New airline launch in Nigeria to offer customers more choices

Air travellers in Nigeria will soon have more choices as Green Africa Airways has secured its air transport license and has started work toward an air operator’s certificate (AOC).

This development is coming at a time when harsh operating environment has forced some domestic airlines in the country to suspend operations, while others have reduced fleet size, forcing them to restrict operations to certain areas in the country.

Olowo recalled that in 2010, Nigeria’s airlines had 54 commercial operating aircraft, but the fleet had reduced to 39 by 2014. BusinessDay’s Checks show that Aero Contractors, which used to have 10 aircraft in its fleet, currently has only two operational aircraft. Three of these aircraft are on maintenance; others have been returned to the leasing company.

Dana currently has three operational aircraft, having sent two two of them abroad for maintenance. First Nation has recently grounded its operations as all its aircraft are abroad for maintenance; Medview has four operational aircraft in the country and one abroad for maintenance.

Arik Air, the biggest domestic airline in Nigeria which had 28 aircraft on its fleet, presently has less than nine operational aircraft.

Experts say this development is hurtful for the sector as it does not create good competitive environment for airlines to operate as it could scare away investors and limit choices of passengers who want better services for their money.

However, with the launch of Green African Airway, experts say there may begin to be a change in the Nigerian travel market narrative as passengers will now have more choices and more revenue will be generated in the sector.

Green Africa Airways will be headquartered in Lagos; the new airline initially plans to operate domestic flights within Nigeria, using leased mid-sized jets.

“Our goal is to really develop the Nigerian market and create a strong home base. We want to make air travel accessible,” Babawande Afolabi, Chief Executive Officer, Green Africa Airways, said.

According to the Nigerian Civil Aviation Authority (NCAA), some airlines are also on the line for start-up and they are going through the test process towards AOC. Many Nigerian airlines including IRS, Discovery, Chanchnagi and others, went under recently. With the coming of Green Africa Airways, air travellers in Nigeria will have more choices.

BusinessDay’s checks show 18 firms have applied to the Nigerian Civil Aviation Authority to obtain the Air Operators Certificates to operate into and within Nigeria, while countries such as United Arab Emirates, (UAE), Netherlands, Turkey, Brazil, Qatar and Cote d’ Ivoire have requested for additional frequencies into Nigeria.

However, this development is coming at a time when Aero Contractors disclosed intention to reduce its work force to just over 60 per cent, amounting to 600 job losses. Arik Air, the biggest domestic carrier, has reduced frequencies from 120 flights to 15 flights daily, with a very low load factor indicating possible job losses in the nearest future.

“There could be no better time than now for the federal government to enter into mutual agreements with prospective airline operators to see how the ratio of Nigerians that will be employed in their airline operations,” John Ojikutu, Security expert and former commandant of the Murtala Muhammed International Airport (MMIA), told BusinessDay.

Ifeoma Okeke