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The first time Russian airplanes made significant impact in Africa was at the height of communism, when the then Ethiopian government wanted to replace US manufactured airplanes from Boeing with Russian made ones.
While the Ethiopian Airlines management could not say no; it did not want to oppose a maximum government enamoured with the ideals of communism, but it knew that it would be a difficult choice.
Russian planes were unable to gain traction even in Ethiopia because Ethiopian Airlines management explained to its government that replacing Western-made airplanes with that of Russian would entail comprehensive replacement of spares, training of the full personnel and equipment and facilities. This made the Ethiopian government to have a rethink and the decision was reversed.
Since the 1970s, Russian airplanes have not been well accepted among African airlines which seem to prefer Airbus and Boeing aircraft. This is coupled with the misgiving about Russian aircraft, which they said are prone to accidents.
But time has changed things. Russia seems to have developed new technology and reinvented its airplanes in terms of safety, fuel economy and comfort and they have robust acquisition choices, which may have attracted Afreximbank to partner with them to actualize its goal of connecting every part of the continent by air.
Nigeria is not left behind in this development as African Export Import Bank, (Afreximbank) last week partnered with the Russian Export Centre to provide brand new aircraft for operations.
This partnership is coming at a time when Nigeria airlines operators have struggled to pay 26percent interest loan to banks to acquire new aircraft and faced strenuous conditions from United States and European countries on aircraft leasing.
Speaking during the partnership in Lagos last week, Rene Awambeng, Global Head, Client Relations, Afreximbank, said the bank has entered into a strategic partnership with the Russian Export Centre, which is the export bank of the Russian federation to promote aviation in Africa, so that it can meet one of its strategic goals.
“The Russians have invested significant amount in research and development in their aircraft which are very efficient in terms of fuel consumption and are ecologically very friendly.
“We have partnered with Russian Export Centre, to provide solutions so that African entrepreneurs either private sectors, national airlines, private sectors, operators of airlines can acquire these aircraft through asset structures to meet our objective of moving people from one part of the country to another,” Awambeng said.
He explained that part of the partnership is to work with Nigerian authorities to certify the Russian aircraft to be able to operate in Nigeria, adding that the bank will enter commercial negotiations with operators of other aircraft or helicopters to see how they can acquire the aircraft and the bank can finance the acquisitions of these aircraft.
On the configurations of the aircraft, Awambeng said “The aircrafts are a blend of Italian, French and Russian technology and are very spacious. They are for regional routes and can take up to 100 passengers in different configurations of business class and economy. The aircraft are quick in take-off and landing, which means they can service short distances.
“The jet is very good for low cost. It can do several routes in one day, it is efficient in fuel consumption and we can provide a financing package to support the low cost airlines.”
He said as a financial institution, Afreximbank has advisory team that has got long term experience in advising national governments in structuring or helping them build feasibility and business plans for their national airlines.
On helping Nigeria realise its objective of creating a national carrier, Awambeng said the bank can advise the federal government of Nigeria on the aircraft types, routes and put together a feasibility plan and business plan for the national airline company.
“We can also support the national airline or private investors in the acquisition. We have done so previously in this country in supporting private sector companies in acquiring aircraft,” he added.
Nogie Meggison, chairman, Airline Operators of Nigeria said airline operators in Nigeria have always asked for access to brand new aircraft, adding that with Afrexim Bank coming into the picture to finance it, this will open a new chapter for operators into acquisition of brand new aircraft.
“Our problems in Nigeria as carriers are our financial structure and access to markets. You cannot finance an aircraft using 26percent interest from the Nigerian banks. With Afrexim Bank coming in now to lease the aircraft, we will be required to pay just 10 to 15percent deposit of the actual value of the aircraft to operate the aircraft.
“With this, the cash flow immediately gets better and we will have disposable income to take shock. So you can afford to pay a six months lease or put a deposit of 10percent and still have cash in your pocket,” Meggison explained.
He suggested that there should be provision of spare parts, skilled engineers to provide checks and repair the aircraft and maintenance facility for the partnership to be sustained.
IFEOMA OKEKE
