Relief may have come the way of domestic airlines as the African Import Export Bank (Afreximbank) and the Russian Export Centre (REC) have partnered to bring Russian aircrafts into Nigeria.
Through the scheme, Nigerian airlines would be able to acquire Russian aircrafts by paying between 10-15 percent of the total value of the aircraft and take ownership of the equipment.
Though Russian aircraft are alien to Nigeria, the bank would interface with the regulatory authorities to certify the planes to operate on Nigerian soil.
This emerged on Wednesday at the seminar and roadshow organized to raise awareness on Russian aircraft and helicopters in Africa.
Afreximbank which is a trade finance bank on the African continent sealed the deal to bring Russian planes to African territories in order to boost air transportation in Africa.
The Bank’s Global Head for Client Relations, Rene Awambeng at the road shows and exhibition of the Russian aircraft in the presence of airline operators said Russian aircraft were equipped with state-of-the -art facilities and fuel efficiency.
He said the deal with the Russian Centre would assist airlines and government in having low-cost carriers in the country.
Awanbeng said, "We have entered into a strategic partnership with the Russian Export Centre, which is the export bank of the Russian federation to promote aviation in Africa, so that we can meet one of our strategic goals. The Russians have invested significant amount in research and development in their aircraft which are very efficient in terms of fuel consumption which are ecologically very friendly.
"This (the aircraft) is a blend of Italian, French and Russian technologies, it is very spacious. They are for regional routes. They can take up to 100 passengers in different configurations of business class and economy. The aircraft are quick in take-off and landing, which means they can service short distances. These are brand new aircraft."
Chairman of Airline Operators of Nigeria (AON), Capt. Nogie Megisson described the Afreximbank’s intervention as a big relief for airlines operators as they can now pay between 10-15 percent deposit to acquire the aircraft.
"With Afreximbank coming in now, to lease the aircraft, we will be asked a 10 to 15 percent deposit of the actual value of the aircraft. The cash flow immediately gets better and we will have disposable income to take shock. So you can afford to pay a six months lease or put a deposit of 10 percent and still have cash in your pocket", he said.
Megisson however suggested that the manufacturer should set up a Maintenance Repair and Overhaul (MRO) base in the country to aid the process of maintenance and access to spares, while advocating for transfer of the technology.
He said, "We have always asked that we have access to brand new aircraft. With Afrexim Bank coming into the picture to finance it, it opens a new chapter for us into acquisition of brand new aircraft. Our problems in Nigeria as carriers are our financial structure and access to markets. You cannot finance an aircraft like this using 26 percent from the Nigerian banks.
"We need to put the maintenance base first, then you get the skilled labour before talking about the lease of the aircraft. Training is key in this and by doing this, you will now create jobs and become competitive."