Rekindling Hope in Nigeria Airline Growth

Airline business is fraught with challenges in Nigeria, from high cost of jet fuel, to numerous charges, but last week, United Nigeria Airlines received two state-of-the-art aircraft, thus signaling new growth trajectory in the sector, writes Chinedu Eze.

It was celebration galore last week at the General Aviation Terminal (GAT) section of the Murtala Muhammed International Airport, Lagos, when the fast-rising United Nigeria Airlines welcomed two modern Boeing B737-800NG aircraft.

What gave spice to the ceremony was the fact that he named the two aircraft after two great Achebes; the renowned novelist, the pioneer of African literature and the writer of Things Fall Apart, one of the 50 most influential books of all time, Professor Chinua Achebe and His Royal Highness, the Obi of Onitsha, Igwe Alfred Nnaemeka Achebe.

Industry analysists are of the view that the Boeing 737-800 NG (New Generation) is one of the most successful and reliable narrow-body aircraft in aviation history. It uniquely balances medium-haul range, high seating capacity, and operational efficiency, making it the workhorse for major global carriers. United Nigeria Airlines purchased six of the aircraft type and two have been delivered and for would be received at later date.

The elated Executive Chairman of United Nigeria Airlines, Professor Obiora Okonkwo, in his opening speech said the decision to name the aircraft after the two eminent personalities was deeply symbolic and reflected the airline’s commitment to preserving and promoting Nigeria’s heritage.

He explained that the late Chinua Achebe, author of the globally acclaimed Things Fall Apart, shared roots with him in Ogidi, Anambra State, and played a pivotal role in introducing Africa and its stories to the world through literature. He described Achebe as one of Africa’s foremost cultural ambassadors, Okonkwo requested a moment of silence in his memory.

Aircraft Acquisition

Speaking about the Obi of Onitsha, who attended the ceremony, Professor Obiora described the monarch as an elder statesman and highly respected traditional ruler whose wisdom and leadership have guided generations.

“His Royal Majesty is an elder statesman, a respected leader, hardworking and humble in his ways, deeply traditional, and loved and admired by the public. What makes this occasion different is that, for the first time in Nigeria, we have aircraft bearing these particular names that carry real significance, and that came to Nigeria only after a great deal of sacrifice, hope, and effort to give our nation a better direction in aviation,” he said.
Okonkwo in his speech also disclosed that the two Boeing 737-800NG aircraft being cerebrated were only the first deliveries from an original order of six aircraft purchased by the airline, remarking that the additional fleet would strengthen the airline’s operations and further position it for increased domestic and regional connectivity.

Challenges

Obiora recalled that Nigeria’s aviation industry had, until recently, faced severe difficulties in attracting international aircraft financing and leasing opportunities, noting that lessors and financing institutions became reluctant to engage with Nigerian operators, effectively shutting the country out of the global aircraft leasing market.

He credited the recent turnaround in the perception of Nigerian carriers to efforts being made by the Minister of Aviation and Aerospace Development, Festus Keyamo, observing that the Minister’s engagement with Boeing three years ago helped restore confidence among global aviation stakeholders and reopened financing channels for Nigerian airlines.

The airline’s Executive Chairman also highlighted the high cost of doing business in Nigeria, citing a recent report by the International Air Transport Association (IATA), which ranked the country among the most expensive environments globally for airline operations.

He urged the federal government to ensure that revenues generated for the Nigeria Civil Aviation Authority (NCAA) are retained within the aviation sector and utilised for industry development instead of being transferred into the Federation’s consolidated revenue pool for unrelated expenditures.

Okonkwo further advocated for the provision of single-digit interest loans to airlines and stronger partnerships between the Bank of Industry and commercial banks to guarantee single digit, long term loans for airlines.

Healthy Competition

The Chairman and CEO of Nigeria’s leading carrier, Air Peace, Dr Allen Onyema, while congratulating Professor Okonkwo, spoke on how United Nigeria Airlines, Air Peace and other members of Airline Operators of Nigeria (AON) have been working together, saying that the operators have jettisoned the acrimonious relationship of the past, which had kept them backwards, emphasising that it is good to be competitive but let it be healthy competition.

He recalled how he encouraged Professor Okonkwo to go for the Boeing B737-800 NG when it was advertised and he eventually succeeded in acquiring six of the aircraft.

“I told my younger brother (Okonkwo) don’t ever miss this opportunity. The things (the aircraft) you are seeing here, they don’t come cheap. If he were fickle-minded person he would not have gone for the aircraft; he would rather say, let me stay where I am. I told him, whatever it will take to acquire these birds, acquire them.

“If I did not want him to grow, I would not have told him to do that. So, it is my joy today that I am seeing United Nigeria becoming the second largest airline in the entire West Africa. I am not even afraid of him over taking Air Peace. Because the sky is too big for all of us,” he said.

He also recalled how he has been encouraging an incoming operator, Dr Oludare Akande, the CEO of Bellagio Airline Limited, saying that the airlines need to support one another to enable them to grow, an appreciable change from the past when animosity defined the relationship of domestic carriers.

