‘….How new airline’ll survive peculiar hurdles’
It was an important occasion that attendees would never forget. Excitement and hope filled the air. The faces of many beamed with pride.
The day was Friday, June 7, 2019, when former Governor Udom Emmanuel of Akwa Ibom State, alongside some government officials, launched Nigeria’s first state-owned airline.
During the inaugural flight, a Bombardier CRJ900 aircraft bearing the Ibom Air livery took off from Victor Attah International Airport in Uyo and headed to Murtala Muhammed Airport in Lagos.
Six years later, a similar event took place in Emene, Enugu State, where Governor Peter Mbah inaugurated Enugu Air’s maiden flight at Akanu Ibiam Airport. Painted in dark green and white, with an eagle emblem, the plane, an Embraer E190, flew from Enugu to Lagos in the right degree of pomp.
The occasion soon reminded observers of Calabar’s Cally Air, commissioned by former Governor Ben Ayade in July 2021, but failed to obtain an Air Operator Certificate, AOC, after five years despite initial excitement.
In the air transport sector, an AOC is issued by an aviation authority, like the Nigerian Civil Aviation Authority, NCAA, authorising an aircraft operator to conduct commercial air transport operations.
AOC confirms that an operator has the personnel, equipment, operational procedures and safety management systems to conduct commercial air transport safely.
AOCs and clarifications
While Enugu Air is yet to obtain an AOC to enable independent operations from the get-go, the NCAA swiftly provided clarification on Enugu Air’s situation.
A statement by the NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, said Enugu Air designated XEJET as an operational partner pending the conclusion of its AOC process.
Achimugu said this is in agreement with NCAA’s five-phase certification procedure, adding that under this partnership, XEJET has completed a full variation process to integrate the EMB 170 aircraft into its Operations Specifications, OpsSpecs.
He stated: “As such, XEJET is duly authorised to operate scheduled commercial flights on behalf of Enugu Air under current NCAA guidelines. In the interim, ticket sales for Enugu Air flights are facilitated via the XEJET platform, accessible through a redirect on the Enugu Air official website.”
Achimugu’s statement regarding Enugu Air came less than a month after the Cross River State government expressed optimism about securing regulatory approvals for Cally Air.
In June, Commissioner for Aviation in Calabar State, Captain Eno Inah, retd, during a visit to Lagos Aviation Academy, LAA, a conglomerate of Finchglow Holdings Ltd, said: “Our application for the AOC is being processed by the NCAA. We expect to secure the Air Transport Licence within 90 days, which will then pave the way for the AOC.”
More airlines without passengers
Beyond concerns about two state-owned airlines rushing into operations without full certifications, industry observers also raised questions about why Enugu State would venture into the airline business, given the continued decline in domestic passenger traffic.
Their arguments stemmed from the fact that domestic throughput figures in 2022 were 16,172,433, which dropped to 15,685,272 in 2023, and then declined to 11,549,443 in 2024.
Procedural
However, an aviation analyst, Mr Olumide Ohunayo, who spoke to Saturday Vanguard, countered their views, saying that rather than finding faults, Enugu Air and Cally Air should be supported until they can obtain their AOCs.
Ohunayo, who is the General Secretary of the Aviation Safety Round Table Initiative, ART, argued that embracing an operational partner before obtaining an AOC is better than parking an aircraft on the ground after purchase.
Lending his voice to the issue, the analyst explained thus: “What you see from these state-owned airlines is that they brought this aircraft in, put it under airlines with AOC, and, during that period, they can see the margin and how they can operate it on their own. ValueJet also operated the same model.
They gave some aircraft to Arik, which it used for some time before they now became a full airline.
“You will find out that oftentimes, they (state governments) are always eager to acquire an aircraft. Once they acquire an aircraft, they begin to think about the processes they have to go through before commencing operations.
That is why you see that these aircraft are under one airline for a long time, rather than being parked on the ground. Upon purchasing an aircraft, they begin to work on employing their crew, engineers and all those responsible for its operations. They use that period to train, recruit and plan.”
Bad schedule
On Cally Air, Ohunayo noted that Cross River currently suffers from poor flight schedules, with airlines operating only two or three times a week.
He said: “I think it (Cally Air) is strategic, and it will complement tourism. It will also help parts of Benue and Taraba states. I think Cally has a future if well-planned. Moreover, they are building another airport around the Obudu area. I can see they no longer go for Boeing. They now go for the ERJs and the midjets. That is good for them. They should look for smaller aircraft to operate the short routes from their base.
“Places like Calabar to Port Harcourt; Calabar to Benin; Calabar to Owerri; Calabar to Obudu. It is about six hours to get to Obudu from Calabar by road.
Expensive fares
“For Enugu, if you look at the Eastern part, it has the most expensive fares. I think that is one of the things that spurred government to partake in the air transport business. Moreover, Enugu is always full. Due to demand on the Enugu route, fares are a bit high. Considering they are also working on the Enugu airport, I want to encourage them because they are looking at the aviation economy being totally under their control, like Akwa Ibom State.”
Underserved
For the Chief Executive Officer of Belujane Konzult, Mr Chris Aligbe, states are investing in the airline business because they are underserved by existing carriers.
Aligbe, however, questioned the trend of rushing to start operations with a technical partner, saying it is an indication of their unreadiness.
Speaking to Saturday Vanguard, he said: “Why can’t they carefully sit down and plan? It (operating with a technical partner) is not sustainable, and they must work to get their AOCs as soon as possible.”
On the reasons Calabar and Enugu governments decided to start airlines, he said: “Their states are not well-connected by air services. Take a look at Cross River. At one time, they had about four airlines going there. But at some point, there was no airline going there. Even for those who go, it is not daily. That was what drove them to start Cally Air. How many airlines go to Enugu? At one time, it was just one. Enugu airport controls one of the five air traffic emporia. It is just like Kano, Port Harcourt, Abuja and Lagos. It is not served by airlines. That is what is driving states to invest in airlines. Otherwise, states have no reason to get into the airline business. If we had a vibrant flag carrier or national flag carrier, they wouldn’t be doing this. The money would be used to either develop tourism or put into other areas.”
Funding and management
On challenges Enugu Air could face, he said: “Funding. Even though Ibom Air has done a lot to go for capitalisation, you can see that Cally Air is not capitalised at all. Enugu Air has started well with three aircraft, but that is not all. When government changes, continuity is usually lacking. And once continuity is not there, the airline will begin to fall. It won’t get the support it should get from its investor, which is government. The next thing is interference in management.”
Advice
Aligbe, however, urged the Enugu State government to immediately give up a significant percentage of Enugu Air’s equity.
He said: “It should hold 40 per cent and give 30 per cent for investment by people from the state. For the remaining 30 per cent, they should quickly seek a foreign partner. That way, there will be limited interference.”
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