Lagos to Launch New Airline to Compete With Air Peace, Arik Air, Others

Lagos to Launch New Airline to Compete With Air Peace, Arik Air, Others

  • The governor of Lagos state has said it is planning a commercial airline in the country
  • He said that the discussion is already in its final stage of determining the financing model
  • Stakeholders see the development as a good one that will strengthen competition in the industry

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Lagos state governor, Babajide Sanwo-Olu has said the state plans to establish a commercial airline in the country.

New foreign airline begins daily flights in Nigeria, promises greater availability

Good news as Lagos Set to launch airline to compete Air Peace, Arik Air, Others
Sanwo-Olu said Lagos would soon commence the construction of a new airport in Lekki. Photo Credit: Lagos State, Aaron Foster
Source: Getty Images

He said this during the comprehensive presentation of the administration's achievements in Lagos at the Lagos West Senatorial District People's Town Hall Meeting.

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He also said the government would soon commence the construction of a new airport in Lekki.

Earlier, Legit.ng reported that the Lagos State Government promised to construct a new international Airport at the Lekki Epe corridor of the state in the next year or two.

Discussion in the final stage

According to Sanwo-Olu in a report by The Punch, having a state-owned airport has been deliberated for several months.

He revealed that the discussion has already reached the final stage of determining the financing model for the project.

He noted that the next crucial step requires securing the federal government's approval and establishing operational contingencies for the proposed commercial airline.

The governor said:

“Over the last five months, the Deputy Governor and I have been working to put a concise plan together for the establishment of an airline, but we did not make the plan open because of the need to get adequate knowledge about the operational procedures of airlines.

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Sanwo-Olu guaranteed that there would be no problems with funding and that the business strategy would work.

He added that even if the discussion has progressed to a more advanced level, the strategy needs to be implemented first, and accurate operational information must be obtained.

Commenting on this, stakeholders in the industry expressed delight in the development.

According to Kingsley Nwokoma, Chairman of the Association of Foreign Airlines and Representatives in Nigeria, the move is advantageous for the sector.

He said:

“The aviation sector benefits from increased players, addressing recurring issues like low service quality, delayed flights, and cancellations. These challenges of flight delays and cancellations are key concerns for the Minister of Aviation.

Regarding the development as a welcomed one, he said that more standardised airlines are needed in the country, potentially reaching the IATA clearing house.

According to Olumide Ohunayo, General Secretary of the Aviation Safety Round Table Initiative, additional airlines are needed to overcome the existing demand-supply mismatch in the aviation business.

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He said:

"The industry is not unsaturated. We need more. We saw what happened last Christmas when tickets hit the roof of about 250,000 naira. So we had less supply. We would not have gotten to that fair price if the demand had outpaced supply.
“I would advise that they shouldn’t make it a civil service airline but they should look at the Ibom structure whereby it is managed by professionals. That is the route to take.”

New foreign airline begins daily flights in Nigeria

Legit.ng reported that TAAG Angola Airlines revealed that flight schedules between the Murtala Mohammed International Airport, Lagos, and Luanda Quatro de Fevereiro Airport, Angola, will go daily starting January 8, 2024.

The company wants greater availability and mobility options for its passengers and customers.

According to a statement by the airline, Nigeria is one of Africa's largest economies, and Lagos is one of its main regional destinations, with growing market demands, especially corporate passengers.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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