The Federal Government has agreed to guarantee aircraft
leasing companies the recovery of their assets leased to Nigerian airlines in
the event of likely default in the payment of lease rentals.
Lease rentals are payment made by airlines for aircraft hired
for their operations from leasing companies.
The Minister of Aviation, Festus Keyamo gave the assurance
when officials of Boeing company, the manufacturers of Boeing air planes and
officials of Aercap, the world's biggest aircraft leasing company, led by the Chairman
and Chief Executive Officer of Air Peace, Dr. Allen Onyema, paid him a courtesy
visit.
Boeing and Aercap expressed the willingness to offer Nigerian
carriers dry lease opportunities if certain conditions were met by the country.
Recall that while the biggest airlines in the world thrive on
their partnership with lessors through dry leasing and other forms of financing
for their aircraft acquisitions.
But, Nigerian airlines have been navigating difficult curves
over a decade by lessors worldwide, which have unofficially blacklisted them
from such opportunities.
Global lessors claimed
that the country had not helped in the recovery of aircraft from defaulting
airlines in Nigeria.
The Minister of Aviation expressed the willingness and desire
of the Federal Government of Nigeria to strengthen the capacity of the
indigenous Nigerian airlines to compete on the global stage.
On this, he reiterated the resolve of the Federal Government
to guarantee the release of Lessors' assets to its owners from any defaulting Nigerian
airline.
Keyamo, during the
meeting, said his decision to enable lessors afford Nigerian airlines dry lease
options was in line with the plans of the federal government to boost the
capacity of Nigerian airlines in order to enable them compete effectively in
the international air transport market.
He assured Boeing, Aercap and other lessors that the federal
government would guarantee the release of their assets from any Nigerian
carrier whenever there is default and emphasized that this is a new era and a
new government, which has the emphasis to create enabling environment for
Nigerian airlines.
The minister gave the assurance that lessors will not be
shortchanged over their assets; stressing that government would do everything
necessary to safeguard lessors assets from airlines in the case of default.
The minister also emphasized that lessors should inform
government about the airline they are dealing with so that government would
carry out due diligence on the operator's financial status and other vital
records.
Onyema thanked the Federal Government for the commitment to
help Nigerian carriers by agreeing in principle to give such guarantees to
lessors worldwide.
He said, "By the Minister's promise today, the
government has indicated that it is not paying lip service to its plan to
provide lifeline and support to Nigerian airlines and a positive revolution in
the aviation industry is now imminent".
Onyema also commended the Minister on the stand he took for
Nigeria on Bilateral Air Service Agreement (BASA) in order to protect Nigerian
carriers during the just concluded 15th International Civil Aviation
Organisation Air Service Negotiation (ICAN2023) held in Riyadh, Saudi Arabia
where he led the country to, not only refuse the usual short-changing of the
country through lopsided BASA agreements but, in one instance, walked out on a
powerful nation that has disrespectfully refused to abide by the principle of
reciprocity in her treatment of Nigerian airlines contrary to the BASA signed
by both countries.
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