Federal Government in talks with Embraer
The Federal Government has entered negotiations with Embraer for the acquisition of new aircraft for the domestic carriers. According to the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mr. George Uriesi:
Domestic carriers use wrong equipment for most of their operations. There is no established record of sustainability for these airlines mainly because of the use of wrong equipment. Intervention fund by the Federal Government in the past to assist them re-fleet has failed because there was no evidence of the money being ploughed back into the airlines leading to them failing in the long run. Government wants to change this model entirely by floating a fund for the acquisition of new aircraft for the domestic carriers. In this regard, government is seeking a partnership with Embraer that will lead to a discussion on how these new aircraft will be procured at very competitive, fair, and concessionary rates.
The aircraft will be financed with a N80 billion loan from China:
The Federal Government may have borrowed $500 million (N80 billion) to buy the 30 brand new aircraft it planned to give to 10 domestic airlines as fresh intervention in the aviation industry. [T]he government borrowed the N80 billion from a Chinese bank. Stella Oduah, Aviation Minister, had said that she was not happy with the way the first N300 billion intervention fund was disbursed and spent, adding that the only way to save the industry from imminent collapse was to quickly intervene again.
On another note: the two ex-Air Nigeria EMB190s, owned by UBA, are still stored at Lagos Airport. Perhaps the Ministry of Aviation could acquire those first?