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LequteMan
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Nigeria - In a letter to the president-elect, Federal republic of Nigeria, Gen. Muhammadu Buhari, Airline operators in the country have called for the introduction of a policy that will enable banks charge single digit interest rate on airlines for aircraft acquisition and running costs.
This, according to the operators has become necessary in order to save Nigerian airlines from going under, ThisDay reports.
According to Managing Director of Arik Air, Chris Ndulue, “the biggest challenge of doing business in Nigeria is the high cost of securing credit facility and for a capital intensive industry like aviation, you have to invest a lot of money as equity as an investor and you also have to borrow a lot of money in order to be able to do the business. High cost of fund is a big issue and coupled with the fact that a lot of aircraft components and services are imported. And over the years the trend we have seen is that the naira is constantly dwindling which eventually is a downward trend and that is why it is difficult for other airlines in the past to survive, it was not that they were not determined to survive,” Ndulue said.
He remarked that there must be a different arrangement for airlines because they operate with very low margin profits and loans ought to be long term to enable them (airlines) pay bank without rocking their finances.
#Nigeria #ArikAir #Buhari
This, according to the operators has become necessary in order to save Nigerian airlines from going under, ThisDay reports.
According to Managing Director of Arik Air, Chris Ndulue, “the biggest challenge of doing business in Nigeria is the high cost of securing credit facility and for a capital intensive industry like aviation, you have to invest a lot of money as equity as an investor and you also have to borrow a lot of money in order to be able to do the business. High cost of fund is a big issue and coupled with the fact that a lot of aircraft components and services are imported. And over the years the trend we have seen is that the naira is constantly dwindling which eventually is a downward trend and that is why it is difficult for other airlines in the past to survive, it was not that they were not determined to survive,” Ndulue said.
He remarked that there must be a different arrangement for airlines because they operate with very low margin profits and loans ought to be long term to enable them (airlines) pay bank without rocking their finances.
#Nigeria #ArikAir #Buhari
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