Enugu Air, Expanding Domestic frontline

By Charles Ayodele

The launch of Enugu Air on July 7, 2025 by the Enugu State Government has further swelled the number of scheduled indigenous airlines in Nigeria. Unlike the other existing 12 scheduled operators with their own Air Operator’s Certificate (AOC), Enugu Air would in the interim operate with the AOC of XEJet Airlines and operate flight services between Lagos, Abuja and Enugu airports.

The model adopted by the Enugu State Government is not novel in the global and Nigerian aviation industry.
The Imo State Government in January 2017, had partnered with Dana Air to launch Imo Air with the aim of improving the Gross Domestic Product (GDP) of the state.

The contract with the State Government was to last for 10 years, but since the exit of Mr. Rochas Okorocha as the State Governor in the state, the contract was discontinued by his successor in office.

Also, in 2022, the Cross River State Government partnered with Aero Contractors to launch Cally Air.
This partnership involved Aero Contractors managing the airline’s operations, including flying routes to and from Abuja and Lagos, using the state’s two Boeing 737 aircraft. The State Government said the partnership aimed to improve air travel connectivity and affordability to travelers to and from Calabar and other routes it operates to.

Speaking at the launch of the new airline in Enugu, Mr. Peter Mbah, the Enugu State Governor, said that the newly launched state-owned airline would serve as a strategic hub to connect countries beyond its base in the state capital.
Mbah emphasized that Enugu Air was not just a domestic airline, but part of a broader vision to position Enugu as a central aviation gateway to the South-East and a bridge between Nigeria and the rest of the world.

Mbah said Enugu Air was part of a broader state-driven transport strategy aimed at positioning the state as a regional aviation hub, starting with three Embraer aircraft on the Enugu–Abuja–Lagos “golden triangle.”
The governor said that the carrier intended to spur job creation, boost tourism, and improve connectivity for the diaspora and business community.

He added that it would offer “simpler, more dignified access to home” and become “a giant leap for Enugu State; a gold standard for government and private partnership.”

He said: “Our goal is to make Enugu a connecting hub for travelers across Africa and internationally. Enugu Air will not only facilitate domestic travel but also serve as a critical link that connects countries to our base here in Enugu, boosting tourism, trade, and economic growth.”

Also, Mr. Festus Keyamo, the Minister of Aviation and Aerospace Development, lauded the initiative as a trailblazing move that reflected the power of sub-national vision. Keyamo commended the Enugu State Government for investing in critical infrastructure that promotes economic integration and positions Nigeria as an emerging aviation hub.

He said: “This launch is more than symbolic. It shows how a state government can lead with vision and build the kind of infrastructure that connects Nigeria internally and externally.” Besides, Keyamo commended the state’s choice of XEJet as partner and operator of Enugu Air, describing XEJet as a highly competent and 100 per cent Nigeria-owned key player in the country and Africa’s aviation industry.

“XEJet is not only supporting Enugu Air, it is running the Sierra Leonean national airline. That is what the Renewed Hope Agenda is all about,” he stated.

Airlines, Collaborating with State Governments
Experts in the Nigerian aviation industry, however, said that the recent involvement of State governments in the airline sub-sector was prompted by airline operators.

Nigeria had in 2024, signed the Practice Directions of the Cape Town Conventions (CTC) in September 2024, which would ease aircraft acquisition and dry lease option for the operators, but this had not yielded the expected results.
Experts also said that some of the operators who are keen to lease aircraft on dry lease option, approached willing State governments and investors in the country to invest in the acquisition of aircraft for easy lease.

Capt. Ado Sanusi, the Chief Executive Officer (CEO), Aero Contractors, in an interview with Transportation Agenda, said that some of the airlines are in talks with State governments for aircraft acquisition to beef up their fleets.
For instance, Sanusi said that Aero Contractors was in talks with the Cross River State Government to acquire additional operating aircraft.

Already, he said the state had two Boeing 737 aircraft, which are operated by Aero Contractors with plans to purchase more.

He said: “Aero Contractors will like to do dry lease, but a lot of things are slowing us down. But, as an airline, we are talking with some investors and State governments on the possibility of acquiring aircraft for Aero.
“For instance, the Cross River State Government is one of the states that we are in talks with. We are also talking with some private investors on the possibility of acquiring aircraft for operators.

While Sanusi lauded Keyamo for ensuring CTC compliance for Nigeria, he however, said that myriads of challenges still stall the full implementation.

He mentioned legal and judicial bottlenecks, insurance market constraints, residual risk perception and global aircraft shortage as some of the obstacles confronting the success of dry lease for Nigerian operators.
He said: “The current guidelines do not clearly define aircraft asset categories or timelines for enforcement. This opens the door to inconsistent judicial rulings and legal maneuvering through injunctions, ex parte orders and prolonged court appeals.

“Also, many judges lack the necessary training to handle complex international aviation finance cases. As a result, enforcement can be delayed or inconsistent—leading to a perception of legal risk among global lessors.
“On insurance, there is limited underwriting capacity by the domestic insurers. They do not have the financial muscle to cover multi-million-dollar dry lease risks. International lessors often insist on offshore coverage, creating tension with local insurance regulations.”

Also, Dr. Alex Nwuba, Vice President, Aviation Safety Round Table Initiative (ASRTI), said that the biggest obstacle to acquisition of aircraft on dry lease by Nigerian airlines was lack of trust by the lessors.

Nwuba also said that the Nigerian carriers lacked the capacity to comply with the lease payments as at when due.
According to him, at present, only two groups of the operators enjoy leases – State governments with their state-owned airlines and operators that could obtain bank guarantees. “So, future payments may appear unreliable,” he added.