Rani
22nd Jul 2003, 00:24
Source: Nigerian Guardian News
EXIM Bank to finance new Nigerian airline
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By Wole Shadare and Adepetun Adeyemi
THE American Export and Import Bank (EXIM) is to finance a new domestic airline, Overland Airways, with the sum of $6 million in its bid to open up abandoned airports in the country.
The chief executive officer of Landover Aviation and Overland, Captain Edward Boyo, while briefing journalists at the weekend in Lagos, said it was the first time in 20 years that aviation is getting such a boost, adding that the political dispensation has assisted in attracting such credit facilities.
Boyo explained that with the credit facility, the new domestic carrier which will kick-off in August this year, is expected to operate in Ibadan, Benin, Akure, Warri, Lagos and Abuja.
Speaking on the link between EXIM Bank and the aviation industry, Boyo said; "We have a direct loan facility, meaning that we are grounded with capital, based on our presentation to manage. So EXIM Bank will not be our management team, rather it is just financing. There is a trust given to us to be feeding them with information through our local bank (Guarantor) Capital Bank limited."
The new effort, he reiterated, would generate substantial employment after a thorough study, adding that he would not for now be able to give figures of employment generations.
He however said: "As the business is growing, employment will also thrive higher."
He stressed that it will also lead to increased air travel, which according to him is a necessity.
Dwelling more on what it takes to obtain support from EXIM Bank, the airline boss said, the move requires a lot of patience, as it takes time.
Secondly, he said, one must be ready to demonstrate the know-how, which requires a lot of paper work towards meeting their own bureaucratic process or multilateral financiers requirement.
His words: "You must put all this points together and get things done and convince them for approval. Government guarantee is not required. They are not involved. Your asset determines. There is what we call asset financing. Your asset serves as collateral, also your local bank will be contacted."
Asked why other airlines fail in the same business, Boyo said from their finding on how airlines succeed, he said such airlines require a stable financial and operational platform to operate, arguing that with a lot of expertise in aviation and airline related issues, his firm is relying on that knowledge base to succeed.
"We have an acronym called CARE (Customers Are Really Everything). The way we are structured is that airline operations is out, not the mean focal point but the customer is. We believe if we shall address the needs of customers we shall have customer patronage," he added.
He stressed that because the outfit is new, its dispatch liabilities will be high as the airplanes are specifically designed for that operation.
According to him: "We are building the foundation for a network in Overland, a network that will serve Nigeria. We are truly Nigerian, with the same capital, we could have put two, three or more planes flying through Lagos - Abuja, Lagos -Port Harcourt and forget about the other parts of the country. We are the airline that will go to the heart of Nigeria."
He added that the airline took the decision to develop the inter-land routes because the transportation infrastructure in Nigeria was wasting.
Overland Airways is a sister company of Landover Aviation, a leading aviation services provider in Nigeria.
ALSO From Wichita Business Journal about Equipment:
Overland Airways places Beechcraft 1900D order
Jerry Siebenmark
Overland Airways of Lagos, Nigeria, has placed an order with Raytheon Airline Aviation Services for two used Beechcraft 1900D airliners.
Delivery of the aircraft will be in July and August.
Terms of the sale were not disclosed.
EXIM Bank to finance new Nigerian airline
-----------------------------------------------------
By Wole Shadare and Adepetun Adeyemi
THE American Export and Import Bank (EXIM) is to finance a new domestic airline, Overland Airways, with the sum of $6 million in its bid to open up abandoned airports in the country.
The chief executive officer of Landover Aviation and Overland, Captain Edward Boyo, while briefing journalists at the weekend in Lagos, said it was the first time in 20 years that aviation is getting such a boost, adding that the political dispensation has assisted in attracting such credit facilities.
Boyo explained that with the credit facility, the new domestic carrier which will kick-off in August this year, is expected to operate in Ibadan, Benin, Akure, Warri, Lagos and Abuja.
Speaking on the link between EXIM Bank and the aviation industry, Boyo said; "We have a direct loan facility, meaning that we are grounded with capital, based on our presentation to manage. So EXIM Bank will not be our management team, rather it is just financing. There is a trust given to us to be feeding them with information through our local bank (Guarantor) Capital Bank limited."
The new effort, he reiterated, would generate substantial employment after a thorough study, adding that he would not for now be able to give figures of employment generations.
He however said: "As the business is growing, employment will also thrive higher."
He stressed that it will also lead to increased air travel, which according to him is a necessity.
Dwelling more on what it takes to obtain support from EXIM Bank, the airline boss said, the move requires a lot of patience, as it takes time.
Secondly, he said, one must be ready to demonstrate the know-how, which requires a lot of paper work towards meeting their own bureaucratic process or multilateral financiers requirement.
His words: "You must put all this points together and get things done and convince them for approval. Government guarantee is not required. They are not involved. Your asset determines. There is what we call asset financing. Your asset serves as collateral, also your local bank will be contacted."
Asked why other airlines fail in the same business, Boyo said from their finding on how airlines succeed, he said such airlines require a stable financial and operational platform to operate, arguing that with a lot of expertise in aviation and airline related issues, his firm is relying on that knowledge base to succeed.
"We have an acronym called CARE (Customers Are Really Everything). The way we are structured is that airline operations is out, not the mean focal point but the customer is. We believe if we shall address the needs of customers we shall have customer patronage," he added.
He stressed that because the outfit is new, its dispatch liabilities will be high as the airplanes are specifically designed for that operation.
According to him: "We are building the foundation for a network in Overland, a network that will serve Nigeria. We are truly Nigerian, with the same capital, we could have put two, three or more planes flying through Lagos - Abuja, Lagos -Port Harcourt and forget about the other parts of the country. We are the airline that will go to the heart of Nigeria."
He added that the airline took the decision to develop the inter-land routes because the transportation infrastructure in Nigeria was wasting.
Overland Airways is a sister company of Landover Aviation, a leading aviation services provider in Nigeria.
ALSO From Wichita Business Journal about Equipment:
Overland Airways places Beechcraft 1900D order
Jerry Siebenmark
Overland Airways of Lagos, Nigeria, has placed an order with Raytheon Airline Aviation Services for two used Beechcraft 1900D airliners.
Delivery of the aircraft will be in July and August.
Terms of the sale were not disclosed.