Arik Air will on Tuesday sign N35bn syndicate facility with a consortium of eight Nigerian banks.

The amount, according to a statement by the airline‘s Media Officer, Mr. Adebanji Ola, is for the acquisition of five Boeing 777-300ER aircraft.

The facility, represents the first ever successful agreement in the Nigerian aviation financing history.

The banks include Zenith, Union Bank, Intercontinental, Skye, First Inland and Afribank among others.

The statement, which was obtained on Saturday said the secured loan was being coordinated by Zenith Capital and described it as a significant step in the airline‘s strategy to offer world class services.

Based on Arik future plans, it said it would require over 50 new aircraft worth in excess of N350 billion in the next 10 to 15 years.

The Managing Director, Arik, Mr. Michael McTighe, said that the demand for direct air services and air transportation links within the continent, coupled with liberalisation and increased cooperation between governments in the region were expected to drive strong growth in passenger traffic and aircraft demand.

Such financing agreements, he added, would create a number of broader economic benefits for the country‘s economy. In addition to the jobs created directly, this has an indirect positive impact on the labour market.

He said, ”Aircraft are an excellent investment since they have long economic lives and mobile assets, providing the opportunity to deploy them within our operations and also between our subsidiary companies. We work with our financial partners to obtain their input to enhance this mobility.”

He added, ‘This financing agreement is a natural strategic step for Arik Air as we seek to expand our existing aircraft financing capabilities. It will allow us to build on our expansion while also enabling us to compete on a global scale.”