How to run successful airline business in Nigeria – MD Afri-Air | Airlines

Shehu Iyal is the managing director, Afri-Air International Limited. He was also the Senior Special Assistant to the Presidency on the Presidential Fleet. In this interview with IFEOMA OKEKE-KORIEOCHA, he speaks on how demand, fuel cost and cost of aircrafy determines airfares. He also hints on what airlines and government can do to for the aviation sector to thrive.

What can you say about the scheduled commercial airline industry in Nigeria?

There is a great leap and great fulfilment in airline business in Nigeria; notwithstanding the circumstances and situation they found themselves. And you can see the number of airlines we have today, and you can see the facilities at the airports from what we had 10 years ago. You can also see the new planes that are coming in. The aircraft are quite modern, cost effective and very safe to use.

Airline operators have always complained of high cost of operation in Nigeria; can you say the current fares charged by the airlines are commensurable with the cost of operations?

You have to be fair to the airlines. What about the cost of aviation fuel, which you know is a major factor? What about the cost of acquisition of these aircraft, which you know is very high and you pay heavily for aircraft leasing and insurance. If you are in Nigeria, you know what we go through. But overall, I think the fares should be looked into and stabilised for better conditions both for the passengers and the airlines.

But for now, I think the demand side is higher than the supply side. And sometimes, it determines the price. Most airlines in the world don’t acquire aircraft directly; they lease.

It has been agreed that Nigerian airlines pay more for insurance and aircraft leasing. Is there any advice you can give the government and the operators to bring down the high insurance to be comparable to what is obtained within the continent?

Yes there is. There is a need for the government to come in either with funding or to create some kind…

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