13 Nigerian Airlines Face Blacklisting Due to Contract Violations

The Nigerian aviation sector is facing difficulties as 13 local airlines have been blacklisted by international aircraft leasing companies. This is due to the airlines not paying their fees and getting involved in legal disputes with leasing companies such as Planesense and AerCap.

The airlines affected include Aero and Air Peace, Arik, Azman, Dana, Green Africa, Ibom Air, Max Air, NG Eagle, Overland, Reno Air, United Nigeria Airline and Value Jet. These companies have failed to keep up with their lease payments.

In some cases, they have also taken legal actions against the leasing companies and refused to return aircraft when asked, after breaking their payment agreements.

Diplomatic Efforts

Festus Keyamo, the Minister of Aviation, mentioned that local operators are disadvantaged because they cannot access the same leasing options as international airlines. He said, “Nigeria is blacklisted from obtaining dry lease aircraft globally.

This issue has been a key part of the diplomatic talks I have been involved in since taking office. We are trying to convince aircraft manufacturers and leasing companies that we can protect their assets if they bring them to Nigeria, stressing the government’s commitment to uphold agreements and manage any issues responsibly.”

Because of the blacklist, Nigerian airlines cannot get good lease deals where they can operate and maintain aircraft by themselves. They are often stuck with less profitable wet lease deals, where the leasing company provides the aircraft, crew, and maintenance.

This blacklisting has caused a shortage of aircraft available for flights, especially when maintenance costs are high because of foreign exchange rates.

The Nigerian Civil Aviation Authority has had to ground some aircraft that were not maintained properly.

The shortage of aircraft has made ticket prices go up, especially on busy routes like from Lagos to Abuja. This has led to increased illegal ticket sales at high prices.