FG working out modalities for purchase of 30 aircraft –Ministry
- Details
- Category: Business
- Written by Chris Agabi, Lagos with agency report
- Hits: 44
Modalities for purchase of 30 aircraft by the federal government and mode of distribution to domestic airlines are being worked out, the spokesman to the Minister of Aviation, Mr. Joe Obi has said.
In addition, members of the Airline Operators of Nigeria (AON) are being contacted so as to jointly agree on the aircraft need of each of the local airlines.
Obi said contrary to the widely circulated reports that the aircraft were being purchased by the Federal Airports Authority of Nigeria with a foreign loan of $500 million, the planned purchase as a matter of government’s policy to assist domestic carriers was the prerogative of the federal government through the Ministry of Aviation.
The fact of the matter, he clarified, was that the said amount was the loan secured from China for financing the on-going re-modeling of airports in the country.
On the source of funding for the planned purchase of the 30 aircraft, Obi explained that the purchase is to be funded through the Aviation Intervention Fund in conjunction with the Central Bank of Nigeria (CBN) and the Bank of Industry (BoI).
On the actual cost of the aircraft, he said the real cost was yet to be arrived at as discussions were on-going as to the type and model desired by the airlines.
Currently, he noted that the type of aircraft being used by majority of African carriers including Nigeria were not meant for short-haul flights such as obtained in the country because most flights are between 1hour and 1hour 30 minutes whereas the aircraft being used here have a minimum endurance of three hours and maximum of five hours.
In other parts of the world, short haul flights are operated with smaller fuel efficient planes. He said all these would be put into consideration before the deal is sealed.
Category: Business Written by Chris Agabi, Lagos with agency report Hits: 44
Modalities for purchase of 30 aircraft by the federal government and mode of distribution to domestic airlines are being worked out, the spokesman to the Minister of Aviation, Mr. Joe Obi has said.
In addition, members of the Airline Operators of Nigeria (AON) are being contacted so as to jointly agree on the aircraft need of each of the local airlines.
Obi said contrary to the widely circulated reports that the aircraft were being purchased by the Federal Airports Authority of Nigeria with a foreign loan of $500 million, the planned purchase as a matter of government’s policy to assist domestic carriers was the prerogative of the federal government through the Ministry of Aviation.
The fact of the matter, he clarified, was that the said amount was the loan secured from China for financing the on-going re-modeling of airports in the country.
On the source of funding for the planned purchase of the 30 aircraft, Obi explained that the purchase is to be funded through the Aviation Intervention Fund in conjunction with the Central Bank of Nigeria (CBN) and the Bank of Industry (BoI).
On the actual cost of the aircraft, he said the real cost was yet to be arrived at as discussions were on-going as to the type and model desired by the airlines.
Currently, he noted that the type of aircraft being used by majority of African carriers including Nigeria were not meant for short-haul flights such as obtained in the country because most flights are between 1hour and 1hour 30 minutes whereas the aircraft being used here have a minimum endurance of three hours and maximum of five hours.
In other parts of the world, short haul flights are operated with smaller fuel efficient planes. He said all these would be put into consideration before the deal is sealed.
