Engineer Isaac Balami champions local MROs as a solution to capital outflow, offering cost-effective alternatives.
In an exclusive interview with NigerianFLIGHTDECK, Balami highlights how local maintenance can stabilize currency rates, easing forex pressure.
He emphasizes the benefits: reduced logistical costs, optimized operations, job creation, and skill development.
“By opting for local maintenance services, airlines can circumvent significant logistical costs incurred when ferrying aircraft overseas for upkeep, thus optimizing operational efficiency and resource allocation.
“ By patronizing local MRO facilities like 7-Star Global, airlines contribute to job creation, skill development, and knowledge transfer within the Nigerian economy,” he said.
Capital flight, previously at $2.5bn, has tripled due to the naira’s depreciation.
Balami compares costs with foreign MROs, arguing for the savings potential of utilizing local MRO services like 7-Star Global.
Using $1 to ₦1500 as exchange rate maintaining the MD-83s and Boeing’s are $500,000 to $1.5 million approximately ₦750,000,000 to ₦2,250,000,000 while the ATRs 42 & 72 are $200,000 to $700,000 = ₦300,000,000 to ₦1,050,000.
The 7-Star Global boss argued that the figures appear substantial in Nigerian Naira. However, he stresses that these costs are not solely determined by the exchange rate but also by factors such as labour costs, overhead expenses, and regulatory compliance.
Story Excerpts from the full interview to be published soon.
