Governor Babajide Sanwo-Olu of Lagos State has announced plans for the establishment of a state-owned commercial airline and the construction of a new airport in Lekki.
The governor made this revelation during the presentation of the administration’s achievements at the Lagos West Senatorial District People’s Town Hall Meeting on Thursday.
According to him, the idea of a state-owned airport has been under consideration for several months, and the state government is now in the final stages of determining the financing model for this ambitious project. Sanwo-Olu acknowledged that the next crucial steps involve securing Federal Government approval and establishing operational contingencies for the proposed commercial airline.
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“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,” Governor Sanwo-Olu remarked. “The business plan is viable, and there is no issue about financing. The conversation has gone to an advanced stage, but we need to get the proper information on operations before we go ahead to implement the plan.”
The governor promised that the senatorial district would benefit significantly from the intracity railway development projects, with major passenger hubs of Blue Line and Red Line trains located in Lagos West.
Stakeholders applaud the move
Stakeholders within the aviation industry, who spoke to The Punch, have expressed optimism about the Lagos State government’s plans. Kingsley Nwokoma, Chairman of the Association of Foreign Airlines and Representatives in Nigeria, sees this development as positive for the industry.
“The aviation sector benefits from increased players, addressing recurring issues like low service quality, delayed flights, and cancellations,” he said.
Nwokoma further noted that having more airlines would be advantageous, addressing concerns such as flight delays and cancellations, which have been key issues for the Minister of Aviation.
“In the past, we had only a few airlines, but the current expansion is a welcomed and beneficial development for the sector. Nigeria requires more standardized airlines, potentially reaching the IATA clearing house,” he added.
The General Secretary of the Aviation Safety Round Table Initiative, Olumide Ohunayo, supported the need for more airlines to address the current demand-supply imbalance in the industry. He pointed to recent incidents of exorbitant Christmas ticket prices reaching N250,000 due to high demand, underscoring the necessity for growth.
However, Ohunayo advised the Lagos State Government to draw inspiration from the success of Ibom Air in Akwa Ibom, suggesting a state-dependent, professionally managed structure similar to Ibom.
The aviation expert noted the need for more players in the industry, citing Ibom Air as an example that a state could run an airline successfully.
“The industry is not unsaturated. We need more. We saw what happened during the 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,” he said. “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.”
Lagos State’s Aviation Aspirations: A Historical Perspective
Nigeria’s aviation history is marked by several failed attempts by both the government and private entities to establish sustainable airlines. In 2017, Imo State became the first Nigerian state to have its own airline, aiming to operate regular scheduled flights to major cities across the country. Unfortunately, this venture, like many before it, turned into another unfortunate investment story.
Thus, Lagos State’s attempt to establish its airline is, however, met with skepticism in many quarters, given the historical challenges faced by previous national carriers in Nigeria. From the defunct Nigerian Airways of 1958 to ventures like Virgin Atlantic and the ill-fated Nigeria Air in 2023, these endeavors have sent a message of the state’s inability to successfully operate a national carrier.
Amidst the excitement and optimism, voices of concern and skepticism regarding Lagos State’s foray into the aviation industry persist. Some critics view this move as a potential waste of taxpayers’ money, questioning the state government’s ability to run a successful airline. Despite the success of Ibom Air, founded by Akwa Ibom state in 2019, as a potential benchmark, doubts remain about the viability of Lagos State’s venture.
Critics argue that Lagos should prioritize providing diverse means of transportation, expanding initiatives like the rail line launched last year to ease traffic congestion—a significant impediment to the state’s economic development.
While the aviation industry may benefit from increased players, some believe that the state’s resources could be better allocated to address pressing issues such as infrastructure road, and rail transportation that have remained a clog in the economic development of the state.