Airline Boss Canvasses Reduction Of Interest Rates

By Chuks Okoh
Chairman and Chief Executive Officer of Air Peace, Barrister Allen Onyema has urged Nigerian commercial banks to lower interest rates to single digits to enable indigenous airlines access more funds for both aircraft acquisition and other expenditure to run their businesses.
Onyema said the reduction in interest rate by Nigerian commercial banks has become imperative because airlines require more time to repay their loans , because of low return on investment .
He urged the Central Bank of Nigeria to work an arrangement that would put commercial banks in a strong position to finance high capital intensive airline projects .
Speaking in an interview in Lagos on plans by the start up carrier to begin scheduled operations, Onyema said Air Peace is patterned after the model of South West Airlines in the United States , which hopes to revolutionise the way air transport is carried in Nigeria.
He said Air Peace has taken delivery of five aircraft, as part of efforts to acquire the all important Air Operators Certificate( AOC) from Nigerian Civil Aviation Authority ( NCAA).
Onyema said in the coming months , Air Peace would take delivery of additional two aircraft to bring its fleet to seven to enable it serve both primary and secondary airports nationwide.
He urged the Federal Government to install air field lighting facilities at all airports to ensure 24 hours operations, which he said has become imperative on safety and security grounds.
The Air Peace boss also called on the Federal Government to direct aviation agencies to allocate land to domestic operators that are set to establish aircraft maintenance repair centres at some airports in the country, which he said would generate foreign exchange and create thousands of jobs to aviation professionals .
He said Air Peace has invested in the training of over 40 pilots, who have been sent to the CAE Academy in the United Kingdom for further training to enhance their flight proficiency .
He spoke of plans by Air Peace to change the face of air transportation in Nigeria by giving value to customers by investing in state of the art aircraft, which are fitted with Wifi technology .
He said the Nigerian aviation industry needs more investment , even as he canvassed cooperation among domestic carriers to make them stronger and more competitive .
Onyema said Air Peace is ready to sign interline and codeshare agreements with competent carriers, which are set to up the ante in air travel business to give passengers the best experience.
He said many domestic carriers have failed because the owners lack sound business practices and integrity, affirming that commercial banks would only be comfortable giving money to business people who they do could trust.
He said previous attempts by government to package intervention for domestic carriers have been abused, as the funds provided were misapplied .
On the problem of aviation fuel, Onyema said many independent fuel markets were reluctant to sell fuel to domestic operators because of indebtedness. He said many domestic operators find it difficult to settle their bills for picking aviation fuel, a development he said is affecting the availability of the product resulting in flight delays and cancellation .
He canvassed the cash based transaction model for purchase of aviation fuel, such that the marketers would not run into cash flow problems. He denied insinuations making the round on the ownership of Air Peace, affirming that the airline is 100 owned by him, with credit facility accessed from Nigerian commercial banks, which provided the funds for the acquisition of aircraft and running capital for the airline.
He said rather than pulling down one another Nigerian carriers should forge a common front to be stronger so that they could grow the domestic market to attract more people to travel by air.
He said there are not enough airlines in Nigeria to cater for the over 170 million people, out if which a paltry five per cent travel by air .
On what the new minister of aviation , Chief Osita Chidoka should do to turn around the sector, he urged him to consult widely with airline operators and other stakeholders to unravel the fundamental areas requiring attention in the sector.
He said if Chidoka does not consult widely, he may not be able to address the myriad of challenges affecting the sector .
Onyema said Air Peace would continue to invest in indigenous professionals including pilots and aircraft engineers, who if well motivated could outshine their counterparts from any part of the world.