The Federal Government has concluded plans to deliver 30 brand new aircraft to the aviation industry to save it from imminent collapse. Analysts told BusinessDay last night the move may finally bring relief to domestic airline operators and travellers alike.

BusinessDay gathered that the deployment of new aircraft, which is the intervention government is planning for the sector, will be made by the aircraft manufacturers directly from their plants, to avoid the controversy that earlier trailed the N300 billion Aviation Intervention Fund.

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.

At the meeting, it was said that the governors unanimously agreed that the industry was in danger and posed grave consequences for the flying public, if urgent steps were not taken to rescue it.

Confirming the development to BuisnessDay on Monday, Joe Obi, special adviser on media to the Aviation Minister on media, said the only way to save the industry, was to act swiftly.

Obi said government was not happy with the way the last intervention fund was used, and wanted to ensure more prudence this time, and involve the manufacturers directly.

“The ministry is not happy with the way the first intervention fund was disbursed and used. This time, the intervention fund which we have proposed, and are now waiting for approval from the Presidency for,  is to the effect that when approved, the money will not be given to the airlines directly. They will not have access to it. Rather, the money will be given to aircraft manufacturers who will then deliver the brand new aircraft to Nigeria, where Nigerian airlines will have access to them.

“They will be given some criteria before they can access them, and we are working on those criteria. You know there has been a dearth of aircraft in the sector. This is the way we want to assist them this time around”, Obi said.

When asked to confirm a claim that government was planning to float four more airlines, apart from the planned national carrier, Obi said he could not give any information on another airline or operator, but said the plan to form a national carrier was progressing fast, adding that government was concerned about the sector.

“All I can tell you is that the plan to salvage the industry is on, the plan to bring 30 aircraft is on, the plan to establish a national carrier is on”, he added.

BusinessDay learnt that the plan would guarantee a fleet of three aircraft each, for about 10 airlines, as part of the intervention scheme for the aviation industry.

Beneficiaries, it was learnt, would include the up and running airlines, those that went out of business due to harsh economic pressures, as well as new operators that may be encouraged to come into the industry.

It was also gathered that there are plans to give the airlines some tax holidays, apart from renegotiating some bad debts owed banks, in order to revive the airlines.

Industry experts have hailed the move, saying it would go a long way in salvaging an industry that is in the ‘red’.

Steve Mahonwu, Airline Operators of Nigeria (AON) chairman, told BusinessDay yesterday :” The Federal Government is forward looking in aviation matters. Look at how they handled Dana Air matter. It did not allow the airline to die, soon Dana Air will fly again. If the government can buy and distribute the aircraft, in another five years, the airlines won’t be spending huge monies on maintainance.

In the last few months, passengers have struggled to get seats after paying ticket fares through their noses, because available aircraft cannot cope with demand, as the country has witnessed a big crisis in the sector, with a plane crash that took the lives of over 153 people, the collapse of one of its main international airlines, Air Nigeria, and a Central Bank order banning lenders from giving its main carriers more cash, until they repay existing debts.



http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/47113-fg-plans-30-new-aircraft-lifeline-for-airlines

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.

This is a welcome development and will be glad to hear of a new national carrier as well... It gives the citizenry pride to fly her own national airline

how will the 30 plane work? make them talk straight jare, abi which one be half report self.

That is a good plan by the FG.

Em how will this work, will the airlines lease the plane or will the govt have a stake in the airlines, please how will this work? Besides, how and why is the govt planning to float "FOUR MORE AIRLINES"? What has gone wrong in this country? Govt was unable to manage Nigerian Air, now they want to increase the wahala by x5? Na wa o, Nigerian govt, you people are too much.

My candid is advice is that they should stop this further wastage of our collective wealth and use this money to fix bad roads.

Clueless people. What happened to Nigerian Airways, Virgin Nigeria as well as Air Nigeria

Minion: Ur Unhappiness! The Nigerian Government is really doing a lot of good in the aviation industry. They've bought 30 planes!
Hades:30 planes huh! I see they have a very good population control system
Minion:Population Control!
Hades:Is it not the same govenment that bought loads of chinko drones from Isreal?! I just pity the Nigerians that will enter these floating coffins, they will just end up in my realm
Minion: It is true oooo!!! I almost forgot the chinko drones!!!!

Will fares reduce?
Will all old planes be banned from commercial flight?
Will they imbibe better maintenance culture?
Will d liners seriously take their customers' (in nigeria) safety first and treat them so?

Good move though.

99 percent of Nigerians can't afford air travel. What we need is investment in transport infrastructure which can be utilised by the average Nigerian - rail and road transport. This is another monumental waste of money.

