How high costs are pushing Nigerian airlines to the brink — Ibom Air MD

Nigerian airlines confront an existential crisis, driven by a confluence of high operational costs and systemic inefficiencies, according to the Managing Director of Ibom Air. The airline executive highlights that exorbitant aircraft financing represents the single largest impediment to profitability, severely impacting carriers' bottom lines and hindering their ability to compete effectively in the global market. This financial burden, often overlooked, directly erodes potential profits, making sustainable operations a constant uphill battle for Nigerian operators.

Beyond financing, the industry struggles with suboptimal aircraft utilization and reliance on costly external maintenance. Nigerian airlines typically operate their fleets for only five to six hours daily, a stark contrast to the global average of ten hours. This underutilization translates into a staggering loss of 720 to 1,080 flights per aircraft annually compared to international competitors, representing significant foregone revenue. Furthermore, the necessity of conducting aircraft maintenance outside Nigeria not only inflates costs but also introduces logistical complexities, making efficient operational planning exceedingly difficult.

To navigate these formidable challenges, the Ibom Air MD proposes a multi-faceted strategy. Securing cheaper aircraft financing is paramount, alongside developing in-country maintenance capabilities to reduce reliance on foreign services. Crucially, airlines must enhance aircraft utilization rates to align with international standards, maximizing asset productivity. The executive also stresses the imperative for fleet expansion, arguing that a minimum of 10-20 aircraft is essential for an airline to achieve sustainable profitability and scale. Finally, a concerted appeal to the Nigerian Government is necessary to lobby for a reduction in the numerous domestic charges and exorbitant regional fees that currently stifle profitability and impede intra-African air travel, ensuring a more conducive operating environment for the nation's carriers.