Over the past five years, Nigeria’s aviation sector has experienced a remarkable surge in state-led initiatives, driven by a growing ambition among subnational governments to establish their own airlines.
This strategic move reflects a concerted effort to bolster local economies, enhance regional connectivity, and reduce reliance on federal infrastructure.
By investing in aviation, state governments aim to unlock economic opportunities, facilitate tourism, and improve access to major commercial hubs, thereby fostering development at both state and national levels.
Three State Airlines In The Past Few Years: Operations And Performance
Ibom Air (Akwa Ibom State, Debut: 2019)
Launched on June 7, 2019, Ibom Air, wholly owned by the Akwa Ibom State Government, was Nigeria’s first state-owned airline.
Operating from Victor Attah International Airport in Uyo, it started with a fleet of five Bombardier CRJ900 aircraft and has since expanded to include two Airbus A220-300s, with plans to acquire more.
Ibom Air serves seven domestic destinations, including Lagos, Abuja, Enugu, and Calabar, and has ventured into regional routes, such as Accra, Ghana.
Its business model emphasizes punctuality, safety, and customer service, earning it accolades like the Best Airline in Nigeria for three consecutive years (2020–2022) and an IATA Operational Safety Audit Certificate in 2023.
Financially, Ibom Air has shown resilience. In 2024, it reported a 43% revenue growth, from N67 billion in 2023 to N96 billion, with a net profit of N6.8 billion, recovering from an N8.7 billion loss in 2023 due to naira devaluation.
Its on-time performance is unmatched, with 706 of 708 scheduled flights in July 2022 departing on schedule. However, challenges like foreign exchange scarcity for aircraft maintenance and high operational costs persist.
Ibom Air’s codeshare agreement with Dana Air in 2021, the first of its kind in Nigeria, enhanced its market reach but ended when Dana Air ceased operations.
Cally Air (Cross River State, Debut: 2021)
Cross River State launched Cally Air in 2021, aiming to enhance tourism and connectivity in the state, known for attractions like the Obudu Cattle Ranch.
Operating with a single Boeing 737-300, Cally Air connects Calabar to Lagos and Abuja, with occasional flights to other cities. Managed in partnership with Aero Contractors, the airline focuses on affordability and reliability but has faced operational constraints due to its limited fleet.
Cally Air’s performance has been modest. It lacks the financial transparency of Ibom Air, and its market share remains small. Passenger feedback highlights inconsistent schedules and limited route options, partly due to reliance on a single aircraft.
While it has maintained operations without major disruptions, its growth has been stymied by funding challenges and competition from larger airlines like Air Peace and Ibom Air.
The state government has not publicly disclosed plans for fleet expansion, raising questions about long-term viability.
Enugu Air (Enugu State, Debut: 2025)
Enugu Air, the newest state-owned airline, commenced commercial operations on July 7, 2025, under the Enugu State Government’s ownership.
Operated by XEJet, a private aviation company, it uses three Embraer aircraft (E-170 and E-190) to connect Enugu with Lagos, Abuja, Port Harcourt, and Kano.
The airline aims to position Enugu as a strategic aviation hub in southeastern Nigeria, with plans to expand its fleet to six aircraft by the end of 2025 and explore regional routes in West and Central Africa.
As of July 2025, Enugu Air’s performance is too early to fully assess, but initial reports are promising. Its first flight from Lagos to Akanu Ibiam International Airport was well-received, and the state government has secured office spaces at seven major Nigerian airports.
However, delays in its launch initially planned for May 2025 sparked concerns about project management. The airline’s reliance on XEJet’s Air Operator Certificate and crew has also raised questions about its operational independence.
Impact On State And Country
The emergence of Ibom Air, Cally Air, and Enugu Air has had a transformative effect on Nigeria’s aviation landscape. At the state level, these airlines have created thousands of jobs, from pilots and cabin crew to ground staff and engineers, boosting local economies.
For instance, Ibom Air employs 656 staff, while Enugu Air is expected to generate significant employment in the southeast.
These airlines have also enhanced tourism and business travel, with Ibom Air’s reliable service drawing passengers to Akwa Ibom’s hospitality sector and Cally Air promoting Cross River’s tourism assets.
