In a move to boost the aviation industry in Nigeria, the Federal Government has pledged to provide guarantees to aircraft leasing companies for the recovery of their assets leased to local airlines in the event of default.
The Minister of Aviation, Festus Keyamo, gave the assurance during a courtesy visit by officials from Boeing, the renowned aircraft manufacturer, and Aercap, the world’s largest aircraft leasing company.
The delegation was led by the Chairman of Air Peace, Dr Allen Onyema,
Boeing and Aercap stated their willingness to offer Nigerian carriers dry lease opportunities, contingent on certain conditions being met by the country.
This development comes at a time when Nigerian airlines have faced challenges in securing partnerships with lessors globally for over a decade, due to country’s alleged failure to assist in the recovery of aircraft from defaulting airlines.
Keyamo expressed the Federal Government’s commitment to enhancing the capacity of indigenous Nigerian airlines to compete globally.
He reiterated the government’s resolve to guarantee the release of assets to lessors from any defaulting Nigerian airline.
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 a default.
“This is a new era and a new government, which has the emphasis to create enabling environment for Nigerian airlines,” he remarked.
The minister assured the lessors that they would not be shortchanged over their assets, stressing that government would do everything necessary to safeguard lessors assets from airlines in the case of default.
Keyamo urged lessors to inform the government about the airline they are dealing with so that the government would carry out due diligence on the operator’s financial status and other vital records.
Meanwhile, the Chairman and CEO of Air Peace, Allen Onyema, thanked the Minister of Aviation and 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.”
