In this analysis, ANOZIE EGOLE takes a look at the sudden proliferation of airlines in Nigeria and its implication in the industry
The Nigerian aviation sector, over the last six months, has witnessed what could be described as a sudden boom, with the emergence of over 11 airlines. For instance, in February 2021, United Nigerian Airline commenced full operations with the introduction of a number of aircraft.
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Africa’s biggest in Nigeria
One of the airlines was expected to start operations with about 50 Airbus A220 aircraft in its first year of operation. The other two are bringing in five aircraft each on the average. This number will add to the existing 40 planes currently operating in Nigeria’s domestic market.
Though Green Africa Airways is yet to commence operations, it has ordered 50 A220s jets from European plane maker, Airbus, for over $4bn, in a deal that now stands as the largest aircraft purchase by any African airline.
The airline will become Africa’s biggest by fleet. Air Peace, Nigeria’s biggest carrier, has 23 planes. But Green Africa’s capacity will be more than double that number.
The new airline also agreed to lease three Airbus A220s from Irish lessor, GTLK Europe. It will introduce the three Pratt & Whitney PW1500G-powered twinjets by August this year. The carrier promised to “bridge the gap” until deliveries of its own A220s begin in 2021.
The million-dollar question
Now, with about 100 aircraft in the country’s travel market, where less than five per cent of citizens are able to afford air travel, how functional are these airlines and how far have they affected the sector.
Meanwhile, investigations by Financial Street show that only six airlines have got the Air Operators Certificate from the Nigerian Civil Aviation Authority.
Financial Street also discovered that the NCAA is very strict in the issuance of the AOC to airlines, as they want to ensure that all the necessary measures are put in place.
A poor start
A ticketing officer at the Murtala Muhammed International Airport, Lagos, who gave his name as Michael Obi, told Financial Street that the new airlines had not done well for themselves.
The effect of the new airlines, he added, has yet to be felt in terms of passenger throughput.
His words, “They are yet to carve a niche for themselves. People still believe in the old airlines they know before now. The news ones have not done well for themselves.
“I think they need to create more awareness in that regard, let people know about the flights. To me, they are yet to earn their market share.”
Competition looms
Describing the development as a good one for the country, an aviation analyst, Mr Muhammad Usman, added that it would create competition among the airlines.
According to him, the atmosphere at the airport does not depict that there are new airlines, as they are yet to create their own market.
“It is a good development for the country, though it could create cold shivers for existing airlines. In every free market, competition is a key element and that is what brings fairness into the market.
“I talk of fairness in terms of willingness to improve service on the part of airlines and the opportunity of choice for the consumer – the travellers. It should not cause any airline to go under, except such airline does not mean business in the first place,” he said.
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