..urges Banks to support Operators with financing
The Minister of Aviation and Aerospace Development, Mr. Festus Keyamo (SAN), has expressed his dismay that Nigerian carriers are responsible for airlifting a mere 5% of international travelers from the country.
This figure highlights a major challenge for the local aviation industry.
Keyamo made the statement during the groundbreaking ceremony for Air Peace’s new maintenance hangar at the Murtala Muhammed International Airport (MMIA).
Despite this concern, Keyamo also announced a significant milestone: Nigeria will receive its first dry lease aircraft in almost two decades.
The aircraft, leased by Air Peace, is expected to arrive on October 6. This development is a direct result of Nigeria’s removal from a global aviation blacklist following its implementation of the Cape Town Convention, which has restored international confidence in the country’s aviation ecosystem.
Keyamo highlighted the economic benefits of this shift from wet leases, which had been the norm for nearly 20 years.
He explained that wet leases burdened consumers with high ticket prices and increased maintenance costs for airlines. A dry lease, by contrast, gives the airline full control of the aircraft, which is a sign of renewed trust in the local aviation industry.
The Minister also lauded Air Peace’s new Maintenance, Repair, and Overall (MRO) facility, which he believes will be a game changer.
“This local MRO will significantly reduce the capital flight and foreign exchange spent on maintaining aircraft abroad,” Keyamo said noting that Air Peace alone spends approximately N180 billion annually on maintenance, a massive amount of money that will now remain within Nigeria’s economy.
He further revealed that the new facility, which will be the first of its kind in West and Central Africa to accommodate wide-bodied aircraft, will attract foreign investment.
The Minister also disclosed that President Bola Tinubu’s visit to Brazil has already paid off, with the Brazilian aerospace company Embraer partnering with Air Peace to provide technical support for the new hangar.
In a call to action, Keyamo urged Nigerian commercial banks to re-engage with the aviation sector.
He assured financial institutions that with the system’s recalibration, financing aircraft acquisitions is now a secure investment, as they can be confident of recouping their money.
Keyamo also confirmed that he has approved four new international routes for Air Peace, including destinations in Italy, Canada, Paris, and Istanbul, as part of the government’s commitment to help local operators thrive and increase their market share of international travel.
