By Jeph Ajobaju, Chief Copy Editor
Green Africa Airways has acquired its first aircraft to operate from its base in Lagos, raising its stake for a slice in a tight market for which the Nigerian Civil Aviation Authority (NCAA) is vetting new applications for operating licences.
Green Africa plans to take delivery of three ATRs through an agreement with ACIA Aero Leasing, part of ACIA Aero Capital based in Mauritius with leasing offices in several countries, among them Ireland and France.
Nigerian aviation seems to be defying the norm as about 23 airlines (investors) are seeking to start operations in the country, according to what NCAA) General Manager, Public Relations, Sam Adurogboye, told Nairametrics.
Some new entrants have expressed interest to own airlines, others have reached various stages in the acquisition of their Air Operators Certificates (AOC).
They include NG Eagle and Green Africa, both of which have reached an advanced stage in AOC acquisition, Rano Air, and Northeast Shuttle.
“We are currently treating and vetting about 23 applications. More are still coming to operate in Nigeria because they know and believe that there are several opportunities in the sector,” Adurogboye disclosed.
“Most importantly, a lot of them have seen the way safety issues have been tackled in the sector recently. These are the factors that must have boosted investors’ confidence in Nigerian airspace.
“It’s a good thing to desire to come onboard. The process is a black and white thing. What you need to do in one phase to go to second, second to third, you fulfil it and the team that is in charge work as a team.
“It is not by the director-general at any particular time. It’s a team of engineers, airworthiness inspectors, medical. It’s a team and nobody can influence the other.”
Aviation experts express concern
However, aviation experts counter that Nigeria does not need more airlines but wide body aircraft, a friendly business environment, and access to cheaper funds.
An aviation consultant, Muyiwa Lucas, told Nairametrics that the country needs wide body aircraft to take more passengers and compete favourably with foreign carriers.
“Currently Nigeria is experiencing low capacity. There are not enough aircraft seats to meet the demand of passengers,” he argued.
“If airlines use bigger aircraft that can take more, it is cheaper than two or three airlines plying the same route and at the end of the day, they are not filled.
“So many people would want to fly now considering the security threats on the road; and air travel is also the fastest, safest and most reliable means of travel.”
Another obstacle to aviation growth in Nigeria is a lack of cheaper credit.
David Olubadewo, a pilot and managing director of Starburst Aviation based in the United Kingdom, said most Nigerian airlines and other industry players cannot access cheaper loans because banks believe the sector is too hazardous to invest in.
“But that is wrong. It is not different from other sectors,” he insisted.
“We are all in it to make a profit at the end of the day. I don’t obtain loans from Nigerian banks, because I will end up with a 25 per cent loss or more, but that is not happening in the UK where I pay far less interest rates.
“If I take such a loan in Nigeria, it means I am -25 per cent (interest rate) in red, and by the time you get to the top, you are owing millions. I cannot approach any of the banks to give me local to do business in Nigeria. If I can go through that, you can imagine the experiences of the airlines.”
Phases of AOC acquisition
According to Nairametrics, a prospective airline operator passes through three phases to obtain an AOC in Nigeria.
Phase 1
The NCAA appoints a certification team and processes the pre-application statement of intent form (AC-OPS 001).
Discussions on all regulatory requirements, the formal application, and attachments and any other related issues take place. This usually lasts a week.
Phase 2
A formal application with documents and manuals (including the curriculum vitae of key management personnel) is submitted for evaluation. The minimum time frame for this phase is two weeks.
Phase 3
The NCAA evaluates the manuals and other documents to ensure conformity with regulations and safe operating practices. The minimum time frame for evaluation phase is three months.
Simple, straight forward process
Adurogboye explained that the process is simple and straight forward enough and the requirements are not meant to deter any investor but to show capacity for safety.
He said the most critical stage is the handing over of the AOC to the operator, and new airlines take off once they fulfil all the requirements.
Green Africa with lofty ambitions
Per FlightGlobal reporting, the ATR 72-600 aircraft Green Africa Airways acquired, an initial turboprop (5N-GAE), was originally delivered to Brazilian carrier Azul in 2012 and subsequently operated by Air Tahiti.
It arrived the Murtala Muhammed International Airport, Lagos bearing a temporary South African registration, ZS-XZD.
Green Africa said a second former Azul aircraft (5N-GAA) and a third ATR, to be registered 5N-GAD, have undergone painting and the company is on the “final lap” of the AOC process. This will include demonstration flights on the network.
Green Africa founder and Chief Executive Babawande Afolabi, disclosed that ACIA has been a “very supportive partner”.
He added: “Arrival of our first aircraft is a precursor to the completion of our AOC process. Very soon, customers from across Nigeria will be able to make bookings on our website and take their first flight with Green Africa.”
Green Africa has been looking to build a jet fleet, unveiling a preliminary commitment for 50 Airbus A220s last year following an earlier tentative agreement for up to 100 Boeing 737 Max 8s.
It appeared to underpin its A220 ambitions last year with a deal to lease three A220s from the leasing firm GTLK Europe based in Ireland, which took delivery of a fleet of six A220-300s in 2019.
Green Africa has yet to confirm the status of the A220 agreements.
Its initial ATR 72-600 was received in a ceremony which included several senior figures from the airline as well as its institutional investor, Kuramo Capital.
ACIA Aero Leasing Chief Mick Mooney said the air transport industry has been undergoing “significant disruption …. There are a few carriers with a strategic roadmap, such as Green Africa, that are looking to provide effective solutions that the current market opportunity brings.”