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.”