Nigeria Takes Step Towards Reducing High Cost of Flight Tickets
In a bid to make air travel more affordable, the Federal Government, through the Ministry of Aviation and the Nigerian Insurance Commission (NAICOM), has introduced a Revised Insurance Regulation on Leased Aircraft.
This new regulation aims to boost airline operations in the country and encourage investors to make aircraft more accessible to airline operators, ultimately leading to a reduction in airfares.
Currently, most Nigerian airlines purchase airplanes outright, limiting their operational capacity compared to their international counterparts, who often lease aircraft to increase their fleet size. This limitation contributes to the high cost of flight tickets in Nigeria.
However, with the new regulation, airplane lessors and investors are more likely to engage with Nigerian airlines, as they are now guaranteed international insurance coverage through the relaxation of foreign insurance rules.
The Revised Insurance Regulation on Leased Aircraft is a significant step forward in Nigeria’s efforts to reduce airfares.
By providing a more favorable business environment, the government hopes to attract more investors and encourage the growth of the aviation industry.
The recent update to the Irrevocable Deregistration and Export Request Authorization (IDERA) procedure by the Nigerian Civil Aviation Authority also makes it easier for owners, lessors, and financiers to reclaim aircraft when operators fail to meet contract terms, further enhancing the attractiveness of the Nigerian market to investors.
This development brings Nigeria one step closer to achieving affordable flights, a goal that has been elusive for many years. With the new regulation in place, airline operators are expected to have greater access to aircraft, leading to increased competition, improved services, and ultimately, lower airfares for passengers.
As the government continues to work towards creating a more conducive business environment, Nigerians can look forward to a more affordable and efficient air travel experience.
