The governor disclosed this information at a recent Lagos
West Senatorial District People’s Town Hall Meeting, unveiling intentions for
the airline to accompany the upcoming Lekki airport, scheduled for completion
under the current administration.
Ibom Air, conceived by Idom Emmanuel, the former governor of oil-rich Akwa-Ibom State, was established in 2019 and currently operates nine aircraft. The Lagos State government is optimistic that, with its significantly larger population and numerous revenue-generating commercial ventures surpassing any other state in Nigeria, it can quickly outpace Ibom Air once the Lekki airport becomes fully operational alongside Lagos Air.
Looking beyond Ibom Air, Lagos Air might find inspiration in
the successful China model, which has led to increased passenger traffic and
profitability for several airlines. With 16 out of 28 indigenous airlines fully
state-controlled in China, emphasising strong government support, investment,
and strategic partnerships, Lagos State can effectively utilise these features
for the development of Lagos Air.
An examination of these factors and how they have been used
could help the state government develop a workable model for the airline.
Government Support and Investment: The Chinese government
has provided substantial support and investment to its state-owned airlines,
enabling them to expand their fleets, develop infrastructure, and compete
globally. This support includes financial assistance, access to capital, and
favourable policies.
Market Dominance: Chinese state-owned airlines, such as
China Eastern Airlines, China Southern Airlines, and Air China, dominate the
domestic market due to their extensive route networks, efficient operations,
and competitive pricing. With China being the world’s most populous country,
there is a high demand for air travel, which these airlines effectively
capitalise on.
Strategic Partnerships: State-owned airlines in China have
formed strategic partnerships with international carriers, joining global
airline alliances such as SkyTeam and Star Alliance. These partnerships enhance
their global reach, improve service quality, and facilitate code-sharing
agreements, allowing them to offer a wider range of destinations to passengers.
Government Control and Stability: Being state-owned, Chinese
airlines benefit from government control and stability. This ensures continuity
in strategic planning, regulatory compliance, and long-term investment,
providing a sense of security to both investors and passengers.
Modern Fleet and Infrastructure: Chinese state-owned
airlines operate modern fleets equipped with advanced aircraft, offering
passengers a comfortable and safe travel experience. Moreover, China has
invested heavily in airport infrastructure, including the construction of new
airports and the expansion of existing ones, to accommodate the growing demand
for air travel.
National Development Goals: Chinese state-owned airlines
align with the country’s broader development goals, including promoting
tourism, boosting trade, and enhancing connectivity. As key players in China’s
aviation sector, these airlines contribute to the country’s economic growth and
international influence.
In light of the above facts, find below the best 10 state-run airlines in the world.
Recent rankings by Simple Flying highlight the top 10
best-run state airlines worldwide, shedding light on their ownership
structures, financial performances, and operational scopes.
Turkish Airlines: With 340 destinations, Turkish Airlines stands as the world’s third-largest airline. The Turkish government’s Ministry of Privatisation Administration holds a 49.12% stake, contributing to its $3.2 billion profit in 2022.
China Eastern Airlines: Majority-owned by the Chinese
government, China Eastern operates 248 destinations, facing a $4.4 billion loss
last year. Notably, foreign investors like Delta Air Lines and the Vanguard
Group hold significant stakes.
China Southern Airlines: Serving 216 destinations, China
Southern boasts a fleet of 650 aircraft. Despite a $2.5 billion loss in 2022,
the carrier’s foreign investors, including American Airlines and the Vanguard
Group, play influential roles.
Air France: As a subsidiary of Air France-KLM, the French government maintains a 28.6% share. Noteworthy foreign stakeholders like China Eastern Airlines and Delta Air Lines contribute to its diverse ownership structure.
Air China: With a 53.46% stake held by the Chinese
government, Air China faces challenges, posting a $5.6 billion loss in 2022.
Cathay Pacific, representing Hong Kong, also holds a substantial interest.
Qatar Airways: Fully owned by the Qatari government, Qatar Airways profited over $1.2 billion in 2022, partly due to the FIFA World Cup. Political tensions, including the Saudi-led blockade, have impacted its operations.
To mark this milestone, the new service was inaugurated by
the airline’s state-of-the-art Boeing 787 Dreamliner featuring 22 seats in
Business Class and 232 seats in Economy Class.
Emirates: The Dubai-based carrier, fully state-owned,
operates over 130 destinations. Its parent company, the Emirates Group,
reported a $3 billion profit in 2022.
Vueling: Despite being a Spanish carrier, Vueling is owned
by the Qatari government through the International Airlines Group (IAG). Its
25.43% stake reflects Qatar’s influence within the conglomerate.
Korean Air: South Korea’s flag carrier, Korean Air, sees
diversified ownership. While the Korean government holds a 10% share, other
state-owned entities contribute to its stake.
Aeroflot: Russia’s flag carrier, Aeroflot, is 73.77%
state-owned. Amid geopolitical tensions and sanctions, its financial reporting
has faced challenges.