AKFED Aviation

completed

The Aga Khan Fund for Economic Development (AKFED) Aviation Services Division (the Division) is currently expanding its activities in both East and West Africa. The aim of the Division is to assist the airlines in maintaining the critical aviation infrastructure in support of economic development and to provide much needed regional airline services in Africa. The Project would consist of a corporate loan of up to US$25 million to the Division for on-lending to its three airlines: Air Burkina, Air Mali and Air Uganda, to allow the Division to consolidate all of its airlines and aviation activities and optimize routing, synergies and overall effectiveness across the Division’s airline operations. An Aviation Holding Company (AHC) may be set up for this purpose. Loan proceeds will be used to fund fleet acquisition cost (introduction of 9 refurbished MD-87 and 2 MD-83 aircraft) as well as other airline development costs such as: (i) the introduction of 4 leased CRJ-200 aircraft as of Spring 2010 including training of crews and engineers as well as purchase of spare parts; (ii) network extension in East and West Africa with the opening of new destinations and increased flight frequency; (iii) opening the Division’s airlines sales offices in key markets instead of use of third party sales agents; and (iv) improving the maintenance facilities of all 3 airlines.