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Hard times hit private jet owners, convert planes to commercial use
Wealthy Nigerians who hitherto bestrode the length and breadth of the country in their expensive and state-of-the-art multimillion dollar private jets have now converted them to hire and reward.
Hire and rewards entails putting small aircraft to commercial operation and that is done with the permission of the aviation regulatory body.
However, the Nigerian Civil Aviation Authority (NCAA) has set out to monitor owners who engage in such practice without notifying the agency as there are strict rules of engagement for such operations while private jet owners are not subjected to strict regulations because the owners flies himself negligible number of people.
Within this period, no fewer than 41 private jets have been de-registered with the aircraft either sold off or returned to their owners abroad.
An airline chief, who preferred anonymity, in a chat with Woleshadare.net estimated that 150 business aircraft existed in Nigeria and were owned by the government, corporate organisations and individuals.
He added that the NCAA used to process monthly over 200 business and private flight clearances but the number has drastically reduced.
Speaking at a two day Nigerian Business Aviation Conference held at the weekend, Chief Executive Officer Evergreen Apple Nigeria (EAN), Segun Demuren attributed the latest situation to recession that has made the owners to give up their planes for charter operations to make money for themselves and for maintenance which cost so much.
He stated that the boom in the oil and gas led to a rapid growth of business aviation with many Nigerians acquiring jets to travel in leisure and in class, adding that the business took a plunge due to economic situation that made owners to convert to commercial venture.
As at February 2017, the number of privately owned jets in Nigeria has shrunk by almost 60 per cent between 2015 according to the records with NCAA.
Demuren however said he was optimistic that that special sector of the aviation would bounce back as Nigeria begins recovery out of recession which is expected to end next year.
He stated that the harsh economic situation has led to an increased number of foreign registered private jets/ corporate jets in Nigeria.
He also lamented the situation whereby any aircraft put on a 5N (Nigerian) registry loses asset value by as much as 25 per cent, yet incurs higher insurance premiums, up to 35 per cent higher in some cases.
The Evergreen Apple Nigeria boss said: “Maintenance and service support still remains a challenge and whilst the fleet continues to grow, there are no accurate figures for the amount of jets operating in Nigeria. Educated guesses say between 100 and 150, with an anticipated 350 set to be in operation by
Besides, he said: “Overall, however, Nigeria remains one of the largest business aviation markets in Africa with continued growth expected over the next 15-20 years. Demand for Business Aviation is principally fuelled by activities in the oil and gas sector.”
He noted that there are expectations that growth in business aviation in Nigeria would marginally slacken due to downturn in the economy.
Spokesman for NCAA, Sam Adurogboye confirmed that many of the owners now put the aircraft under the custody of an existing firm which has an Air Operator Certificate (AOC) to enable them successfully carry out the charter or commercial service operations.
The reason for an increased number of foreign registered private/corporate jets in Nigeria has been traced to lower insurance policy cover, convenience to secure services of crew members as well as a ploy to conceal real ownership.
Nigeria in the last decade has seen an upsurge in the presence of luxury aircraft at its airports and at airports’ hangars across the country with private flying the preferred mode of air travel among influential Nigerians.
In a paper he delivered at the forum, chairman, ANAP Business Jet Limited, Atedo Peterside said business aviation has a terrible reputation in West Africa, lamenting that unfortunately, private jets are still seen in the region as expensive toys for playboy millionaires, insensitive and wasteful Heads of States /senior government officials or politicians and others who acquired their wealth through questionable means.
Peterside maintained that private jets can be and are indeed an indispensable and efficient tool for big business in West African region where efficient travel between neighbouring capital cities can still be a nightmare because of the serious challenges faced by commercial airlines.
His words, “Traffic between many of the smaller urban centres is not large enough to support regular scheduled services. For instance, three flights a week between Lagos and Freetown means that to attend a three hours Tuesday morning meeting in Freetown, a Nigerian business delegation may have to depart Lagos on Saturday morning and only get back home on Thursday afternoon. Even travel capitals of two neighbouring countries like Abuja and Yaounde remains a daunting task in 2017.”
