Managing Director of the Federal Airport Authority of Nigeria (FAAN), Mr. George Uriesi, has said the Federal Government did not intend to release money to the airlines in the next intervention fund but to use the money to acquire new aircraft from aircraft manufacturers.

Speaking with journalists in Lagos on Tuesday, he said the airlines that would benefit from the intervention would only enjoy such privilege based on stringent conditions.

[b]"Federal government is not buying any number of aircraft that as it is being rumoured, government is just negotiating with aircraft manufacturers to supply brand new aircraft at globally competitive price to airlines and funds to make the purchase will be provided by the government."

Uriesi debunked the claim about the purchase of 30 aircraft but confirmed the move on negotiating with aircraft manufacturers as part of the road map designed by the Ministry of Aviation to rescue the ailing sector.

He claimed that funds to buy these aircraft would be provided on very low interest rates instead of just giving the airlines funds from the intervention funds as it has been done twice before with no commensurate improvement in the sector.

Uriesi said the interest rate would be single digit, remarking that when the airlines would be given this lifeline government would then address issue of old aircraft that are plying the Nigerian airspace.

Speaking also on the issue of national carrier, the FAAN boss denied reports that the Federal Government would be launching a new National carrier this year but however hinted that a merger of some notable airlines in the country would occur in the first quarter of the year and this merger would give birth to a national carrier that would be managed by the private sector.

"The Federal Government will not launch a new national carrier but it will help some new companies access funding to build a new national carrier" Uriesi also said.

He said that a couple of airlines would come together by March 2013 to emerge as the national carrier, adding that the conditions that would enhance these developments were currently being put together

Part of the stringent conditions to access the scheme would be a thorough corporate governance structure within the prospective airlines.

When asked whether any airline in the Nigerian aviation sector would be able to meet up to the stringent conditions at present, the FAAN boss claimed that the benefit of this new policy would be too good an offer, which would in turn make the airlines strive to operate with higher standards.
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source: http://allafrica.com/stories/201302011310.html

Seems fair, at least my fears has been debunked - they're not buying the aircraft nor are they setting up national carrier. However, they are providing the financing funds directly to the manufacturers at single digit interest + national carrier is a merger of private run airlines.

The FG has no business buying aircraft or providing funding for manufacturers to buy aircrafts. We know say all na wash

Na dem business βε dat

Who says Goodluck Jonathan is clueless

Kk

onye ego: Who says Goodluck Jonathan is clueless

Mtwwww, u says GEJ is not clueless?

How about 40billion intervention funds released to Jomon Ibrahim to run Air Nigeria?

Any success story yet,I bet he diverted the funds to recapitalise his Energy Bank In Ghana.

This Government will never sieze to morgage our future.

let dem ride on

Shoor! Another one? This will make it how many aircrafts purchased in a single administration? 13?

[quote author=CFCfan]Managing Director of the Federal Airport Authority of Nigeria (FAAN), Mr. George Uriesi, has said the Federal Government did not intend to release money to the airlines in the next intervention fund but to use the money to acquire new aircraft from aircraft manufacturers.

Speaking with journalists in Lagos on Tuesday, he said the airlines that would benefit from the intervention would only enjoy such privilege based on stringent conditions.

[b]"Federal government is not buying any num

Why can't government use this fund to fix our ailing refinery or build a new one. I now belive they are clueless even with their numerous advisers. I guess it's another conduit pipe for milking the nation.

Good move

Confused people, this is an after thought following the public uproar on their initial plans to purchase 30 aircrafts for the airline operators. We will wait for the next two years supposedly if there are buying brand new.

ifihearam: Good move

in what way is this good move? Please explain.

Gej is untop of the situation!

Who ever said Gej is not trying na elaphant! And surely the eagles will eat them up
God bless Nigeria

Awwh! I overlooked the topic... Seems i saw something like'How to purchase airline ticket cheap' lol...

Rawbissssh! Them no fit use the money build New refinery? Misplaced priorities

2bosun: The FG has no business buying aircraft or providing funding for manufacturers to buy aircrafts. We know say all na wash

You just indirectly tell the reading public you've never fly any of the 'flying coffin' paraded as airplanes in Nigeria presently but if this same old airplanes developed fault in the air and eventually crash and lead to loss of lives and properties, people like you will still be blaming the government for not responding appropriately to the plight of airline operators.

Na wa for una!

Maxymilliano:

You just indirectly tell the reading public you've never fly any of the 'flying coffin' paraded as airplanes in Nigeria presently but if this same old airplanes developed fault in the air and eventually crash and lead to loss of lives and properties, people like you will still be blaming the government for not responding appropriately to the plight of airline operators.

Na wa for una!

SMH, so is this the sort of intervention needed to prevent airline disasters??

I weep for you

rico_73: Why can't government use this fund to fix our ailing refinery or build a new one. I now belive they are clueless even with their numerous advisers. I guess it's another conduit pipe for milking the nation.

i never new u ar this dull,i spit on d floor 4 u,so u want them to use d money that was budgeted for airline to overhaul our refiney.even in graveyard u cant be as briliant as GEJ

Hehe, they are negotiating with Aircraft manufacturers ... Boeing order books are full and barely have time for a government ridden with Fraudsters... Airbus order books are full and before you can get slots, you have to pay 1.5 times the actual cost of aircraft.

I guess they are going after Bombardier whom I believe also have a large order book spilling over. So where are they going to source these aircrafts from?..Ahhh.. Tokunbo from the likes of Kingfisher Air

This is the height of contradiction!

The FG has no business buying aircraft or providing
funding for manufacturers to buy aircrafts. We know say all na wash
Exactly my point!What is the matter with this government?

What a load of bullpucky!! Why would the bloody government by planes for the aviation industry? Why is'nt common sense common? If the government wants to encourage more airlines in nigeria, reduce to the bearest minimum taxes and fees airlines pay to faan, remove the stupid levies imposed on air travellers by faan for "airport maintenance" and watch how they'll flood in. Please use that money on suffering nigerians who need it!! Hogwash government!!

Shiooor. Intervention indeed. Like the have been intervening in electricity, road, transportation, oil and so on. Why should a FG buy planes for the aviation industry? Dolts.

Good initiative provided the money would be put into good use.

Wonder when I will stop seeing empty criticisms flying around. People just criticize govt policies without offering better options. How can we say people are driven by patroitism