FG assures lessors of aircraft recovery if Nigerian carriers default in payment of rentals

The Federal Government has agreed to guarantee aircraft leasing companies the recovery of their assets leased to Nigerian airlines in the event of likely default in the payment of lease rentals.

Lease rentals are payment made by airlines for aircraft hired for their operations from leasing companies.

The Minister of Aviation, Festus Keyamo gave the assurance when officials of the Boeing company, the manufacturers of Boeing air planes and officials of Aercap, the world’s biggest aircraft leasing company, led by the Chairman , Air Peace, Dr. Allen Onyema, paid him a courtesy visit.

Boeing and Aercap expressed the willingness to offer Nigerian carriers dry lease opportunities if certain conditions were met by the country.

The PAPERS recalls that the biggest airlines in the world thrive on their partnership with Lessors through dry leasing and other forms of financing for their aircraft acquisitions.

But, Nigerian airlines have been navigating difficult curves for over a decade by lessors worldwide, which have unofficially blacklisted them from such opportunities.

Global lessors claimed that the country had not helped in the recovery of aircraft from defaulting airlines in Nigeria.

The Minister of Aviation expressed the willingness and desire of the Federal Government of Nigeria to strengthen the capacity of the indigenous Nigerian airlines to compete on the global stage.

On this, he reiterated the resolve of the Federal Government to guarantee the release of Lessors’ assets to its owners from any defaulting Nigerian airline.

Keyamo, during the meeting, said his decision to enable lessors to afford Nigerian airlines dry lease options was in line with the plans of the federal government to boost the capacity of Nigerian airlines to enable them to compete effectively in the international air transport market.

He assured Boeing, Aercap and other lessors that the federal government would guarantee the release of their assets from any Nigerian carrier whenever there is a default and emphasized that this is a new era and a new government, which has the emphasis to create an enabling environment for Nigerian airlines.

The Minister gave the assurance that lessors would not be shortchanged over their assets; stressing that the government would do everything necessary to safeguard lessors’ assets from airlines in the case of default.

The Minister also emphasized that lessors should inform the government about the airline they are dealing with so that the government can carry out due diligence on the operator’s financial status and other vital records.

On his part, Chairman and Chief Executive Officer of Air Peace, Allen Onyema, thanked the Minister of Aviation and the federal government for the commitment to help Nigerian carriers by agreeing in principle to give such guarantees to lessors worldwide.

He said, “By the Minister’s promise today, the government has indicated that it is not paying lip service to its plan to provide lifeline and support to Nigerian airlines and a positive revolution in the aviation industry is now imminent”.

Onyema also commended the Minister on the stand he took for Nigeria on Bilateral Air Service Agreement (BASA) to protect Nigerian carriers during the just concluded 15th International Civil Aviation Organisation Air Service Negotiation (ICAN2023) held in Riyadh, Saudi Arabia where he led the country to, not only refuse the usual short-changing of the country through lopsided BASA agreements but, in one instance, walked out on a powerful nation that has disrespectfully refused to abide by the principle of reciprocity in her treatment of Nigerian airlines contrary to the BASA signed by both countries.