FG to guarantee 30 aircraft for airlines in bailout plan

The problem of insufficient capacity, particularly in terms of operational aircraft, may soon become a thing of the past for airlines operating in the country, as the Federal Government is almost concluding plans to guarantee a fleet of three aircraft each for  about 10 airlines. This is part of an intervention scheme for the aviation industry, Nigerian Compass has learnt

Speaking with Nigerian Compass, the General Manager, Corporate Communications of Federal Airports Authority of Nigeria (FAAN), Yakubu Dati, who confirmed the development, explained that the plan would help existing airlines having problems to refleet without stress. 

Dati, who denied claims in some quarters that the Federal government would finance the acquisition of the aircraft for the airlines, explained further that what the federal government plans to do is to guarantee the acquisition of the aircraft from the manufacturers while the beneficiary airlines pay back under a less stressful condition.

“It is part of the intervention plans of the Federal Government in the aviation industry and it is part of the transformation agenda of the President Goodluck Jonathan in the sector. 

It is not that the Federal government would buy the aircraft for the airlines and ask them to pay back. Rather the federal government through the ministry of aviation would facilitate an acquisition process between the manufacturers and the airlines. And the airline would be able to get the aircraft directly from the manufacturers and they would pay for it through a more convenient way better than when they go through financiers who charge them very high interest,” Dati explains.

Further investigations revealed that the 30 aircraft would acquired through the process and the expected beneficiary airlines  will include those in operation, those that went out of business due to harsh economic pressures and  operators that may be encouraged to come into the industry.

The National Economic Council (NEC), made up of governors,  minister of finance, Governor of Central Bank of Nigeria and chaired by the Vice President, particularly harped on the need for such intervention in a meeting held in Abuja, last week.

The Compass