FG secures financing window for domestic airlines to sustain operations

The federal government says it has secured a window for indigenous airlines to explore options for financing and aircraft leasing with players in the global space.

Festus Keyamo, minister of aviation and aerospace development, spoke over the weekend during the 10th year anniversary of Air Peace.

Keyamo said Nigeria has been invited to the Republic of Ireland where global lessors will be unveiling packages for carriers.

The minister said the arrangement is part of the support programme packaged for indigenous operations who have been struggling with opportunities to secure aircraft to boost their fleet and other cost-saving measures.

“The forum will provide a window for global players in the aircraft financing and leasing space to interface with Nigerian carriers on sustainable models,” Keyamo said.

He also said the federal government is becoming increasingly worried why Nigerian carriers experience bust and boom circles.

A boom-bust cycle is when a rapid increase in business activity in the economy is followed by a rapid decrease, and this process is repeated.

According to Keyamo, the high decline rate of indigenous carriers has become so disturbing despite the Boeing study on the inherent opportunities in Nigeria concerning the air transport value chain.

“Why is Nigeria experiencing a high mortality rate for airlines? The federal government is formally addressing this concern and with the interventions currently in place, we are getting closer to fixing the challenge,” he said.

“Issues about access to aircraft leasing and financing are under focus as the government is utilising every opportunity to assist our local carriers.”

On October 12, Keyamo said insufficient aircraft in Nigeria is the primary reason for frequent flight cancellations and high ticket prices for local and international flights.