FG signs CTC agreement to reduce airline operating cost

The Federal Government, on Thursday, signed the Cape Town Convention (CTC) Practice Directions in a move to reduce the cost of airline operations in the Nigerian aviation sector.

The agreement was made by the Chief Judge of the Federal High Court, Justice John Terhemba Tsoho, during a stakeholders’ meeting of the Presidential Enabling Business Environment Council (PEBEC) chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja.

With the signing of the CTC Practice Directions, the Cape Town Convention becomes fully operational in Nigeria, thereby reducing insurance costs for airlines, restoring investor confidence in the nation’s aviation sector, and enabling domestic airline operators to dry lease aircraft, among other benefits.

A statement issued by the Vice President’s spokesman, Stanley Nkwocha, noted that some local operators had previously breached the Cape Town Convention, which regulates aircraft leasing globally. This led to the Aviation Working Group, co-chaired by Airbus and Boeing, warning that Nigeria would be blacklisted until it implements a law to prevent such breaches.

Speaking after the signing, Shettima said the administration of President Bola Ahmed Tinubu is a pro-business government that is ready “to take all the necessary measures – as painful as some might be – to protect, promote, project, and preserve the interests of the Nigerian nation,” as well as support and advance the nation’s airline industry.

He said, “It is a great day for the Nigerian nation. We had fruitful engagements and were able to exchange ideas across all sectors, leading to robust solutions for the challenges facing the aviation industry.

“I want to take this opportunity to commend Justice John Tsoho, the Chief Judge of the Federal High Court. Judges are, by nature, very conservative. For him to address the issue directly and sign the Cape Town Convention (CTC) Practice Directions is truly commendable.”

The Vice President also praised the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, saying, “All the issues concerning airline operators have been addressed by the Minister, and on Monday, they will meet him to further consolidate our gains.”

Shettima assured airline operators in the country that President Tinubu will do everything possible to promote and preserve the Nigerian airline industry.

He added, “And, of course, my brother, Allen Ikechukwu Onyema, the Chairman and Chief Executive Officer of Air Peace, and Alhaji Dr. Abdulmunaf Yunusa Sarina, the Chairman of Azman Airlines, I want to assure you that the current administration, headed by His Excellency President Bola Ahmed Tinubu, is a pro-business and pro-Nigeria government that will take all necessary measures to protect, promote, project, and preserve the interests of the Nigerian nation.

“Air Peace has a fleet of 35 aircraft with 26 more on order. Rest assured that President Bola Ahmed Tinubu is keenly interested in the promotion and preservation of the Nigerian airline industry. I spoke with him about three days ago, and he was very interested in the outcome of our deliberations today. I will report back to him.”

The Finance Minister, Mr. Edun, promised to meet with airline operators and other stakeholders to finalize issues related to the agreements reached at the meeting with the Vice President