrupts airlines’ operations over debts

The Federal Airports Authority of Nigeria (FAAN) recently disrupted the operations of airlines indebted to the agency by delaying the operations of two airlines at the Nnamdi Azikiwe International Airport, Abuja. FAAN officials closed the counters of the two airlines during check in and it was after prolonged pleading by the domestic carriers that the agency allowed them to airlift their passengers for the flight.

Spokesman for FAAN, Mrs. Henrietta Yakubu who confirmed the development said, the agency was on a revenue drive at the Abuja airport. A FAAN official said the agency had to recover its debts in order to sustain its operations, pay its workers in order to continue to provide services to airlines and other airport users.

Economic Confidential learnt that the agency intends to extend the disruption to other airports until it is able to recover the debts owed it by the operators.

An industry observer told Economic Confidential that the airlines should have envisaged that the agency must seek for their revenue and should have made provision for that in their financials but also noted that FAAN and the airlines should have negotiated for the payment part of the debts, knowing that it has not been easy for the airlines and the airport managers due to economic downturn occasioned by the COVID-19 lockdown and the aftermath.