Camair-Co: Finally the Tenant Becomes the Owner

The official ceremony for the delivery of documents definitively acquiring these previously leased aircraft has taken place in Yaoundé.

Camair-Co B737-700NG

The Cameroon Airlines Corporation (Camair-Co), the national airline, becomes the owner of two Boeing 737-700 NG aircraft previously leased from Aviation Capital Group (ACG) as of Wednesday, April 19, 2017. The official ceremony of handing over the documents definitively acquiring these aircraft takes place took place at 10 am at the Hilton Hotel in Yaoundé. It is under the patronage of the Prime Minister, Head of Government, Philemon Yang, and the effective chairmanship of Transport Minister Edgard Alain Mebe Ngo'o. The information is contained in a statement published in the columns of CT by Ernest Dikoum, general manager of Camair-Co.

One can imagine the joy that animates the leaders of the company, which today is in the posture of a former tenant, became owner. Undeniably, it is a great moment of relief for Camair-Co who had to spend about 19 billion CFA francs on the rental of these planes for five years (2011-2016). It was not clear, given the difficult situation in which the company was located, to regularly pay the rental expenses of these two aircraft on a regular basis. The penalties are provided in case of failure. This acquisition therefore relieves the cash position of Camair-Co, which will be able to better control its expenses. The company now has five planes owned. The two Boeing 737-700 NG (Next Generation) registrations TJ-QCA and TJ-QCB; Two MA 60s serving the national grid, and a Boeing 767-300 ER. It is already a good working base if all are operational at the same time, especially when the implementation of the seven-year Camair-Co recovery or recovery plan begins.

A forecast operating account spread over seven years also supports the recovery plan, which will mobilize not less than 60 billion CFA francs. This recovery plan is supported and supervised by the Government of Cameroon, with the guarantee of sovereignty. But, it is through the accompaniment of a banking pool. "There is a group of banks that have syndicated a loan of 30 billion for the revival of Camair-Co and this is the first step," according to Ernest Dikoum, who declared in March "the first disbursements already carried out ". This situation has made it easier to acquire the two planes that were previously hired.

Good to know, the aircraft acquired are part of the third generation of the Boeing 737. This generation, which is available in four versions (737-600, 700, 800 and 900), was built in 1996. It is equipped with two reactors and of a fully modernized cockpit (Electronic Flight Instrument System). The Boeing 737 is the best-selling airliner in the world. It is built by the American company Boeing since 1965. It is a short to medium-haul equipment and Boeing is also the consultant selected to accompany Camair-Co in its recovery process.

Q. What was the financial impact of the two Boeing leases on the company's expenses?

Since the entry into service of the two Boeing in 2011 until the closure of their economic calendar on 3 November 2016, the date of the end of the lease, these machines cost Camair-Co and the State of Cameroon US $ 30 million, or about XAF 19 billion at the current value of the US dollar. And that's without counting the penalty fees for the various seizures that we have often known. There were exactly three seizures that also cost a lot in terms of penalties. But now, thanks to the efforts and the will of the government of the Republic, the episode of the rental of the Boeing is turned and we must focus on the future.

Q. Now that the gear is back, what is going to change for Camair-Co?

It should be noted that the rental of gear was not the most burdensome. For any airline, it is the purchase of the fuel that costs the most. Nevertheless, the acquisition of the Boeing is a great relief for Camair-Co. We can now invest in other things, such as executive training and general staff upgrading. This is very important for a company. Besides that, we can much more easily develop and launch the marketing of more reliable products, both in domestic and regional network. In short, we will gain in flexibility, hyper beneficial.

Q. What steps still need to be taken after the Boeing buyout?

The acquisition of the Boeing is part of the first phase of the investments made in the company's restructuring plan. But a lot still has to be done at the level of transparency and management.

Source:

http://www.cameroon-tribune.cm/articles/7880/fr/