Nigerian government pays off national carrier debts to UK company

Airline Industry Information, Nov 17, 1999

AIRLINE INDUSTRY INFORMATION-(C) 1997-9 M2 COMMUNICATIONS LTD

The Nigerian government has recently paid out USD16m for debts owed by the national carrier Nigeria Airways Limited to British company, Equator Leasing. The existence of the debt had apparently been preventing the carrier from operating on international routes due to fears about the airline's aircraft being seized so the government is hoping that Nigeria Airways will now be able to recommence serving lucrative routes such as that between Lagos and London. The News reported that Nigeria Airways will operate seven routes, six of which will be provided in conjunction with British Airways under a new joint venture between the two companies. Despite the liquidation of the debt observers have said that inadequate, and in some cases obsolete, equipment could hamper the airline's recovery. However, Nigeria Airways has entered into several arrangements with other airlines in an attempt to compensate for this shortfall in equipment.