The Federal Government is Confused

Obi said government was not happy with the way the last intervention fund was used, and wanted to ensure more prudence this time, and involve the manufacturers directly.

“The ministry is not happy with the way the first intervention fund was disbursed and used. This time, the intervention fund which we have proposed, and are now waiting for approval from the Presidency for, is to the effect that when approved, the money will not be given to the airlines directly. They will not have access to it. Rather, the money will be given to aircraft manufacturers who will then deliver the brand new aircraft to Nigeria, where Nigerian airlines will have access to them.

“They will be given some criteria before they can access them, and we are working on those criteria. You know there has been a dearth of aircraft in the sector. This is the way we want to assist them this time around”, Obi said.


FG is so unserious, they are not happy with how the last intervention fund was disbursed, yet no one was put in jail for that. From thirty aircrafts, they'll buy and disburse one to each airline, making ten, and as usual the remaining cash will end up in peoples pockets.
This is another "WHITE ELEPHANT PROJECT" i tell ya. GOD PLS SAVE NIGERIANS FROM THEMSELVES!

i just hope jimoh ibrahim will not have access to this because everything new turn old/dead in the hand of this man .

lol

Air Nigeria

I've always been a good critics of the Nigerian government. But sometimes we need to give them some credit for job well done. No doubt this will also create room for embezzlement but our major concern should be the 30 New aircraft. Indeed, this is a welcome development but i'd loved love if they do same in other sector like the Railway, transport industry et al.. We have alot of bad roads, not all Nigerians can afford to travel by air. My thought really.

If this info came from no other source than a special adviser to a minister then its not worth my time. Even promises made by his employers are yet to be fulfilled

manny4life: Em how will this work, will the airlines lease the plane or will the govt have a stake in the airlines, please how will this work? Besides, how and why is the govt planning to float "FOUR MORE AIRLINES"? What has gone wrong in this country? Govt was unable to manage Nigerian Air, now they want to increase the wahala by x5? Na wa o, Nigerian govt, you people are too much.

It is a LOAN or rather a guarantee that would involve d intervention fund domicile in d CBN to directly deal with the manufacturers who would supply d aircrafts and then any local airline that needs it would apply and can get it afta meeting some criteria; they would then pay back the money for the aircraft to the CBN over time depending on the prior arrangement with it. This just complements other moves by d Aviation Min and d FG to resuscitate d Aviation industry like the removal of duties/VAT in d importation of aircrafts (whole or spare parts) Or the remodelling of all existing terminals and d building of new ones..... Also, govt is not setting up 4 new airlines; private investors are doing so - 1 of dem has already been recently licensd. The govt is only overseeing the setting up of a National Carrier but it does not even intend to invest in it. The plan is to secure a top international airline that is technically sound as a core investor and then sell the oda shares to Nigerians in a public offer. Personally, i dont like d fact that d core investor wud be foreign and we wud still call it a National Carrier; mere sentiments i know but dat is how i feel. Anyways, i wish dis Aviatn Min who is one of d Ministers working well

FG and its misplaced priorities.
whatever happened to privatization??

manny4life: Em how will this work, will the airlines lease the plane or will the govt have a stake in the airlines, please how will this work? Besides, how and why is the govt planning to float "FOUR MORE AIRLINES"? What has gone wrong in this country? Govt was unable to manage Nigerian Air, now they want to increase the wahala by x5? Na wa o, Nigerian govt, you people are too much.

I think dey ar tryin to allow 4 other carriers to join d existing airlines

thats what you get when fools are in place of authority.
vote wisely

Joey82: FG and its misplaced priorities.
whatever happened to privatization??

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?

Why don't they just share d money... Before e enter story

4 Play: 99 percent of Nigerians can't afford air travel. What we need is investment in transport infrastructure which can be utilised by the average Nigerian - rail and road transport. This is another monumental waste of money.

Are you okay?..... Just say you cannot afford a plane ticket.

CORRUPTION is the problem with Nigeria. The airlines would not have failed if we did not have this magnitude of corruption. This new move may also go the way of other interventions if our level of corruption persists. Some airlines will be formed by civil servants who will be 'encouraged' to form airlines, and repayment may never happen. That pushes the country into bigger debts.30 aircraft at the rate of US$80 million each means US$2.4 billion. That is a lot of money to throw out to the boys. Well, at any rate it is not anything close to the oil subsidy missing funds (reference Aig, 2012).

4 Play: 99 percent of Nigerians can't afford air travel. What we need is investment in transport infrastructure which can be utilised by the average Nigerian - rail and road transport. This is another monumental waste of money.

I just hope you or any person related to you dont have to fly in any of them whenever they put them in place.

Will someone just say something intelligent for once?