Concessioning a Strategy for Enhancing Nigeria’s Airport Operational Efficiency - Lessons from Developed Countries

Document Type: Research Paper

Authors

Department of Transport Management Technology, Federal University of Technology, Akure. P.M.B. 704, Akure, Nigeria

Abstract

This study examines some concessioned airports in the developed countries and their operational performance level with a view to identifying the positive impact of concessioning on their growth, development and operational performance. The ultimate goal of the study is to provide basis for adapting the experience from lessons learnt to Nigeria’s airports as a strategy for realization of airport operational efficiency. The study advocated for the concessioning of two principal airports in Nigeria because of their potentials to enhancing the application of the experience learnt from lessons on concessioning in the developed countries. Data obtained from relevant Government Institutions and Agencies in Nigeria were analyzed using descriptive statistics. It was concluded that Lagos and Abuja International Airport are the two major airports in Nigeria that can be privatized or concessioned in order to improving their level of efficiency. Happenings around the world have shown the efficacy of Government disengagement in running business through the policy of concessioning and privatization. Airport concessioning and privatization has been considered as a major tool to enhance airport efficiency as witnessed in the developed countries. Airport concessioning has the capacity to enhance efficiency of airport operation; reduce cost of airport services to stakeholders; decrease cost to the government for the support of airport sector; and attract private sector participation to free public resources for public services.

Keywords

Main Subjects


[1]      Forecasting, O. E. (2005). The economic and social benefits of air transport. Geneva, switzerland, air transport action group.

[2]      Transportation research board of the national academics. (2013). Airport cooperative research program (acrp) synthesis 48. Retrieved from http://www.trb.org/ Publications/PubsACRP   SynthesisReports.aspx

[3]      Windows Internet Explorer (2011). Air Transportation System- Definition of Air Transport. Retrieved from https://www.thefreedictionary.com/air+transportation+system.

[4]      SERVICOM Integrated/Local Charter. (2009). Retrieved from:

        https://www.faan.gov.ng/.

[5]      Jerome, A. (2008). Privatization and enterprise performance in Nigeria: Case study of some privatized enterprises (Vol. 175). African Economic Research Consortium.

[6]      Oghojafor, B. E., Kuye, O. L., & Alaneme, G. C. (2012). Concession as a strategic tool for ports efficiency: An assessment of the Nigerian ports. American journal of business and management1(4), 214-222.

[7]      Ogunsiji, A. S., & Ogunsiji, O. O. (2010). Consummate precision of strategic management approach on transport logistics and physical distribution for port performance efficiency: A case study of Nigerian Ports. Journal of emerging trends in economics and management sciences1(2), 96-101.

[8]      Tsvetkov, A. (2010). Strategy for the development of the transport infrastructure of the republic of bulgaria through concessioning mechanisms. Bulgarian minister of transport, information, technology, and communication.Retrieved from:

         www.traceca-org.org/fileadmin/fm-bulgaria/Presentation_Concessions_0310_en.pdf

[9]      Airports council international, north America. (2016). Retrieved from:

        www.acina.org/ content/airport-concessions-award-winners.

[10]  Federal government of Nigeria. (n.d.). Retrieved from:

        https://en.wikipedia.org/wiki/Federal_government_of_Nigeria.

[11]  Allen, C. K. (1999). A new geography of Nigeria. Retrieved from:

https://books.google.com/books/about/A_New_Geography_of_Nigeria.html?id=SJ4PAQAAMAAJ.

[12]  Filani, M. O. (1983). Air Transportation in Oguntoyinbo. In J. S. Areola, O. O. Filani M., (Eds.), A geography of Nigerian development.

[13]  Air Nigeria. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Air_Nigeria.

[14]  Aun, I. I. (2013). Airport development and socio-economic development of Nigeria. Journal of research in national development11(1), 196-205.

[15]  Bofinger, H. (2011). Africa's transport infrastructure: Mainstreaming maintenance and management. Africa: World Bank Publications.

[16]  Afolayan, O. S., Asaju, A. J., & Malik, N. A. (2012). Variation in spatial trend of passengers and aircrafts movement in Nigerian international airports. International journal of humanities and social science2(10), 126-133.

[17]  Gilroy, L. (2007). Annual privatization report. Retrieved from:

         http://tinyurl. com/l5o5e8.

[18]  Starkie, D. (2008). The airport industry in a competitive environment.  OECD/ITF joint transport research centre discussion papers, 29. http://dx.doi.org/10.1787/20708270.

[19]  Cruz, C. O., & Marques, R. C. (2011). Contribution to the study of PPP arrangements in airport development, management and operation. Transport policy18(2), 392-400.

[20]  Gridlock on the ground: How airlines can respond to airport congestion. (2015).
 Retrieved  from:

         https://www.mckinsey.com/industries/travel-transport-and-logistics/our- insights/ gridlock-  on-the-ground-how-airlines-can-respond-to-airport-congestion.

[21]  Alieva, J. (2017). Retail management: factors influencing profit maximization and customer satisfaction.: A case study of airport operations and concession management. Retrieved from:
www.diva-portal.org/smash/get/diva2:1075335/FULLTEXT01.pdf

[22]  Czerny, A. I., Shi, Z., & Zhang, A. (2016). Can market power be controlled by regulation of core prices alone? An empirical analysis of airport demand and car rental price. Transportation research part A: policy and practice91, 260-272.

[23]  Del Chiappa, G., Martin, J. C., & Roman, C. (2016). Service quality of airports' food and beverage retailers. A fuzzy approach. Journal of air transport management53, 105-113.

[24]  da Rocha, P. M., de Barros, A. P., da Silva, G. B., & Costa, H. G. (2016). Analysis of the operational performance of brazilian airport terminals: A multicriteria approach with De Borda-AHP integration. Journal of air transport management51, 19-26.