Experts seek shift in airports' sources of revenue .....Urge managers to embrace digitisation , technology

 Experts seek shift in airports' sources of revenue 

.....Urge managers to embrace digitisation , technology 

Experts in the airports management eco-system have canvassed a shift in the sources of generating revenues for airports , saying reliance on aircraft movement  related activities are globally fast giving way for other commercial activities , such as optimal use of land around aerodromes, retail, hospitality, housing and others offerings described in aviation  parlance as non - aeronautical  sustainability sources of revenue.

They said trends in global aviation in air transport infrastructure management is pointing to using airports as a cluster of economic development and a huge contributor to growth.

The experts disclosed this yesterday at the opening of the  Airport Business Summit and Expo (ABSE), in Lagos.

Speaking at the event, Chairman /Convener of ABSE, Mr Fortune Idu called on airport managers to embrace the new thinking by seeing  airports as competitive businesses.

To remain sustainable , Idu  said it has become compelling for managers of airports to adopt aggressive route marketing strategies in order to remain relevant.

Offering more insight into the sustainability models for airports optimisation, in the 2026 edition of ABSE with the theme :  ‘Unlocking Airport Revenue Potential: Strategies and Partnerships.’,  Idu cautioned  that airport managers risked losing airlines and passengers to neighbouring facilities if they neglect route marketing.
According to Idu, the era when airports operated as monopoly facilities without competition was fast disappearing, stressing that proximity of airports across the country would increasingly force airport operators to compete for airlines, passengers and investments.
Idu said   airport managers who failed to understand route marketing in the next decade could render their facilities not fully optimised.
Idu explained that the development of several airports within relatively short distances in Nigeria meant airport operators could no longer assume the position of domination, insisting that airlines and passengers now have options.
He said: “A lot of you in Nigeria, you know, because airports are still strictly managed by the government, you think that airports do not have a competitor. So, it is a captive market.
“I can assure you that in the next 10 years, if you don't understand what they call route marketing as an airport manager, your airport will become unsustainable .This is so because airports have been built in a proximity of almost 30 kilometers, 100 kilometers maximum  from each other.”
For instance, he said that the ongoing construction of Lekki-Epe International Airport by the Lagos State government would serve as a major competitor to the Lagos airport when completed.
Idu stressed that airport operators must strike a balance between aeronautical and non-aeronautical revenues to achieve sustainability and avoid overburdening airlines with excessive charges.
He maintained that while airports must generate revenue from aircraft operations, they must also develop commercial activities around their facilities to maximise income.
“My perspective is now being measured on how an airport balances its aeronautic and non-aeronautical revenue. An airport that wants to be greedy will kill the opportunity of airlines flying and sleeping in their airports,” he emphasised.

He described the modern airport ecosystem as consisting of four major components - the airport system, aerodrome, airport city and aerotropolis.
According to him, non-aeronautical revenues come from activities such as retail outlets, food and beverages, advertising, parking, ground transportation services and other commercial ventures within and around airports.
He emphasised that aeronautical revenues remained the primary income source for airports because they support operational expenses, maintenance and infrastructure development.
However, he noted that reliance solely on aeronautical revenue could be risky because of its volatility, adding that non-aeronautical revenue provides stability and helps airports maintain safety and service standards.
He also warned  airport operators against excessive charges that could discourage airlines from using their facilities, noting that aviation regulators globally monitor airport pricing to prevent unfair practices.
According to him, passenger service charges and landing fees jointly account for 98 per cent of aeronautical revenues generated by airports globally, 77 per cent and 21 per cent respectively, while parking and avio bridge are responsible for just one per cent each of aeronautical revenues.
He further canvassed business-oriented approaches, development of partnerships and exploration of commercial opportunities by airport managers around their facilities to ensure long-term sustainability.

In her presentation, Regional General Manager of Port Harcourt International Airport, Ezike Ifesinachi Lynda canvassed optimal use of airport land, deepening of concession agreements , regular maintenance of operational facilities as the game changer that could boost revenue streams for airports.

She said the airport is looking at expanding its facilities for cargo / logistics operations, because of revenue opportunities in the e- commerce value chain , which could boost earnings by over 12.3 percent.

In his presentation, Manager of Osubi International Airport, Mr Egwuatu Winston said push for operational safety and adherence to safety management systems as well improved security  boost passenger experience and rebounds airport to sustainability.

On his part, Regional General Manager of Nnamdi Azikiwe International Airport, Abuja, Comrade Danjuma Ahmed highlighted the role of operational efficiency as the bedrock of airports' sustainability.

He said every airport must put in place an efficiency template that sets it apart from others. 

He said in Nigeria, managers of airports were yet to embrace a higher level of priority to push for its sustainability.

In her presentation, Airport Manager, Sam Mbakwe International Cargo Airport, Owerri, Dr. Nkechi Al- Ihekwaba said airports could attain higher level of optimisation by utilising effective use of data management in planning and development.

She canvassed the use of data and deployment of technology to bring about smart airport management.