Festus Keyamo, the Minister of Aviation and Aerospace Development, has affirmed the Federal Government’s commitment to aiding airlines in the country to obtain long-term aircraft leases at competitive rates, aligning with global industry standards.
During an interview at the inaugural event for the Air Peace Lagos-London flight over the weekend, the Minister underscored the government’s dedication to assisting domestic airlines in their international pursuits and pledged to address any impediments hindering their operations on any route.
Keyamo emphasized that facilitating Nigerian airlines’ access to long-term leasing and reducing the cost of aircraft insurance were pivotal performance metrics for his Ministry. These Key Performance Indicators (KPIs) are aimed at bolstering domestic airlines and preventing the exploitation of Nigerian travelers by foreign carriers.
“This is very significant because it has been very difficult for our local operators to service international routes and to take advantage of our Bilateral Air Service Agreements (BASAs), which give reciprocal rights to our local airlines,” he remarked.
He elaborated on the essence of BASAs, highlighting that they are based on the principle of mutual benefit, allowing airlines from one country to operate flights to another country while reciprocally granting airlines from the latter country the same privilege. Keyamo stressed that flight arrangements under BASAs are mutually agreed upon.
“Beyond that too, our local operators are handicapped because they don’t have access to aircraft that international airlines have on the same terms. For example, the terms upon which they lease these aircraft. There is no airline in the world that buys their fleet 100 percent. It is not possible,” Keyamo explained.
“Statistics say that out of 100 aircraft flying around the world, about 70 percent of those aircraft are on dry lease from leasing companies and aircraft manufacturers. So, why can’t we take advantage of these lease arrangements to empower our local operators? And that is the key to also servicing these international routes because you cannot compete with someone who has access to aircraft on better terms than you,” he added.
