FG receives certificate of compliance for establishment of aviation leasing company
As part of the procurement process for the establishment of Maintenance, Repair and Overhaul Facility (MRO), the Federal Government has received the Outline Business Case certificates for the proposed Aviation Leasing Company and the Maintenance, Repair and Overhaul facility.
The Minister of State for Aviation, Hadi Sirika, who received the certificates on behalf of he Federal Government, stated that they would now proceed to the next stage in its drive to establish an aviation leasing firm and a maintenance and repair facility in Nigeria.
He said the government recently announced the transaction advisers for the ALC and MRO, adding that with the certificates, the TAs would be empowered to take further steps in their duties.
Sirika noted that the latest acquisition would enable the government begin work on the procurements for the ALC and MRO and thanked the ICRC for making sure that the certificates were issued the government after all due process were completed.He noted, “most of the airlines operating in Nigeria are faced with the challenge of funding.” He said over 52 airlines has come into the aviation over the years but could not prosper in operation due to the challenge of funding.
The minister stated that finding on the best way to operate a National Carrier has been concluded and the report submitted, “we are now waiting to go to procurement and I can assure you that we will deliver on the National Carrier before December 2018. We will ensure that it is transparent and for the interest of all Nigerians.”
He commended the ICRC delegation for the presentation of the business case (OBC) certificates for the Aviation Leasing Company (ALC) and the Maintenance, Repairs and Overhaul (MRO) to him. “To have this company which will provide leasing services will indeed boost the operation of airlines in Nigeria,” Sirika noted.
The Acting Director-General, ICRC, Chidi Izuwah, said the MRO was the most important link in the aviation value chain as the major consideration in the industry was safety.He said, “considering the importance of the MRO, it is incomprehensible that none exist in the West African region, 98 years after the first aircraft landed in the country in 1920.
“The lack of an MRO has had a negative impact on the survival of airlines in the country as airlines have struggled to maintain their fleet or stay in business for consistently long periods as seen in other climes, due to the exorbitant cost of maintenance that isn’t available locally and the time it takes to fly the aircraft for checks.”
On the ALC, Izuwah said it was estimated that about 70 per cent of commercial aircraft in Nigeria were leased and 50 per cent of the fleet globally. He noted that despite the obvious market for aircraft leases, the West Africa region does not have a single Aviation Leasing Company and relied solely on leasing companies in Europe, North America and Asia for aircraft.
“Nigeria is grossly underserved in the provision of aircraft, with only 48 functional aircraft operated by eighr airlines serving a population of over 180 million people with over 30 airports. This low number of aircraft is not unconnected with the challenges of securing favourable leases,” he said.
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