- Targets 50 aircraft after 7 years
Following the approval by the Federal Executive Council for the establishment of an Aviation Leasing Company (ALC) under Private Partnership (PPP), the Infrastructure Concession Regulatory Commission (ICRC) has said that the move will alleviate the problems of aircraft/engine leasing, costly lease rates and high insurance premium charges to Nigerian airlines as well as limiting capital flight and the strong demand on forex.
This is just as it said the ALC will commence operations with leasing 8 aircraft in its first year of operation and increase the portfolio as it grows to 50 leased aircraft.
The approval was granted following the issuance of Full Business Case (FBC) compliance certificates by the Infrastructure Concession Regulatory Commission (ICRC), the agency statutorily established to regulate PPPs.
In a statement signed by Ifeanyi Nwaoko the ALC will be executed by Messrs AJW Consortium as concessionaires, and would seek to provide an opportunity for local leases of aircraft to both domestic and international carriers, alleviate the problems of aircraft/engine leasing, costly lease rates and high insurance premium charges to Nigerian airlines.
The statement further read in part, “It will facilitate the ease of doing business for foreign lessors with Nigerian domestic Airlines being a one-stop-shop thereby limiting capital flight and the strong demand on forex.
“The project will create employment opportunities for Nigerians which will have a multiplier effect on the economy. The ALC will provide leasing opportunities for Nigerian and African Airlines to boost their fleet size, alleviate the problems of aircraft leasing and high insurance premium charges, provide an alternative to foreign lessors and introduce competition which would relax the terms and conditions currently obtainable, thereby facilitating growth and development.
“The ALC will commences with leasing 8 aircraft in its first year of operation, increasing the portfolio as it grows to 50 leased aircraft after the 7th year and remains constant at 70 leased aircraft by 2034. The ALC then starts to purchase aircraft outright after approximately seven years, once the portfolio exceeds 50 leased aircraft”.