THE Federal Airports Authority of Nigeria’s
(FAAN) plan to acquire 30 aircraft for domestic airlines on behalf of
the federal government through a $500m loan, secured from China has
come under serious condemnation in the country’s aviation sector.
Lambasting government over the move yesterday, was the President, Aviation Round Table (ART), Captain Dele Ore, who described the move as ridiculous and unnecessary, predicting that it would be a futile exercise.
Speaking on the development, Ore noted that it was not in the establishment Act of FAAN to negotiate aircraft for the domestic operators an act he described as usurpation of the functions of National Civil Aviation Authority (NCAA).
He also queried the rationale behind the acquisition of the 30 aircraft for the operators and warned against creation of bad debts to the next generation even as he wanted to know the conditions attached to the loan.
In his words: “What functions are assigned to FAAN by its establishment Act? It definitely makes ultravires the powers of FAAN to acquire aircraft for any airline or for any purpose.
Furthermore, where do we place NCAA in all these? It is trite law and usual practice that NCAA has responsibility over the supervision, air worthiness and importation inspection of any aircraft meant for Nigeria.
“Because we are once again creating more bad debts for the nation to the detriment of our grandchildren, the public will want to know the process and conditions attached to this loan.
When the bubble bursts in future this country will be embarrassed because of too many unanswered questions.
“What is the interest of FAAN in all these? Who needs these aircraft? What feasibility study has been carried out, which concluded the suitability of that particular aircraft for a particular route network? In what proportion will the 30 aircraft be shared among the airlines, which indicated interest or have requested for these aircraft?”
Ore declared that international best practices dictate that most airlines don’t need to own their aircraft out-rightly, but rather lease them through various financial institutions like banks, insurance companies, aircraft leasing companies and others.
Besides, he explained that the Cape Town Convention, which Nigeria is a signatory to had made acquisition of aircraft easier for any interested airline company in the country without the involvement of the government even as he urged the domestic airlines to take advantage of this for the acquisition of aircraft for their operations.
Lambasting government over the move yesterday, was the President, Aviation Round Table (ART), Captain Dele Ore, who described the move as ridiculous and unnecessary, predicting that it would be a futile exercise.
Speaking on the development, Ore noted that it was not in the establishment Act of FAAN to negotiate aircraft for the domestic operators an act he described as usurpation of the functions of National Civil Aviation Authority (NCAA).
He also queried the rationale behind the acquisition of the 30 aircraft for the operators and warned against creation of bad debts to the next generation even as he wanted to know the conditions attached to the loan.
In his words: “What functions are assigned to FAAN by its establishment Act? It definitely makes ultravires the powers of FAAN to acquire aircraft for any airline or for any purpose.
Furthermore, where do we place NCAA in all these? It is trite law and usual practice that NCAA has responsibility over the supervision, air worthiness and importation inspection of any aircraft meant for Nigeria.
“Because we are once again creating more bad debts for the nation to the detriment of our grandchildren, the public will want to know the process and conditions attached to this loan.
When the bubble bursts in future this country will be embarrassed because of too many unanswered questions.
“What is the interest of FAAN in all these? Who needs these aircraft? What feasibility study has been carried out, which concluded the suitability of that particular aircraft for a particular route network? In what proportion will the 30 aircraft be shared among the airlines, which indicated interest or have requested for these aircraft?”
Ore declared that international best practices dictate that most airlines don’t need to own their aircraft out-rightly, but rather lease them through various financial institutions like banks, insurance companies, aircraft leasing companies and others.
Besides, he explained that the Cape Town Convention, which Nigeria is a signatory to had made acquisition of aircraft easier for any interested airline company in the country without the involvement of the government even as he urged the domestic airlines to take advantage of this for the acquisition of aircraft for their operations.
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