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FAAN says it cannot provide $500m for aircraft acquisition

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The Federal Airports Authority of Nigeria (FAAN) Sunday  disclosed that it did not borrow $500 million (N74.4 billion) from China to acquire aircraft for domestic carriers.

FAAN’s General Manager, Corporate Communications, Yakubu Dati, in a statement FAAN said it cannot acquire aircraft for domestic operators because it is a service provider in charge of the airports.

“FAAN is a service provider in the industry and is presently occupied with translating the master plan of the aviation sector into concrete realities. At present, the authority is focused on the reconstruction of 22 airports across the country as initiated by the Minister of Aviation, Princess Stella Oduah. The Lagos terminal 1, popularly known as General Aviation Terminal (GAT) has since been commissioned while the remaining airports are at different stages of completion. Work on the remaining 11 airports in the second phase will soon begin.”

Dati said the orientation of aviation employees was being vigorously pursued through capacity development, and the Managing Director of the agency, Mr. George Uriesi was spearheading this paradigm shift towards service delivery, accountability, and self-sustenance.

He, however, added that the Ministry of Aviation was making arrangements to facilitate the acquisition of 30 airplanes to boost the operations of domestic airlines.

Dati acknowledged that the Federal Government has plans to acquire aircraft for domestic carriers, as he reiterated in Benin City recently, adding that the modalities for the acquisition were being fine-tuned to checkmate the abuse of the aviation intervention fund as was done many times in the past.

“This strategy will plug the loophole that allows fortune seekers free access to these funds. Other strategies are being deployed to grow the domestic airlines. Princess Oduah’s successful campaign for the removal of taxes and tariffs on commercial airline spare-parts is being widely commended as a step in the right direction.
“Some airports have been designated as agro-allied and cargo terminals to promote investment and make them self-sustaining. In the area of safety and security, modern security equipment has been procured following a comprehensive security threat and vulnerability assessment,” Dati noted.

The General Manager also said the “E” Arrival Wing of the international terminal of the Murtala Muhammed International Airport, Lagos (MMIA) has commenced operations, adding that the Ministry of Aviation was making arrangement towards the construction of brand new airports in 2013.

“The year 2013 will witness the construction of brand new airport terminals in Abuja, Lagos, Kano and Port Harcourt, and the commencement of the Aerotropolis project; a concept that involves building cities around airports, and thus connecting businesses, suppliers, executives and goods to the aviation global world. The transformation of the aviation sector is on course,” he said.