“We can compete and still be friends, and still do things the right way. We in AON this is what we preach presently. We can compete, but we remain friends. We can share ideas. Professor Obiora Okonkwo, when he was coming into the system. If he was coming into the system and looking at Allen Onyema as his greatest problem, he may never be where he is today. Because I am just about less than six feet tall. You are looking at me, and I am looking at the skies. And today, we can see how ferociously this airline is growing. 

Air Safety

Onyema also spoke about safety in air travel in Nigeria, saying that the Nigeria Civil Aviation Authority (NCAA) under Captain Chris Najomo, has significantly improved safety of Nigeria’s airspace, noting that the ease of doing business may not be a smooth one but air safety is not compromised.

“One thing I want to assure the flying public is that the Nigerian skies are one of the safest skies in the world. When we talk about ease of doing business in Nigeria, please don’t get me wrong. The Director General of NCAA, Chris Najomo, is not compromising our safety. The ease of doing business has to do with those bureaucratic bottlenecks that have been embedded in our system over the years. The regime of Festus Keyamo (Minister of Aviation and Aerospace Development) brought his weight to bear on then and said, this has to stop. I remember in the years of the old, when we wanted to import aircraft, you have to know who knows the minister. And you have to meet the minister for him to give you permit before you can import an aircraft. Today, you don’t need to know any minister. Just send your application that you want to import an aircraft and it is done. 

“Today, we have a minister traversing all over the world for the sake of indigenous operators in this country, indigenous business. When governments begin to support indigenous investments, that is when economies of any country will start to make money and grow. And this is what he has done.

“We are here today, courtesy of this man who took my brother to the United States. That was really the beginning of what we are saying here today. The aircraft is powerful. One of the most powerful single aisle aircraft you can think of. They have bought it, so you must support United Nigeria. We are in an era when we must begin to support our own.

“When I mean our own, I am referring to the Nigerian, indigenous businesses; no matter where they come from, no matter the region of this country they come from, stop looking at the ownership of Nigerian businesses. Stop looking at the shareholding of businesses of Nigerian origin. Look at the kind of legacies they are bringing in. Look at the impact they are making on the economy. Look at the jobs they are creating. Don’t get fixated on the shareholding of any business,” Onyema said.

Fleet and Destination

United Nigeria Airlines started flight service on February 12, 2021 with a fleet of four 50-seater Embraer ERJ-145LR aircraft. The maiden flight was Lagos-Enugu route and since then the airline has significantly expanded its network and aircraft acquisition. It has connected many cities in Nigeria and last year it kicked off West Coast service with Abuja-Accra, Ghana route. Currently the airline has four Embraer ERJ 145 aircraft, two Embraer E190 aircraft, two Bombardier CRJ-900 aircraft, four Airbus A320-200 aircraft and the latest in the fleet, the Boeing B737-800NG aircraft, making it a total of 14 aircraft with potential 18 aircraft when the remaining four Boeing 737-800NG are delivered. So far, United Nigeria Airlines has been successful in his first foray out of Nigeria, the Abuja-Accra flight service and the airline intends to operate to Texas in the United States, to Turkey and also aims to fly to Canada.

Having made its desire known, THISDAY learnt that on hearing that the airline would operate to the US, the US major carrier, United Airlines has sued the Nigerian airline, saying that it must not operate to the United States because the name United Nigeria Airlines and United Airlines sounds the same. Reacting to this, spokesman of United Nigeria Airlines, Chibuike Eloka, confirmed the case instituted by the US carrier and disclosed to THISDAY that United Nigeria Airlines has legal representation on the case.

Eloka also told THISDAY that United Nigeria Airlines wanted to wet lease an Airbus A330 from the Turkish based lessor, Air Anka for the operation of the US route, but United Airlines blocked the move.

Aviation industry magazine, Ch-Aviation confirmed this in one of its publications and in its LinkedIn post indicated that United Airlines “has rejected to the wet lease of an A330 by United Nigeria Airlines from Air Anka, arguing that United Nigeria is infringing United’s trade mark rights and could cause irreparable harm to its brand, operations, and reputation in the United States.”

But the Nigerian carrier seem undeterred in its aspiration to fly beyond the seas to the Americas and to Europe, as it is poised to extend its regional operations.

Supporting Nigerian Carriers

The Minister of Aviation and Aerospace Development, Festus Keyamo, who attended the historical event explained that one of the responsibilities of a good government is to support the private sector, empower the private sector so that it will continue to complement the efforts of government. He said this is the reason why the President Bola Ahmed Tinubu government is supporting the airlines, to empower them to success so that they will create jobs for Nigeria’s teeming population.

“We are giving United Nigeria New York. We are giving you Canada. We are giving you Dubai. We are giving you some very, very fruitful routes now. We are only looking for the equipment to run these routes right now. And rightly so too, because if you look at the traffic in Nigeria, the passenger traffic, the air traffic, 90% of the air lift from Nigeria to all parts of the world is not by our local carriers. I want you to think about this. 90%, even 95% of our passengers flying out of this country to Saudi, to other parts of the world, to UN use foreign airlines. It is only Air Peace that operates to London. So, that market is our market. It doesn’t belong to anybody,” Keyamo said.