Experts Identify Factors Militating against Affordable Financing for Nigerian Airlines

Experts at a conference in Lagos highlighted key factors hindering affordable financing for Nigerian airlines. Captain Samuel Caulcrick, former Rector of the Nigerian College of Aviation Technology, pointed out low aircraft utilization as a major issue, with many planes flying fewer hours per day due to the lack of airfield lighting for night landings at 32 airports in Nigeria.

This limits revenue generation, making it challenging for airlines to repay loans. Caulcrick emphasized that increasing daily aircraft utilization could significantly boost revenue.

Akin Olateru, Managing Director of Omni Blue Aviation, stressed the importance of cash flow, good management, and financial planning for airline survival. He also highlighted the impact of currency exchange fluctuations on operating costs.

Olateru called for government policies to support industry growth, including reviewing the ban on older aircraft to focus on maintenance culture instead.