Bidders emerge for MRO, aircraft leasing company

The Federal Government’s plan to set up Maintenance, Repair and Overhaul (MRO) facility, and Aircraft Leasing Company has received a boost with the emergence of bidders for the projects.

The Ministry of Aviation, following evaluation of proposals, approved the consortium of AJ Walters Leasing Limited (AJW Leasing) and Glovesly Pro-Project Limited, as the preferred bidder to establish the Aircraft Leasing Company for Nigeria. The trio of AJ Walters Aviation Limited, EgyptAir Maintenance & Engineering (EGME) and Glovesly Pro-Project Limited emerged the preferred bidder to establish the MRO.

The MRO and aircraft leasing company are among the four main components of the Aviation Roadmap initiative of the current administration, which also has the national carrier project and airport concession programme.

Checks revealed that AJW Leasing is the leasing subsidiary of AJ Walter Group. The company optimises airline fleet strategies by leasing aircraft engines and spare parts. This flexible approach is particularly beneficial for small to medium sized airlines seeking to maintain competitive advantage, manage cash and strictly control operational costs for maximum profitability. AJ Walters Leasing manages a substantial portfolio of leases and has a customer base of 22 airlines in more than 20 countries.

Glovesly Pro-Project Limited is an indigenous and integrated company incorporated under the laws of the Federal Republic of Nigeria. The company has the capacity and the capability to contribute to the challenging and growing requirements in the aviation industry, communication, power sector, building construction, civil engineering, road construction and general procurement.

The Guardian learnt that the leasing company will be structured as a Joint Venture (JV) between the Federal Government and the private investor. The business model would be, in the short term, to lease aircraft from international lessors and subsequently sub-lease to African airlines, while long-term plan is to acquire, own and lease aircraft directly to African airlines.

AJ Walter Aviation Ltd. provides supply, exchange, repair, and lease of commercial aircraft spare parts. Founded in 1961, the company offers total repair process management, logistics, transport, engineering, and aircraft project management services to clients worldwide.

EgyptAir Maintenance & Engineering (EGME) is a Leading MRO in the Middle East and Africa offering MRO services to commercial aircraft, engines and components, with a customer base of over 81 airlines.

The MRO facility, which will be sited at the Nnamdi Azikiwe International Airport, Abuja, will also run through Public Private Partnership (PPP) using the Build, Operate and Transfer model and will have the capacity to service both Narrow Body (Jet and Turboprop) and Wide Body aircraft.

In compliance with the Infrastructure Concession Regulatory Commission (ICRC) guidelines, a delegation from the Aviation Ministry, ICRC and the Transaction Advisers will conduct a physical due diligence exercise on the preferred bidders at their operational premises.

This will precede negotiations between the government and the bidders, after which the Full Business Case for each project will be submitted and approved by the ICRC and the Federal Executive Council.

Subsequently agreements will be signed between the preferred bidders and the Federal Government of Nigeria, while implementation of the projects are expected to commence this third quarter.