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Home » Liberia’s Congo vs. Country Divide: Exposing the Ignorance, Shortsightedness and Limited Worldview

Liberia’s Congo vs. Country Divide: Exposing the Ignorance, Shortsightedness and Limited Worldview

by lnn

In 1980 the New PRC Government inherited several aircraft from the deposed True Whig Government. A brand new 737-100, HS 748 and other smaller fixed wing planes.  The 737 was financed by Morgan Guaranty at 23 Wall Street. I know that because I worked at Chase in the late 70s and had friends at Morgan. We drank at McCoys on Maiden Lane and snorted the white lady. Only legends will know this.

By: Samuel P. Jackson, contributing writer

After the coup due to changing financial circumstances the IMF demanded that the government sell the 737. It was bought for about 11 million but due to demand the price had gone up to around 13 million dollars. The Boeing 737 is one of the most successful planes in history.

GOL owed about 8 million on the 737 to Morgan. In 1982 long after I had left the PRC Government to go back on Wall Street the government put out a bid for the aircraft. It was won by LINA, the national airline of Congo Brazzaville for 12.8 million dollars. In November of 1982. So GOL paid off its debt and had the balance. I am not going into what the government did with the balance, it will piss you all off.

Here today, 42 years later, 21 years after war, the GOL of so called native educated sons and daughters can’t find creative means to finance even a local airline with helicopters or fixed wing aircraft.

Here is the deal. This is for my friend Wynfred Russell. Airplane finance is not rocket science. Since the planes fly internationally they are moderate risks to finance. The planes are collateral. They can be seized in any country they fly to by the lien holders. There are required maintenance schedules to operate to be airworthy. The pilots must be internationally certified. The Cabin Crew must be acquainted with the particular aircraft. Catering companies provide the food. Wholesale stores provide the duty-free items. Ground crews must be trained and certified. If you create a national airline no matter how small, regional or global there are economies of scale and multiplier effects.

Now let’s look at financing. You can buy aircraft based upon the range and passenger and cargo configuration. Most short haul jets are priced under 50 million dollars with used airworthy planes around 12 to 15 million. You can buy an Embraer 195 for about 50 million. Used for way less than half. Two can get you started on a regional airline. Freetown, Conakry, Monrovia, Abidjan, Accra, and on to Lagos. You can get started for around 100 million dollars. You can get An Airbus for around 100 million new and used at about 25 million. Major airlines retire their aircraft regularly but many remain airworthy and are sold to poor countries. Airplanes are the safest form of transportation. Safer than cars.

You can lease, lease purchase or create financing plans with countries like Brazil, France and the USA for bilateral support. You can create alliances with strong global airlines to ferry their passengers to regional destinations. You can also create cargo operations from the U.S. and Europe to Africa. You can do charter flights to the USA and Europe seasonally.

My point. There are hundreds of well-educated, trained Liberians flying globally. Hundreds of Liberian cabin crews. Hundreds of Liberian global finance experts from top firms. JP Morgan. Credit Suisse. Bank of America. Stanbic. These finance professionals can design a prospectus or pitch desk with de-risking formulas to finance an airline. Even with just two short range aircraft. But the country running the government will not seek help. They think their war time college degrees from Liberia are enough to run a country. They have no middle management experience in a global firm but they believe they can run a modern country.   That’s why I cussed their asses regularly. I myself am aware of my limitations and will cry for help.,

They’re making the Congau people laugh at us. They say since we overthrew their government the country declined. It’s not because we don’t have expertise but the country man doesn’t know how to work with their best and brightest. Next piece will be on how we can finance a major hydro project with creative financing. Power projects are low risk and attractive to public private partnerships. And so it goes.

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