- ALC to lease eight aircraft in its first year
CEM REPORT, AVIATION | The Federal Executive Council (FEC) approved Messrs AJW Consortium as the concessionaire for the establishment of an Aviation Leasing Company (ALC).
The establishment of the leasing company is bid by the federal government to inject private sector funds into infrastructure development and boost the nation’s economic growth.
The approval is under a Public Private Partnership (PPP), following the issuance of Full Business Case (FBC) compliance certificates by Infrastructure Concession Regulatory Commission (ICRC),the agency statutorily established to regulate PPPs.
In a statement by the Acting Head of Media and Publicity of the ICRC, Ifeanyi Nwoko, the concessionaire company would alleviate the problems of aircraft/engine leasing, costly lease rates, and high insurance premium charges to Nigerian airlines.
He added that ALC would also provide local leases of aircraft to both domestic and international carriers.
“It will facilitate the ease of doing business for foreign lessors with Nigerian domestic airlines being a one-stop-shop thereby limiting capital flight and the strong demand on forex,” the Commission said.
It added that the project will create employment opportunities for Nigerians, which will have a multiplier effect on the economy.
Furthermore, the ALC will provide leasing opportunities for Nigerian and African airlines to boost their fleet size, alleviate the problem of aircraft leasing and high insurance premium charges, provide an alternative to foreign lessors and introduce competition, which would relax the terms and conditions currently obtainable, thereby facilitating growth and development.
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The statement notes that the ALC will commence with leasing eight aircraft in its first year of operation, increasing the portfolio as it grows to 50 leased aircraft after the 7th year and remaining constant at 70 by 2034.
The ALC would then starts to purchase aircraft outright (instead of leasing) after approximately seven years, once the portfolio exceeds 50 leased aircraft.
