New Aircraft Leasing Policy Boosts Nigeria's Aviation Industry

Strategic Insights -

The new aircraft leasing policy signed by Minister of Aviation and Aerospace Development, Barr. Festus Kayamo, has started yielding positive results, with Nigerian Aviation Civil Authority (NCAA) reporting that airlines are already benefiting from the policy. The policy, which aims to increase fleet capacity and reduce flight cancellations, has removed Nigeria from the Cape Town Convention (CTC) index, making it easier for airlines to access aircraft leases.

Key Takeaways:

  • The new aircraft leasing policy signed by Minister Festus Kayamo has already started yielding positive results, with airlines benefiting from the policy.
  • The policy has removed Nigeria from the Cape Town Convention (CTC) index, which was below 49 percentage, making it easier for airlines to access aircraft leases.
  • The implementation of the Irrevocable De-registration and Export Request Authorization (IDERA) protocol has increased Nigeria's CTC index, making it easier for airlines to access leasing companies.
  • Airlines have started benefiting from the policy, which aims to tackle the problem of flights cancellations mostly caused by shortage of aircraft in operations by airlines.
  • The policy has made Nigeria more attractive to leasing companies, making it easier for airlines to access aircraft.
  • The Director of AIRTRAN Regulation at NCAA, Mrs. Olayinka Babaoye-Iriobe, stated that Nigerian airlines are viable and financially sound, with regular economic and financial audits to ensure safety.
  • The process of acquiring airline licenses and renewal has become easier and more accessible, as long as the airline operator meets all the required regulations and requirements.

Statistics:

  • Nigeria's CTC index has skyrocketed since the implementation of the IDERA protocol, making it easier for airlines to access leasing companies.
  • 49 percentage was the previous CTC index before the implementation of IDERA, which made it difficult for airlines to access leasing companies.
  • 1 airline was mentioned as having implemented IDERA successfully, making it easier for them to access aircraft leases.
  • Airlines have started benefiting from the policy, with airlines able to access aircraft leases more easily.

Sources:

  • "Nigerian Aviation Civil Authority (NCAA)"