Chinedu Eze
Experts in aviation industry are of the view that the investments in state-owned airport hubs by Akwa Ibom and Enugu states will likely expand air travel market, increase evolving capital in the sector and effectively service hitherto underserved destinations.
The experts said state-owned carriers like Ibom Air and Enugu Air have injected billions of naira and vital operational capacity into Nigeria’s aviation industry, fundamentally changing regional connectivity and economic growth.
According to the experts, both states have also created hundreds of jobs in the industry and have trained a lot of technical personnel, including pilots, cabin crew and engineers in addition to ground staff stationed at different airports in the country.
Akwa Ibom has modernised its airport, which was recently designated international by the federal government and it is now Victor Attah International Airport Uyo.
The state established Ibom Air, which many industry observers described as promising carrier, already operating regional service, using Uyo airport as operational hub.
Also, Enugu State government established its own carrier, Enugu Air and this year obtained Air Operator Certificate (AOC) after its affiliation with Xejet.
The state is also developing the Akanu Ibiam International Airport, Enugu, recently concessioned to Aero Alliance, which is serving as operational hub to Enugu Air.
Industry observers said that the two states may push for new trajectory that may shift attention from the popular triangular destinations of Lagos, Abuja and Port Harcourt dubbed the most lucrative destinations in the domestic market.
Travel expert and organiser of Akwaaba African Travel Market, Ambassador Ikechi Uko, said there were vacuums in the domestic air travel markets that have not been exploited because private investors who establish airlines are desirous of making profits and may not want to expend resources developing new routes. So, they go for already established, profitable routes in order to have quick return on their investment.
He recalled that during the time of the Nigeria Airways Limited, the nation’s defunct national carrier, every part of the country was connected by the airline, which served all the airports, including the ones that might not have good returns.
According to him, the two states can develop destinations that are currently underserved and in future they may become lucrative destinations.
“What I have witnessed happening in other countries is that privately owned commercial airlines look at money, how to make profit and justify their investment, but during the time of Nigeria Airways, the airline operated to all the airports. This is the difference between a national carrier and private owned airlines. National carriers can invest in the development of new routes, which may not be profitable at the beginning.
“For example, Ethiopia Airlines serve every airport in the country. The airline provides service to these airports but its priority is not profit but to make sure the country is connected by air.
“So, Akwa Ibom and Enugu owned airlines can afford to develop some routes whether they are profitable or not at the beginning and connect them to other parts of the county,” he said.
According to Uko, there is a lot of underserved market because Nigeria does not have well developed general aviation, which ought to provide short flight services to some airports and airstrips bigger aircraft cannot go to.
He said Kenya had two major airports in Nairobi and Mombasa but it has airstrips which small aircraft with 12 or more passengers fly to, thus connecting the entire country by air.
“What general aviation is supposed to do is to connect these underserved destinations, but these could be good market for Enugu Air and Ibom Air. They can afford to develop these routes and create markets from them,” he said.
Speaking in similar vein, former Minister of Aviation, Osita Chidoka, recently observed that the establishment of Enugu Air remained a practical example of how strategic government intervention could stimulate economic growth and unlock new markets
He said there were indications of increased economic activities at the Enugu airport, showing injection of new capital and increase in businesses in Enugu State.
According to Chidoka, when there is increase in business, it will show in the number of people that travel through the airport.
“I walked to board my Air Peace flight from Enugu this morning, I could not resist taking a short video of two Enugu Air aircraft parked alongside our Air Peace aircraft. The terminal was busy, and all three flights appeared full.
“The Enugu Air flights had arrived from Abuja and Lagos—a smart strategy. By night-stopping aircraft in both cities, the airline can bring passengers into Enugu early in the morning and then return with passengers travelling to Nigeria’s two busiest destinations.
“Our Air Peace flight, a Boeing 737-800 in an all-economy configuration, was also full. This is how route development works. Over time, passenger traffic grows because travellers gain confidence that they can reliably get in and out of a destination”, the former minister said.
He gave kudos to the Enugu State government for establishing an airline, saying that the government need to inject capital into the economic system to galvanise it, adding that no country has ever grown with private capital alone; that government ought to intervene from time to time
The Executive Director of Ibom Air, George Uriesi, said the Uyo airport would serve as regional hub to connect Central Africa and West Coast. He said the airline may not operate to Europe and the United States, but it would operate in Africa and has already started with flight service to Accra.
At the ongoing Farnborough, International Air Show going on in United Kingdom, Enugu Air is one of the few African carriers in attendance.
The state’s presence, THISDAY learnt, is part of Governor Peter Mbah’s strategic vision to reposition Enugu as Nigeria’s premier aviation, business and investment hub through sustained investment in the state’s aviation ecosystem and the development of a commercially competitive airline.
It underscores the administration’s aviation strategy, designed to unlock new opportunities for trade, tourism, investment, job creation and stronger international connectivity for Enugu State.
Industry pundits are also of the view that while many states established airline business, not many of them would sustain them. They however said Akwa Ibom and Enugu states have shown uncommon commitment by going beyond just establishing an airline, but also building a hub to develop new routes, provide service to hitherto underserved routes and create job opportunities for their citizens.
