Bauchi in unprofitable aircraft leasing business, leases plane again

Bauchi in unprofitable aircraft leasing business, leases plane again

Friday, September 18, 2015 10:13 pm

Bauchi's Embraer EMB145LR (5N-BJM: now going to Overland Airways

Bauchi’s Embraer EMB145LR (5N-BJM: now going to Overland Airways

Overland Airlines will be the new lessee of an Embraer ERJ 145 plane owned by the Bauchi State Government.

The deputy governor of the state, Alhaji Nuhu Gidado said the government will soon be signing an agreement with the airline, after a technical problem with the plane had been fixed.

But aircraft leasing has been bad business for the state, Gidado said, revealing the various times the aircraft leased to various airlines had failed to generate revenue for the state.

Gidado said that the plane bought nine years ago, was first leased to IRS Airlines, then Hamsel Air, then Associated Aviation. Overland is the new airline government wants to do business with. The earlier three leases did not yield any money to the government.

“The aircraft was first leased to IRS and it generated N100 million, but the government spent N123 million on its repairs. It was then leased to Hamsel Air at the rate of N15 million per month.

“Associated Air leased it for N51 million after the then state government cancelled the agreement with Hamsel but that also did not yield the expected revenue as the government had to part with N238 million for repairs,” he said.

Gidado debunked media report that the plane had been stolen, saying that the state government never issued a statement to that effect.

‘’The handover note from previous administration confirmed that the government owned an aircraft,’’ he said.
He urged journalists to always crosscheck facts and avoid giving out false information to the public.

The aircraft was bought in 2006 during the administration of Alhaji Adamu Muazu as governor.

The plane returned to Bauchi on Sept. 11 from Morocco where it was said to be taken for repairs

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