Yemisi Izuora With Agency Report
The problems in Nigeria’s commercial airline sector is creating huge opportunities for the business aviation community.
While carriers across Africa are suffering from a strong dollar-weak local currency squeeze, nowhere is this being felt more than in Nigeria.
Nigeria’s biggest commercial airline, Arik Air, suspended flights to London and Johannesburg in February and is set for further downsizing of its operations.
After a contraction in activity two years ago due to Nigeria’s economic downturn, business aviation has been quick to seize its chance, albeit one that took some time to present itself.
Achuzie Ezenagu, CEO of Nigeria’s Toucan Aviation, told AIN, “The initial knee-jerk reaction was for top clients to seek ways out of contractual obligations with business aviation in favor of the commercial airliners. Unfortunately, the commercial airliners have had their fair share of woes too. As such, we are seeing our core clients look back to us for the all-important service that we provide—business aviation.”
“The economy seems to be picking up as diversification is now the name of the game,” said Ezenagu, adding that he sees brighter prospects for 2017. “The Naira is strengthening and businesses seem to have adapted to the new economic environment. I anticipate that this year will end on a high, as new regulations are implemented in our monetary policies and unnecessary restrictions are removed.”
Toucan carried out a strategic realignment of its business model recently. “Following the dip in the value of the Naira, U.S. dollars became very scarce in our operating environment. This had a knock-on effect on our customers, including international oil companies,” he said.
“In response to the inability of our customers to meet the high cost of our 13-seat Legacy 600 for an average of six people per flight, we invested in the EMB145 49-seaters. These planes have been ordered in our colors and are fully refitted. We will commence a daily operation to Port Harcourt and Abuja in April 2017. He said major client Total Exploration and Production had audited Toucan’s operations in both Nigeria and Europe and had expressed no objections to its “excellent safety procedures.”
“The benefits of our new service are that we are able to provide exclusive boarding at VIP terminals, which gives our clients the privacy and efficiency they desire, while being able to transport a larger volume of passengers at a more affordable cost.”
Another relatively new Nigerian player, Izy Aviation, was incorporated in 2011. It carries out worldwide charter services on a Challenger 601 and a Hawker 800XP, and performs maintenance.
“When we started, our focus was on aircraft management, and we had up to five jets under management at the time,” said Alex Izinyon II, president, Abuja-based Izy Air Ltd., who attended Aviation Africa 2017 in Kigali In February. “We catered to high-net-worth individuals, oil and gas companies, diplomats, government officials and other corporate bodies.”
As the market changed, the requirements for certain clients shifted away from wanting their own aircraft, to a preference for charter contracts without the responsibility of the asset. “We thereafter commenced the process to obtain our AOC, [which was awarded] in December 2015, said Izinyon. “We also partnered with an EASA- and FAA-approved MRO to support our aircraft and clients with line maintenance in Nigeria. Through these, we now carry out worldwide charters, aircraft sales, management and maintenance,” he said.