FG to acquire planes for ailing aviation industry

FG to acquire planes for ailing aviation industry

In order to assist the ailing aviation industry and boost domestic flights the Federal Government is making arrangement to acquire 30 aircraft.

General Manager, Corporate Communications, Federal Airports Authority of Nigeria (FAAN), Dati Yakubu, who revealed this Wednesday in Benin- City, said that the Federal Government would purchase the aircraft through the aviation fund being managed by the Central Bank of Nigeria (CBN) and the Bank of Industry (BoI).

“This is to help domestic airlines operate profitably and make it attractive for investors because spare parts are a major cost component in the aviation industry.”

He said direct disbursement of funds was being abused hence the Federal Government decided to acquire the aircraft and hand them over to local airline operators.

According to Yakubu, “the issue of assisting domestic carriers is important and that is why the Federal Government removed tariffs and taxes on aviation spare parts.

“We have given the ultimatum for the owners of abandoned aircraft to remove them because they constitute menace to our airspace and airports,” he said.

Said Yakubu, “They are dangers to the flying publics because they may be places where these birds could hide. We have also discovered that some of the aircraft have litigation issues around them, some of them were used as collateral for loans.

“Such things are being handled by our legal department and as soon as those issues are resolved, the planes will be moved. We also try to advise owners that there are several creative ways in which they can use them. We are in the age of recycling and they are built with plastics and metals and that can be done profitably.

“But definitely, when the period we give elapses, FAAN will take action to ensure that we clear our spaces of abandoned aircraft because it does not fit into the aviation master-plan.”