The Chief Operating Officer (COO) of Bi-Courtney Aviation Services Limited (BASL), operators of Murtala Muhammed Airport Terminal 2 (MMA2), Mr. Remi Jibodu, has commended the Federal Government for implementing the Cape Town Convention (CTC) practice, stating that it will significantly boost capacity in Nigeria’s aviation industry.
Jibodu made this known on Tuesday when the executive members of the League of Airport and Aviation Correspondents (LAAC) paid a courtesy visit to BASL’s office at MMA2 in Lagos. He noted that the CTC practice, instituted last year, will help airlines secure dry leases, streamline aviation equipment financing, reduce costs, and increase flexibility in utilizing local crew instead of foreign personnel.
The BASL COO explained that access to dry lease arrangements would enable airlines to retain and develop Nigerian pilots, create more employment opportunities, and increase revenue generation within the sector.
“When you look at most of the aircraft brought in around November and December last year, many were acquired at lower rates due to the season. However, some airlines had to return aircraft because they couldn’t cope with the lease agreements,” Jibodu stated.
He further highlighted the financial challenges facing the industry, pointing out that high-interest rates—exceeding 30%—and inflation, currently at approximately 24.7%, make it difficult for airlines to break even when borrowing from financial institutions.
Addressing concerns about aviation capacity, Jibodu emphasized the need for balanced route development. While routes such as Lagos, Abuja, and Port Harcourt are well-utilized, others remain underserved. He urged the government to establish trade centers at various airport locations to enhance economic activities and drive passenger traffic.
“If you bring in capacity today, airlines want to know if they can fill their aircraft. The key is to create trade centers at airports, ensuring connectivity between economic hubs,” he said.
He further recommended that the government focus on ensuring the economic viability of new airports, rather than merely expanding infrastructure without sustainable business models.
