The Oba of Lagos, Rilwan Akiolu has called on the federal government to make special arrangement with banks so that Nigerian airlines could access long-term credit facility at single interest rates.
The Oba said this would help the airlines to acquire new aircraft and operate profitably, noting that presently the indigenous carriers find it extremely difficult to make profits in their operation because of the difficulty in obtaining loans which are usually short term and at outrageous interest rates.
He explained that many Nigerian airline operators would find it difficult to acquire new aircraft without such credit facility, adding that in other parts of the world government support their airlines because of the critical role they play in the growth of every nation’s economy.
Akiolu who spoke to journalists in London during the ceremony to mark the inaugural flight of Medview Airline to the UK capital, said for Nigeria to correct the imbalance in international flights, which is presently dominated by foreign carriers, government must have to support Nigerian airlines that operate international destinations.
“I advise the federal government to assist Nigerian airlines on international routes in order to strengthen their operation. Alhaji Muneer Bankole (CEO of Medview Airline) spent better days of his life with the former Nigerian Airways and he was very dedicated to his job and that is why God has helped him to grow this airline.
“Many Nigerians professionals are dedicated to their jobs, but the financial supports to grow their companies are lacking most times and that is why I want to appeal to President Muhammadu Buhari to go all out to see how we can raise very heavy money on a soft loans to the indigenous carriers to acquire brand new aircraft to upgrade their operations. It is not in our best interest to buy refurbished aircraft.
“Let the government guarantee the airlines through the aviation intervention funds for the operators. I can tell you the money would be recouped because the traffic is there for us in the country. I will use this medium to appeal to the federal government to come to the aid of the operators and I know Buhari as a determined leader when he sets out his mind to do something, he will not only do it well, but to the best interest of Nigeria,” the Oba of Lagos said.
The Oba also complained that the insurance premiums for Nigerian airlines are high because of what the insurance companies refer to as high risk assessment or volatile environment and noted that air accidents could be curbed in Nigeria with effective regulation, efficiency, the right training and modern and airworthy airplanes.
“As I said earlier, there is no one that prays for a crash, but if the aircraft are new and the technical crew are well trained, the rate of accidents would be minimally reduced. That is why I want to appeal to the insurance brokers to see how they can reduce the insurance premiums charged the operators. Nigeria market is very profitable, the wherewithal and the market are there and that is why they are all running to our market. The insurance brokers make their money in our country and that is why I want to appeal to them that wherever you make much profit, you should also endeavour to return some back to the country. They should see how they can reduce their premiums in the best interest of the airlines and their own business,” Akolu said.
The Oba also advised the airlines to be transparent in their dealings and do the right thing to ensure safe operation.
“When we were coming on Friday, the flight was smooth and as Bankole said, you don’t start aviation business with blood money, but your hard earned money and supported by prayers, your operations would boom. That statement is very important for the development of the business. I want to appeal to Nigerians in London to patronize Nigerian airlines on the route,” Oba Akiolu said.
