Akwa Ibom’s Ibom Air looks to capital market for profit in 2025

Ben Eguzozie

Ibom Air, the nation’s first state-run air carrier, with perhaps a trailblazing feat in Nigeria’s aviation sector, is making a strategic investment expansion, as it looks to the capital market for break-even leading up to profit.

Although the airline company has added two new Bombardier CRJ 900 5N-CED and 5N-CEE (next generation aircraft) to its fleet this November, the carrier is yet to break even let alone make profit. Recently, Governor Umo Eno of the owner state government, Akwa Ibom doled out N9 billion to the airline to aid its operational exigencies, including aircraft acquisition.

At the unveiling of the new aircraft, Governor Eno motioned to the airline’s management to prepare to move to the capital market by 2025 in order to obtain needed credits which will enable it to reshape for profit.

However, aviation sector watchers believe the state-owned carrier was making significant future-proof investments that are reshaping Nigeria’s aviation landscape.  Some aviation experts add that though the airline’s fleet expansion indicated a commitment to efficiency and growth, its sustainability would depend on divesting government interests. Hence, they call for an early approach to the capital market — perhaps launch an IPO to expand the airline’s capital base and shareholding.

Till date, the carrier’s total fleet number stands at nine aircraft: seven CRJ 900s and two Airbus A220-300s. There are plans to acquire nine additional Airbus A220-300s over the next three years.

Mfon Udom, Ibom Air’s chief executive, says the carrier has a goal to become a desired scheduled carrier with continuous fleet growth. “We eagerly await the deliveries of our nine remaining Airbus A220-300s over the next three years.”

Launched in 2019, Ibom Air has grown from an initial fleet of three CRJ 900 aircraft to its current nine-aircraft fleet, with plans for further expansion. It achieved 83 percent schedule reliability and 80 percent on-time performance in 2023. It also received the best airline award for three consecutive years 2020-2022. It obtained safety certification from the International Air Transport Association (IATA). The state government is currently building a Maintenance, Repair and Overhaul (MRO) to beef up the multipurpose airport terminal. Another facility in the pipeline is an Aviation Village near the airport, which will provide housing and amenities for air workers to support a 24-hour airport service.

But, watchers in the aviation sector strongly advise the state government to quickly prepare the carrier for the capital market, in order to realise and sustain the incoming facilities.