Godogwu: When it comes to the Nigerian Government's decisions everyone becomes a critic.

vanstanzy:

Dude, the FG has shown us over the years what they are capable of doing with tax-payers' money. So the criticism is justified.

vanstanzy:

Dude, the FG has shown us over the years what they are capable of doing with tax-payers' money. So the criticism is justified.

yinchar: I dont understand all this saying about imminent collapse are the airlines not making profits, Nigeria domestic airfares is one of the highest in the world....still they are going bankrupt, this is very ironic......

Dee60:

Cost of doing business in Nigeria is too high, that's why. It isn't just the airfares, everything else is expensive. You will pay 500 dollars for a hotel room here and same size abroad is just about 90 dollars. Corruption worsens it all...Egunje spoils things.

1supremo: The only thing I see is the creation of opportunities for some persons to embezzle! What a country!! Achebe says "THERE WAS A COUNTRY"- not anymore.

billante:

It was learnt that the National Executive Council (NEC) made up of state governors, minister of Finance, Ngozi Okonjo-Iweala, Central Bank of Nigeria (CBN) governor, Sanusi Lamido Sanusi, and chaired by  vice president Namadi Sambo, particularly harped on the need for such intervention, at a meeting held in Abuja last week.

samfibby: less than 10% of nigerians patronize air transport, the govt is willing to invest 300 billion naira, whereas the rail transport which has the potential to transport more than 40% will do well with 100 billion naira if well channeled. The govt just doesnt get its priority straight. These kind of decisions are responsible for keeping a large percentage of nigerians in perpetual poverty. The bail-outs given to the banking sector have not brought about significant change, now the the aviation sector wants its own share of the cake. Clueless and corrupt leaders. The question is how much of that money will go as kick backs to the governors and executives.

werepeLeri:

and when America gave intervention funds to Auto industries to bail them out - what happened? What has government intervention got to do with privatisation.

http://useconomy.about.com/od/criticalssues/a/auto_bailout.htm

You people will criticise any move with half baked inputs, no contrary suggestion, nothing intelligent - just half baked comments that doesnt make meaning neither involves any thinking - example, "the government is confused" - what kind of contribution is this? Haba? Even if the government is confused, what other opinion can you share that makes you better than them or better than what they are offering?

Omo_Tier1: If there's any iota of truth in this report, may I add that Aircraft is not like toys you go to shop to buy from the shelf! I know too well that the main global Aircraft Manufacturers have their order books fully booked especially on the "sweet" aircrafts e.g B787-8, A320Neo, A330, B737MAX etc. This tells me FG will either end up buying "tokunbo" aircraft from those European Airlines undergoing bankruptcy or from those American airliners whose ageing aircraft have been parked in the deserts or buy from Leased companies at Astronomical costs at the expense of Nigeria tax payers!

Why can't FG follow China's model whereby the Chinese national government through her ExIM bank grant cheap credits to Airliners of Chinese origin, with strict monitoring, ensuring that they get the best deal from the Aircraft manufacturers they choose to buy from?

Imagine if FG was to make a deal with Airbus or Boeing ordering fro 100 Aircraft of various sizes with commensurable reciprocal investment by these aircraft manufacturers in Nigeria e.g. build an MRO facility for their plane or build a sub-assembly line in the country?

Iolo:

I think your mixing things up. What they would do is to place approximate funds for 30 aircraft with the CBN. Each Airline is then to negotiate with an aircraft .manufacturer or leasing company. When they've agreed on the details, the airline memos the CBN to make payment on its behalf.

Its totally up to each airline to buy good or dead aircraft. And seeing that its a loan and not dash, non of the airlines would want to buy scrap.

Omo_Tier1:
I take it your response clearly portray that you know little or next to nothing on what is involved in the purchase of commercial aircraft of the like of B737. N300BN intervention fund previously given was 'dash' or 'loan'? What is the business of CBN in this matter, if at all, shouldn't it be the business of the NExIM and in whose portfolio this sums should be deposited? NExIM is there to fund imports and exports projects of which this clearly belongs.

What is clear is this, order books are full, and if any, most of the aircraft available for sale not lease are tukunbo aircrafts or Aircraft rejected by those who initially ordered for it for several reasons. Lets not kid ourselves, several countries have privately owned and well run airlines with little or no state aid except with proper regulation and over-sight! Why is Nigeria case so different? The reason the likes of Arik et al can not survive is not the number of aircraft in their possession, mainly it is due to FG lack of grasps of the regulation frame work and proper over-sight required for the industry to function properly. Why is Aviation fuel more expensive in Nigeria than most neighbouring countries? Why are our landing fees exorbitantly priced without a commensurate investment in aviation infrastructure?

If the FG like buy 10000 aircraft, if the necessary government over-sight and proper regulation is not adequately addressed, the industry will always come begging for more. Aviation is one business that is very cash consuming yet highly profitable if the government plays the sole role of regulations with selfless interest. Of course we know the current FG lacks what it takes to put such in place, hence the cheap way out that would benefit the wealthy is to pour huge sums into purchase what will most likely be tokunbo aircraft. Like we come to know with GEJ's government, huge sums is expended on issues without much thinking.