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Thursday, March 1, 2007

The Prospective Nigerian Return from Aviation's Coventry

The Nigerian Civil Aviation Authority (NCAA) has signed up for the U.S. Federal Aviation Administration (FAA) 's International Aviation Safety Assessment (IASA) category 1 status according to the the Director-General of NCAA, Dr Harold Demuren. Nigerian carriers are hopeful that a favorable finding by the IASA team will permit direct flights between the US and Nigeria. Virgin Nigeria, Arik Air and Bellview airlines are designated to fly on the US route, but have not been able to commence direct flights. Virgin Nigeria is partnering with North American Airlines and plans to wet-lease their planes to soon commence flights on the route. Bellview is also thinking of wet-leasing an aircraft or going through another country with an FAA category 1 certification. If the FAA/IASA category 1 status is granted to Nigeria, then the airlines designated would be able to go direct from Nigeria and avoid the expensive leasing option.

The Commerce officer in the US Embassy, Mrs Hannah Kamenetsky, conceded that an upgraded airline industry would be the key to enhanced trade between the US and Nigeria. Lurking in the background of all such considerations is the increasing influence of expansionary China and fluid Chinese funds in many under-developed African Nations. Development of Nigerian civil aviation is to a large extent dependent upon the Capetown Convention and Aircraft Protocol. This was a 2001 Ex-Im Bank instrument for aircraft export financing and now a critical tool for future development of the airline industry in Nigeria. To date, the treaty has been signed by 28 countries and ratified or acceded to by 10 countries, including the United States. The Cape Town Treaty and the related aircraft protocol entered into force on March 1, 2006, in the 10 countries that have ratified or acceded to the treaty. More information on the treaty is available on the Unidroit website.

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