• Aims to lower risk for lessors, ease aircraft access for local airlines
Kasim Sumaina in Abuja
The federal government yesterday disclosed plan to set up a new aircraft leasing firm with a sovereign guarantee while taking only a small equity stake.
The plan, the Minister of Aviation and Aerospace Development, Festus Keyamo, hinted was not to bail out airlines directly, but would provide guarantees covering two areas: The legal title and safety status of the aircraft, and repossession rights if a lessee defaults.
The government would hold a five to 10 percent equity stake in the leasing vehicle, positioning it to earn from its enabling role rather than operate the airline.
