Launching an Aviation Leasing Hub in Africa
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Project Objectives: Set up an ALC
At present there is no Aviation Leasing Company in Africa
The average age of the African aircraft fleet has been
traditionally high compared to the rest of the world, however
this situation has been improving dramatically with 45% of the
fleet now less than 10 years old.
Aircraft acquisition is an expensive proposition for most African
airlines, resulting in high financing cost. It has been estimated
that about 70% of commercial aircraft in Nigeria are financed
with the attendant high financing costs having a negative impact
on profitability.
Aircraft leases are not easily available as most of the major
international lessors are reluctant to lease aircraft to
small/medium airlines in Africa due to perceived risks. Thus
airlines in Nigeria generally cannot afford modern aircraft, with
the average age of aircraft in operation being 20 years old.View entire presentation