Friday 28 June 2013

Airline operators appeal to FG for low cost loans

Aviation Nigeria

Airline operators have began an appeal to the Federal Government for low cost loans which they say will help keep them afloat.

Speaking on the needs of airline operators, the Chief Executive Officer of Overland Airways, Captain Edward Boyo stated that the problems of domestic airline operators include low capacity of funding institutions, which hampers aircraft acquisition and high lending rates to airlines which have created a major challenge for many operators and increasing lease rates.

“The problem that operators have is high financing of aircraft. This is a problem in Nigeria and Africa, generally. We have lower financing costs in Europe and more advanced countries." Boyo said.

He added that the last intervention fund had a good intention from the government, but many airlines did not get the cash.

"The banks that were generous in funding the airlines got into trouble. Even despite the intervention, to show you how deep airlines were in the negative, the intervention fund was not sufficient." He added

Others, according to Boyo, are prohibitive maintenance costs, high import duties and taxes on aircraft parts, which add to operators’s piralling cost.


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