Several airlines, including Air Peace, Ibom Air, and United Nigeria, have refuted claims of being blacklisted by lessors.
Several Nigerian airlines, including Air Peace, Ibom Air, and United Nigeria, have refuted claims that they have been blacklisted by international lessors. These allegations were initially reported on Wednesday.
It was previously reported by BusinessDay that 13 domestic
airlines were blacklisted by international lessors due to their refusal to pay
lessor fees. However, the airlines have clarified that the blacklist applies to
Nigeria as a country and not to the individual carriers.
The airlines noted that they do not have any outstanding
debts or disputes with its lessors at this time. It was further clarified that
the issues with lessors pertained to previous carriers and not the current
airlines.
United Nigeria Airlines’ Chairman and CEO, Obiora Okonkwo, confirmed
that the four aircraft in the company’s fleet are entirely owned by United
Nigeria Airlines and are not subject to any lease agreements.
“We have four airlines and they are fully owned by United
Nigeria Airlines. Leasing is part of airline business. We have zero obligations
with our lessors and they are happy with us. The issue is that there is a
blacklist on Nigeria and that has to do with country risk and the relationship
with airlines in the past,” Okonkwo said.
He confirmed that the minister of aviation is diligently
working to resolve the matter.
“What we are suffering now is betrayal from lessors. These
lessors are the ones that even come and take back the aircraft from Nigeria
airlines unlawfully,” Okonkwo noted.
He reiterated that while there is a ban on Nigeria for dry
lease, this is unrelated to the current airlines in operation.
It was also noted that only a small number of Nigerian
airlines are able to obtain dry lease aircraft contracts, which are more
lucrative for the airlines.
In a dry lease aircraft agreement, the aircraft owner
provides the lessee with the aircraft, excluding a crew. Neither party is
obligated to possess an air carrier certificate, provided that the aircraft is
not utilized for the transportation of individuals or assets for monetary gain
or rental. Typically, the lessee assumes operational control, encompassing
legal accountability for the aircraft under this specific lease arrangement.
In a wet lease arrangement, the owner provides both the
aircraft and the crew, assuming operational responsibilities such as
maintenance, insurance procurement, and other legal obligations. Consequently,
the lessor, rather than the airline, reaps the majority of the profits
generated from aircraft operations.
Nevertheless, Allen Onyema, the esteemed chairman of Air
Peace, firmly asserts that his airline has never sought any dry lease
arrangement with any lessor. He emphasizes that there is absolutely no
justification for the airline being blacklisted in the first place.
The airline's chairman confirmed that all of the airline’s
aircraft are wholly owned by Air Peace.
Ibom Air’s General Manager of Marketing and Communication,
Annie Essienette, clarified that the airline has consistently fulfilled its
obligations and does not face any challenges with its lessors.
“In the course of engaging with some of the lessors, they
have thrown names around. We take leasing contracts very seriously and we don’t
take things for granted.
“Lessors want to do business with us all the time because of
our past record. Even when we disengage with them, we put out a statement to
state that we have disengaged,” Essienette said.
She explained that Nigerian airlines have been experiencing
a decline in their inventory levels over the years. This concerning situation
can be attributed to the unfavorable naira to dollar exchange rate and the
scarcity of foreign currency.
It was mentioned that at one point, there were difficulties
in obtaining foreign currency to procure and import aircraft components from
other countries, as airlines do not manufacture these parts themselves.
Likewise, Max Air, via its legal representatives, stated
that it operates a range of 737 and 747 aircraft, all of which are fully paid
for and owned by the company.
The airline clarified that Its business model does not
involve leasing aircraft for domestic and international operations.
“It is important to reiterate here that our client owns all
her aircraft and do not lease aircraft,” the airline noted.
“To buttress these and contrary to your assertions, our
client does not have any aircraft lease agreement with anyone; and are not
indebted to any anyone for refusing to pay lessor fee. All other assertions
published by you are vehemently denied, as they do not represent the true
ownership status of our client’s aircraft,” it added.
During a recent interview, Festus Keyamo, Minister of
Aviation, highlighted the challenges faced by local operators in the aviation
industry. He emphasized that these operators are at a disadvantage due to
limited access to aircraft on the same terms as international airlines.
“There is no airline in the world that buys their fleet 100
percent. It is not possible. Statistics says that out of a 100 aircraft flying
around the world, about 70 percent of those aircraft are on dry lease from
leasing companies and from aircraft manufacturers. So, why can’t we take
advantage of these lease arrangements to empower our local operators?
“This is the key to also servicing these international
routes because you cannot compete with someone who has access to aircraft on
better terms than you do. The wet lease arrangements are very expensive.”
He said the government is attempting to assist local
operators in obtaining access to these lease agreements, which could result in
a further decline in prices on international routes.
He said, “Nigeria is on the black list to get dry lease
aircraft around the world. This is the diplomatic visit I have been undertaking
since I came.
“I have been trying to assure aircraft manufacturers such as
Airbus and aircraft leasing companies that we can protect their assets if they
bring them into Nigeria because what they want is the assurance from the
government that when these assets are brought into Nigeria, we can allow them
to take their assets away if there are breaches to these agreements.”
He mentioned that the primary challenge faced by lessors in
the past was the difficulty in retrieving their assets from the country in the
event of a breach of contract. Court injunctions and political interference
often hindered the lessors’ ability to reclaim their aircraft, resulting in
substantial financial losses.
“So, what they want is that if they bring their aircraft
into the country on dry lease, they can take them out when there is a breach.
It is the government that will assure these leasing companies and creditors to
bring in their aircraft.”