Why Fed Govt is supporting indigenous airlines, by Keyamo
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Why Fed Govt is supporting indigenous airlines, by Keyamo
.......United Nigeria Airlines boss canvasses reduction in aviation charges
Keyamo said the Tinubu administration since inception continues to consolidate its strategies to firm up policies through engagement with indigenous airlines, the industry's regulators, international partners , such as aircraft manufacturers , lessors and others to rally support for Nigerian airlines.
Speaking at the unveiling of named after the Obi of Onitsha, Igwe Nnaemeka Achebe, and the late literary icon, Prof. Chinua Achebe.
Keyamo said the government will not renege in its intervention to provide sovereign cover for local airlines in their acquisition of aircraft from both lessors and aircraft manufacturers.
He said before the emergence of the Tinubu administration , many international organizations, banks and aircraft lessors , were not interested in sealing deals with local airlines.
But, with change of strategy driven majorly around engagement, the right policy framework and the relevant legal instruments, lessors and aircraft manufacturers are now ready to do business with Nigerian carriers.
He expressed confidence that with the new arrangement, Nigeria is securing the right partnerships to pull companies such as Boeing Corporation and others in to support the growth of aviation business in Nigeria.
But, to consolidate the growth, Keyamo said there must be change in tactics, requiring that the Federal Government engage indigenous carriers by providing the necessary support for them to thrive and optimize the increasing number of passengers both on the regional and international routes.
He said it is for these reasons that the Federal Government is designating more indigenous airlines/flag carriers on major international routes.
The minister ruled out the establishment of a national carrier for Nigeria, insisting that government-owned airlines cannot thrive under bureaucratic and political control.
The minister said investing public funds in a national airline would amount to pouring resources into a “bottomless pit,” stressing that governments across the world are moving away from direct ownership of airlines.
“We don’t have a national carrier, but we are proud of our flag carriers,” Keyamo said.
“All over the world, governments are divesting from national airlines. It is neither reasonable nor practical to run a national airline under a bureaucratic and political leadership. Such an arrangement is bound to fail.”
He cited examples of globally recognized airlines that operate independently of government bureaucracy, arguing that Nigeria’s aviation policy is firmly focused on supporting privately owned indigenous carriers.
“We are not confused about where we are going. We are very clear about our policy direction. It is far better and more profitable to support our flag carriers than to own and run a national airline,” he added.
The minister noted that the few successful state-backed airlines, including Ethiopian Airlines, operate with significant commercial independence and are insulated from political interference.
“A few that are succeeding, such as Ethiopian Airlines, are completely detached from bureaucracy and run strictly as commercial enterprises,” he said.
“As a government, we are struggling to mobilise resources for other critical sectors of the economy. We cannot afford to invest in a national airline that could become a drain on public funds.”
“All over the world, governments are divesting from national airlines. It is neither reasonable nor practical to run a national airline under a bureaucratic and political leadership. Such an arrangement is bound to fail.”
He cited examples of globally recognized airlines that operate independently of government bureaucracy, arguing that Nigeria’s aviation policy is firmly focused on supporting privately owned indigenous carriers.
“We are not confused about where we are going. We are very clear about our policy direction. It is far better and more profitable to support our flag carriers than to own and run a national airline,” he added.
The minister noted that the few successful state-backed airlines, including Ethiopian Airlines, operate with significant commercial independence and are insulated from political interference.
“A few that are succeeding, such as Ethiopian Airlines, are completely detached from bureaucracy and run strictly as commercial enterprises,” he said.
“As a government, we are struggling to mobilise resources for other critical sectors of the economy. We cannot afford to invest in a national airline that could become a drain on public funds.”
Industry stakeholders at the event described the naming of the aircraft as a reflection of the airline’s cultural identity and commitment to national unity, noting that it strengthens the emotional connection between the carrier and Nigerians.
keyamo said the Federal Government will continue to encourage the development of aviation in states affirming that before the end of the year, international cargo flights will begin between Enugu and Guangzhou in China.
He said discussions are firming up on the aircraft that will be used to facilitate the distribution of cargo into the South East.
Keyamo also commended the Abia State Governor, Dr Alex Otti, who has been working round the clock to see to the upgrade of the air strip in the state into a full scale airport. Keyamo said the state government has contributed significant funds to see the airport project to the level of completion of the runway.
Chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, expressed concern over the high cost of doing business in Nigeria’s aviation sector, warning that rising interest rates and multiple charges are eroding the competitiveness of local airlines.
According to him, Nigeria remains one of the most expensive countries in the world for airline operations, citing findings by the International Air Transport Association (IATA).
“We are not happy that Nigeria has been described by IATA as one of the most expensive places for airlines to operate. We are hopeful that the government will respond positively to calls for a reduction in charges,” Okonkwo said.