Economically and financially, these airlines stimulate state revenue through increased economic activity, including higher airport traffic, local business patronage, and tax contributions from tourism and related sectors.
The development of cargo terminals, as with Enugu’s airport concessioning, enables direct exports, attracting investment and reducing reliance on distant hubs, further strengthening state economies.
Enugu Air’s launch aligns with Enugu’s ambition to host major events, such as the Nigerian Bar Association’s 2025 conference, attracting over 15,000 visitors.
Nationally, these airlines have intensified competition in the domestic market, challenging private carriers like Air Peace and United Nigeria Airlines.
This has led to improved service quality and more competitive fares, benefiting passengers. The airlines have also increased passenger traffic at regional airports, with Akanu Ibiam International Airport in Enugu and Victor Attah International Airport in Uyo seeing higher activity.
By fostering connectivity, they support Nigeria’s economic diversification beyond oil, aligning with federal policies to grow local operators.
However, their reliance on state funding raises concerns about fiscal sustainability, especially in states with limited budgets.
Sustainability: Are They Still Doing Well Or Falling Out?
Ibom Air stands out as a success story, maintaining profitability and expanding its fleet despite economic challenges. Its strong corporate governance, highlighted during its first public Annual General Meeting in 2024, sets a benchmark for state-owned enterprises in Nigeria.
Cally Air, however, struggles with growth, limited by its single aircraft and lack of clear expansion plans. While it has not collapsed, its future depends on increased investment and strategic partnerships.
Enugu Air, still in its infancy, shows potential but faces risks from operational delays and dependence on XEJet. None of the airlines have folded, but only Ibom Air demonstrates robust sustainability.
What It Means To Manage An Airline
Managing a state-owned airline in Nigeria is a high-stakes endeavor fraught with challenges. It requires balancing commercial viability with public expectations, navigating a regulatory landscape overseen by the Nigerian Civil Aviation Authority (NCAA), and securing consistent funding in a dollar-dependent industry. Effective management demands;
Financial Prudence: Ibom Air’s success stems from owning its fleet and avoiding leasing defaults, unlike many Nigerian carriers. Enugu Air’s reliance on Fidelity Bank financing and Cally Air’s leased aircraft highlight the need for sustainable funding models.
Operational Autonomy: Partnerships with private operators like XEJet (Enugu Air) or Aero Contractors (Cally Air) can streamline operations but risk ceding control, as seen in Cally Air’s struggles.
Regulatory Compliance: Obtaining and maintaining an AOC, as Enugu Air is still pursuing, involves rigorous safety and financial audits. The NCAA’s 2024 audit revealed most Nigerian airlines are financially unstable, underscoring the need for robust governance.
Market Competitiveness: High fares, fleet scarcity, and poor communication alienate passengers, as seen in criticisms of all three airlines.
Managers must invest in modern aircraft, competitive pricing, and customer service to survive.
Avoiding Bureaucracy: Keyamo’s warning to Enugu Air about Nigeria Airways’ collapse highlights the danger of political interference and mismanagement, a lesson Cally Air may already be grappling with.
The history of Nigerian aviation, littered with failed carriers like Nigeria Airways and Azman Air (suspended in 2024), shows that airlines require long-term vision, not short-term political gains. Ibom Air’s disciplined approach contrasts with Cally Air’s opacity and Enugu Air’s early uncertainties, illustrating the fine line between success and failure.
Ibom Air, Cally Air, and Enugu Air represent Nigeria’s evolving experiment with state-owned airlines, each with distinct trajectories.
Ibom Air’s success offers a blueprint for operational excellence, while Cally Air’s struggles and Enugu Air’s nascent challenges underscore the risks of mismanagement and over-reliance on private partners.
Their collective impact job creation, connectivity, and economic potential is tempered by financial strain and market volatility.
Managing these airlines demands financial acumen, regulatory compliance, and a commitment to passenger needs in a sector where failure is all too common.
As Enugu Air takes flight, its ability to learn from Ibom Air’s triumphs and Cally Air’s pitfalls will determine whether it soars or stumbles in Nigeria’s turbulent skies.
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