Eno receives two new aircraft for Ibom Air

Ibom Air, an Akwa Ibom State Government-owned commercial airline has added two new CRJ 900s aircraft to its fleet.

The latest addition increased the number of CRJ 900s to seven and increased the aircraft fleets to nine – two A220 -300s already in its fleets.

The two aircraft touched down at the airline’s hub, Victor Attah International Airport in Uyo at 3 p.m. and 3:23 p.m. and were received by the State Governor, Umo Eno, and a crowd who had thronged the airport for the ceremony which was streamed live on Facebook.

Mr Eno remarked that the new aircraft is fully financed by the state government and further indicated readiness to finance an additional two for the airline.

The penultimate aircraft – Airbus A220 – 300 received in August was jointly financed by two commercial banks, a situation, Mr Eno said he was determined to break free for the airline to begin payment of dividends.

“These aircraft – we’re not borrowing a dime. In fact, I am prepared to finance another two (aircraft for Ibom Air). We are ready to break the cycle of debts to let the airline be free and begin to pay dividends to the government. We must increase our stake and then we must increase our internally generated revenue.

“Ibom Air, while we thank you for the wonderful management, from 2025 we must begin to receive profits from Ibom Air operations so that our investment would be worthwhile.

“I understand the process of building up but as we continue to expand let us stop a little bit and have some dividends. It will make us happy and then we will continue again. That is the way I believe business should be run”.

Ibom Air would be going to capital market

Explaining why the state government funded the acquisition of the two new aircraft for the airline, Mr Eno said the airline would not break even easily if it relied on bank loans.

He said that the airline will be enlisted in the stock market but it must break even before then, the reason he said the state government is investing now to back off later.

“Very soon Ibom Air will be going to the capital market because we want to diversify our shares. It is important that Ibom Air before going to the capital market would break even.

“For me, we felt if Ibom Air continues to rely on bank financing they would not break even in a short while because by the time they take the bank interest at a commercial rate, the banks are free to increase their rate at any time.

“And they give them these loans for seven years. We think we are doing well. Everything Ibom Air does is to pay back that loan and by the time it is seven years the engine of the aircraft is probably due for overhauling. So, they bank loans again and overhaul and come back again, it becomes a vicious cycle and we are determined to break that cycle and that is what we have done by the acquisition of these two aircraft without any bank finance.”

The governor appealed to the airline to increase flights to its operational hub -Uyo, particularly as Christmas approaches.

Aircraft meant to connect regional network – CEO

Speaking earlier, the airline’s Managing Director and Chief Executive Officer, Mfon Udom said the new addition has increased its capacity in readiness for Christmas.

Mr Udom said the two aircraft are only being warmed up in domestic space but are actually meant to connect regional networks to Uyo – the airline’s operational hub.

He also mentioned that the new International Terminal at the airport will be opened for business in December for limited flight operations.

“The full purpose of the new terminal will be fully realised in the first quarter of 2025 when we start regional flights out of Uyo.

“The (Airbus) A220s would be parked there, the CRJs bring our passengers from Abuja, Duala – everywhere to connect in Uyo to their final destinations. It is going to be a very busy terminal as we go along,” Mr Udom said.

Background

Ibom Air, which launched its maiden flight in June 2019, taking off from the Victor Attah International Airport in Uyo, is rated as one of the most successful airlines in Nigeria.

The airline has over the years garnered several awards including Nigeria’s best airline of the year for four consecutive years spanning 2020 to 2023.

Ibom Air last year secured a safety certification from the International Air Transport Association (IATA).

As part of its expansion drive, the airline, last October, launched its first African-sub regional flight, touching down in the West African country, Ghana.

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The state government, as part of its efforts to ensure the smooth take-off of the airline’s international flights last year commissioned an International Terminal, Maintenance, Repairs, and Overhaul (MRO) facility, a new taxiway, and an apron to cater the anticipated influx of people at the airline hub.

Governor Eno while receiving the two new CRJ 900s said the state government will start earning foreign currencies when the MRO becomes operational next year.