Friday, 27 December 2013

Foreign private jet operators scramble for Nigerian market

A private jet

Private jet and chartered aircraft companies from Europe and North America, especially the United States and Canada, are bracing for a boom in the Nigeria’s private jet market as the nation gets ready for general elections in 2015, findings have shown.
Top aviation officials disclosed that a significant number of the companies from Europe, the US and Canada were already submitting applications through local representatives to the Nigerian Civil Aviation Authority and the Ministry of Aviation to bring in aircraft into the country for charter operations.
It was also learnt that some foreign private jets had started coming into country in preparation for the boom, expected to begin as early as the first quarter of 2014. The source said, “I think 2014 is going to be a very booming year for private jet operators in the country. The local operators are warming up for this seriously. But the interesting and surprising thing about this is that a number of foreign companies, especially from Europe, the US and Canada, have submitted documents, seeking permission to bring in private jets into the country for charter operations.

“Well, government is still looking at those applications because you know the recent reform in the general aviation sector has changed the landscape of the charter business. We don’t know what the Ministry of Aviation will do about it.”
According to another top official of the Ministry of Aviation close to the matter, some of the applications by the foreign companies were actually submitted by their local representatives.
The official, however, pointed out that the recent aviation law, which barred foreign-registered jets from carrying out charter operation business in the country, had brought the application process into a ‘suspense’ and nobody could say what could be the next action on the matter.
The official said, “Some of the foreign companies applying for permission to bring airplanes into the country are actually doing so in partnership with some local representatives who are submitting these applications on their behalf.
“The challenge now is some of these foreign companies may not be ready to de-register their planes and make them Nigerian-registered. If government insists, they may look for a leeway because a number of them are desperate to come in to enjoy the boom.”
Politicians had spent N2.52bn on charter flights within 10 weeks preceding the April 2011 elections, according to investigation by the PUNCH.
The politicians, it was learnt, used the charter flights to move from one campaign venue to the other as the April elections closed in.
Investigation by our correspondent also revealed that each of the four major indigenous charter jet operators, who conveyed politicians to various parts of the country for electioneering, made about $420,000 (N63m) every week.
Industry sources said each of the operators worked for about 70 hours a week with the fee for each hour fixed at about $6,000 (N900,000).
As at 2011, the four major indigenous charter jet operators in the country then were Kings Airlines, Wings Aviation, Top Brazz Aviation and Overland Airways.
However, findings showed that other airlines, including Associated Airlines, also engaged in charter services occasionally, while some non-aviation companies, which own private jets, rented them out to their politician-friends for charter services.
Currently, the charter aircraft operators in the country include Hanger8, Kings Airlines, Top Brazz Aviation, Wings Aviation, Overland Airways, Arik Air, Vistajet and Aero Contractors.
Further findings showed that Nigerians, notably public office holders and businessmen, spent about N29.7bn on charter flights in 2012.
Statistics from the Nigerian Civil Aviation Authority, Federal Airports Authority of Nigeria and Nigerian Airspace Management Agency, showed that the nation’s airports handled an average of 50 charter flights per day in 2012.
Charter flight operators said politicians, state governors and other clients paid an average of $7,000 per hour for each flight.
Charter airline operators at the Murtala Muhammed Airport, Lagos, said each of the charter flights took an average of one and a half hours; hence, the operators generated about $10,500 in revenue from each flight.
This means that eminent Nigerians who patronised the services of the operators spent about $525,000 (N81.38m) on charter flights each day in 2012.
Consequently, the Very Important Persons must have spent about $191.625m (N29.7bn) on charter flights in 2012 at $525,000 multiplied by 365 days.
The statistics for 2013 could not be obtained from the aviation authorities.

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