He also advocated reforms in the sector’s revenue framework, arguing that funds generated by aviation agencies should remain within the industry to support infrastructure development and improve service delivery.
“Government should allow aviation revenues to remain with aviation agencies. When those funds are diverted elsewhere, it creates pressure on agencies such as the NCAA, FAAN and NAMA, which then pass the burden to operators through higher charges,” he said.
Okonkwo further highlighted aviation’s strategic role in supporting key sectors of the economy, particularly oil and gas operations that depend heavily on helicopter services.
He identified access to affordable financing as one of the biggest challenges facing domestic airlines, calling for the introduction of single-digit interest loans to support fleet expansion and business growth.
“What commercial banks offer is purely commercial funding at very high rates. The Bank of Industry has been supportive, but its intervention funds are limited. We need government-backed opportunities for single-digit financing,” he said.
The airline chairman also disclosed plans to expand United Nigeria Airlines’ fleet, announcing that two additional aircraft would join its operations in August under a full dry lease arrangement.
“In August, we will celebrate the arrival of two more aircraft on full dry lease. It will be the first such acquisition in about 15 years. Very soon, we will gather again to celebrate another aircraft addition,” he said.
In his remarks, the Obi of Onitsha,Igwe Nnaemeka Achebe expressed appreciation for the honour bestowed on him and the late novelist, , through the naming of the aircraft.
“I am overwhelmed and delighted to witness this occasion and celebrate our son and brother on the unveiling of these aircraft. It is a great honour that my name will be inscribed on one of them alongside that of Chinua Achebe,” the monarch said.
He commended the resilience and commitment required to succeed in the aviation industry, describing it as one of the most demanding sectors globally, and urged stakeholders to continue driving innovation and growth within the industry.
“We are not happy that Nigeria has been described by IATA as one of the most expensive places for airlines to operate. We are hopeful that the government will respond positively to calls for a reduction in charges,” Okonkwo said.
He also advocated reforms in the sector’s revenue framework, arguing that funds generated by aviation agencies should remain within the industry to support infrastructure development and improve service delivery.
“Government should allow aviation revenues to remain with aviation agencies. When those funds are diverted elsewhere, it creates pressure on agencies such as the NCAA, FAAN and NAMA, which then pass the burden to operators through higher charges,” he said.
Okonkwo further highlighted aviation’s strategic role in supporting key sectors of the economy, particularly oil and gas operations that depend heavily on helicopter services.
He identified access to affordable financing as one of the biggest challenges facing domestic airlines, calling for the introduction of single-digit interest loans to support fleet expansion and business growth.
“What commercial banks offer is purely commercial funding at very high rates. The Bank of Industry has been supportive, but its intervention funds are limited. We need government-backed opportunities for single-digit financing,” he said.
The airline chairman also disclosed plans to expand United Nigeria Airlines’ fleet, announcing that two additional aircraft would join its operations in August under a full dry lease arrangement.
“In August, we will celebrate the arrival of two more aircraft on full dry lease. It will be the first such acquisition in about 15 years. Very soon, we will gather again to celebrate another aircraft addition,” he said.
In his remarks, the Obi of Onitsha,Igwe Nnaemeka Achebe expressed appreciation for the honour bestowed on him and the late novelist, , through the naming of the aircraft.
“I am overwhelmed and delighted to witness this occasion and celebrate our son and brother on the unveiling of these aircraft. It is a great honour that my name will be inscribed on one of them alongside that of Chinua Achebe,” the monarch said.
He commended the resilience and commitment required to succeed in the aviation industry, describing it as one of the most demanding sectors globally, and urged stakeholders to continue driving innovation and growth within the industry.
The Governor of Abia, Dr Alex Otti, commended the airline and expressed optimism that the proposed Abia Airport would serve as the airline’s operational hub.
Also speaking, the Director-General of the Nigeria Civil Aviation Authority (NCAA), Capt. Chris Najomo said the aircraft was fuel-efficient, suitable for four-hour flights, and offered enhanced passenger comfort.
Also speaking, the Director-General of the Nigeria Civil Aviation Authority (NCAA), Capt. Chris Najomo said the aircraft was fuel-efficient, suitable for four-hour flights, and offered enhanced passenger comfort.
Also, Mr Moore Ibekwe, Executive Sales Director for the African Region at Boeing, said the acquisition would enhance the airline’s operational capacity.
Ibekwe also lamented the high cost of aviation financing from commercial banks, noting that interest rates in some countries remain as low as six per cent.
The event attracted aviation stakeholders, airline executives, government officials and traditional rulers, who commended the airline’s expansion efforts and expressed optimism about the future of Nigeria’s aviation industry.
The event attracted aviation stakeholders, airline executives, government officials and traditional rulers, who commended the airline’s expansion efforts and expressed optimism about the future of Nigeria’s aviation industry.
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