North East Shuttle: Can Nigeria's N30 Billion Regional Airline Fix Underserved States?

The planned North East Shuttle regional airline is receiving support from aviation stakeholders.

Six states in Nigeria’s North East region are collaborating on the project. These states are Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe. The goal is to improve Nigerian regional air connectivity in the area. The region is currently considered one of the country’s underserved Nigerian states.

Addressing a Connectivity Crisis

The six states are pooling N30 billion to establish the new carrier. This funding is intended to provide a stable, locally-owned air transport system. The initiative aims to reduce reliance on existing commercial airlines. Many carriers often withdraw services due to persistent security concerns in the region. The states plan to initially acquire two aircraft. These aircraft will connect the state capitals to major hubs like Abuja and Lagos.

Promoters believe the airline will boost economic activities. It is also expected to ensure steady flight operations and create jobs. The project builds on earlier initiatives that began in 2020.

Regulatory and Financial Status

As of the recent announcement, the Nigeria Civil Aviation Authority (NCAA) has not yet received a license application for the new airline. The N30 billion airline investment is approximately $21.1 million at current exchange rates. This figure is a key point of discussion among industry experts.

Expert Analysis and Caution

Industry leaders have offered both commendation and caution regarding the plan. Captain Ado Sanusi, the Managing Director/CEO of Aero Contractors, acknowledged the region’s need for air service. He agreed that the North East is significantly underserved.

However, Captain Sanusi stressed that states should not directly operate an airline. He suggested they should instead acquire aircraft and hand them over to professionals. This arrangement would be under a lease agreement. This model ensures professional management and aircraft utilization. He also questioned the investment in an airline before meeting critical needs. These needs include healthcare, education, and basic infrastructure.

Fleet Strategy and Funding Concerns

The N30 billion airline investment presents a challenge for aircraft acquisition. Captain Sanusi noted the funds would not purchase a new aircraft like the Boeing 737 MAX. It might cover a vintage Boeing 737-700 or two Bombardier CRJ 900s. He argued that two aircraft are insufficient to start a viable airline.

Isaac Balami, CEO of 7 Star Global Hangar, supported the project as long overdue. He noted that outside airlines would not develop the region’s local routes. Balami, an aircraft engineer, emphasized the need for the right equipment for short regional flights. He suggested smaller turboprops like the Beechcraft 1900D or the Bombardier Q400 Dash 8. These aircraft are better suited for the passenger throughput on intra-regional routes. Using larger jets, like the Boeing 737, on short routes can shorten the aircraft’s lifespan.

Regional Airline Establishment Challenges

The regional airline establishment challenges in Nigeria are significant. The country’s aviation sector faces issues with ageing aircraft fleets and inadequate maintenance. The lack of standard Maintenance, Repair, and Overhaul (MRO) facilities is a major factor. This often shortens the average lifespan of Nigerian aircraft to about 10 years.

Furthermore, airport infrastructure limitations and security concerns persist. The new North East Shuttle regional airline must overcome these systemic issues. It must also ensure strong corporate governance to succeed where others have struggled. The initiative represents a critical opportunity to open the region for commerce and investment.

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