The obvious refusal of the various financial institutions including banks and private investors to stake their investments in assisting domestic airlines and the various aviation service providers have been traced to what is termed the huge risk in the country’s aviation sector.
Stating this fact was the President and Chief Executive of Tropical Arctic Logistics Limited (TAL), Emperor Chris Baywood Ibe at the unveiling of his helicopter airline service to the general public at the Murtala Muhammed International Airport.
Launching his helicopter airline service alongside the one of the six of AW139 helicopter and a Challenger fixed business executive jet valued at $150 million for the company,Ibe insisted that banks were reluctant to extend huge credit exposure to the aviation industry because they were yet to understand the sector very well.
The business mogul while declaring his determination not to allow this challenge to truncate his dream said he found an alternative way in turning to self funding with his team from the proceeds from their other businesses to float the airline company.
According to Ibe, the company which presently provides services to the Oil and Gas industry, Executive Spot Charter, Banking Industry, Medical Emergency Evacuation (MEDVAC) and allied services as well as executive private aircraft charter, will subsequently venture into scheduled flight operations.
He however, used the opportunity criticize some domestic airline operators on the choice of the aircraft they use on various routes which he said were wrong citing the use of regional aircraft such as B737 on one-hour domestic operations as sheer waste of resources.
His own firm he said would, however, do things differently by operating more cost-efficient aircraft such as the Embraer and other fuel-efficient fixed wing aircraft
His words: “Nigerian banks see huge risks in aviation; the reason we did not approach any bank for money. Our investment in this airline is from proceeds from our other businesses. Tropical Arctic Logistics, a Baywood company, was established in 2013 to provide professional solutions with particular emphasis on safety and efficiency.
“Our helicopter company offers business-beneficial services to the Oil and Gas industry, Executive Spot Charter, Banking Industry, Medical Emergency Evacuation (MEDVAC) and allied services as well as executive private aircraft charter.
“We are considering starting scheduled service operations. But we are going to use the right aircraft types and not B737 that airlines are using. It makes no sense operating B737 for 50 minute flight”.
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