In
a bid to retain home money being stashed away in foreign accounts for
aircraft acquisition by airlines, especially those in West Africa, there
is need for aircraft manufacturers to establish accounts with banks in
the region, to also make it easier for aircraft financing.
Oluwaseyi
Aremu Ajayi, chief executive officer of Avonheli, a company that
specialises in helicopter sales and services (Agusta, Bell, McDonnel
Douglas and Sikorsky) and private jets supply, among others, also said
Nigerian banks should rise to the occasion of aircraft financing, adding
that it eventually pays off for them and the economy.
Speaking
in interview with BuisnesDay, Ajayi noted that as a way of boosting the
economy, Nigerian airlines may not need to deposit huge money in
accounts abroad because they have ordered for aircraft while the money
is being used by other countries if there is what he called ‘regional
accounts’, say for airlines in West Africa.
“With
this account, airlines and manufactures can rest assured that the money
is still there while they wait for the aircraft to be delivered.
Nigerian banks too can give airlines money to acquire aircraft, What I
want from the Nigerian banks is that if they can buy these aircraft
outright and give them to the airlines that want them.
“If
it is for seven years’ payment, the bank tells you for instance that
every month you pay $7,000 and the interest on it is three percent.
Every month you keep paying that and for seven years you are done with
the payment. What the U.S. company does is, if you want to buy an
aircraft for instance $145 million, you spread it for seven years and if
you don’t pay back, they collect the aircraft and the money you paid is
gone.
“That
is the agreement they all have and when they have that type of
agreement with you, it pays off for Nigerian banks to finance and buy
that aircraft, give you the same terms. Once Nigerian banks give you the
same term, the Nigerian bank is not losing too, because they can also
get the aircraft back and give it to us and we will sell the aircraft
for them.
“For
instance, you can get a passenger aircraft for about $145 million and
if you get a full load on that aircraft like B777, you can make a
million dollars. You just need to fly that aircraft 145 times. After 145
times flown, the engine life is still there and it is still probably
new with the engine programme you have. A normal engine lifespan goes
for about 15 to 20 years. I think it can still fly for another 145
times, even 500 times on that aircraft and you will get your money back
as well as your profit back before you can resell it,” he said.
The
Avonheli boss, who is also into maintenance, hangar and helipads
construction, watercraft sales and pilot outsourcing, explained that the
market for helicopter services in Nigeria is huge adding that almost
every sector of the economy needs it for movement.
“The
market for helicopter operations and services is there in Nigeria, it
is used by many oil companies, government officials and even individuals
and media houses need them apart from charter in recent times, that is
why we have our partners in the U.S. to get us these things very quickly
because they are members of international helicopters’ association;
they can rally round to get you aircraf,t” he added.
On
how the sector can fair better generally, Ajayi advised that there is
need for the Central Bank of Nigeria (CBN) to reduce interest rate on
lending adding airlines who will not normally fair well when they are
made to pay huge interest on loans.
Article Accredited :Business day
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