The Chief Executive Officer, Jet Afrique, Theodore Chikelu, in this interview with OLUSEGUN KOIKI, speaks on the major challenges facing Nigerian airlines, the deployment of wrong equipment, controversial levies and charges, as well as fiscal support for the airlines.

What are the major challenges responsible for the early collapse of many Nigerian airlines?
The challenges vary from one airline to another because every airline has its own operational structure and management philosophy. However, the biggest factors are poor management, inadequate knowledge of airline operations, weak revenue management and poor financial discipline.

Another major issue is aircraft deployment. Every aircraft is designed for a specific purpose. When an aircraft built for medium or long-haul operations is repeatedly deployed on very short routes, it incurs what we call cycle penalties, which significantly increase maintenance costs.

Fuel is another challenge. Aviation fuel prices are tied to the exchange rate, making costs highly volatile. Airlines must therefore accurately calculate their operating costs, deploy the right aircraft on the right routes and carefully study passenger demand before launching services.

We have seen situations where airlines operated international routes with only a handful of passengers. Such decisions are simply not commercially sustainable.

Cash management is equally important. Airlines collect statutory charges on behalf of agencies such as the Nigeria Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA). Ideally, these funds should be remitted promptly. Delays in remittance often lead to regulatory sanctions, which can ground operations.

An aircraft is designed to fly, not remain parked. Every day an aircraft sits idle, it continues to accumulate costs without generating revenue.

Ultimately, successful airline management requires constant attention to daily operations, costs and strategic planning. Airlines that have survived over the years have generally demonstrated stronger management discipline and operational efficiency.

What is your position on calls by airlines for a reduction in taxes and charges?
The issue should be viewed objectively. From an airline operator’s perspective, every additional charge increases operating costs. However, regulators also have financial obligations and operational responsibilities that must be funded. Rather than blaming one another, stakeholders should engage in constructive discussions to determine charges that are fair and sustainable.

Years ago, an economy ticket between Lagos and Abuja cost about N2,000, while business class sold for around N5,000. Today’s fares are significantly higher because operating costs have risen across the board.

Regulatory agencies such as the NCAA rely largely on revenues generated from the industry to fund their operations. We may not fully appreciate their financial commitments. The solution lies in dialogue, not confrontation. Airlines and regulators should work together to establish charges that support both industry growth and regulatory effectiveness.

Are government interventions making any meaningful difference?
Yes, but the real issue is how operators respond to those interventions. The Federal Government, through the Minister of Aviation and Aerospace Development, Festus Keyamo, has introduced initiatives such as domestic aircraft leasing arrangements. Airlines should take advantage of these opportunities responsibly.

However, operators must also meet their financial obligations. Government support should not become an excuse for poor financial discipline or failure to pay statutory fees. The government has also simplified leasing procedures, including wet, dry and damp lease arrangements. These are positive developments that should make aircraft acquisition easier.

Nevertheless, aircraft are purchased or leased in dollars, and exchange rate volatility continues to put pressure on operators. A stronger economy and improved foreign exchange stability would help reduce some of these challenges.

Are Nigerian airlines now deploying the right aircraft on the right routes?
There has been noticeable improvement. In the past, some airlines deployed wide-body aircraft on short domestic routes, which was economically inefficient and increased maintenance costs through cycle penalties.

Today, more operators are introducing smaller aircraft, including 35 and 50-seat turboprops, which are better suited for passenger demand on many domestic routes.

The market should determine aircraft size. It makes little business sense to operate a 100-seat aircraft on a route that consistently attracts only 50 passengers. Empty seats represent lost revenue. Fleet planning should always be guided by demand, operating costs and competition.

Do you support the outright purchase of aircraft by Nigerian airlines?
Generally, no. Leasing is a more practical and financially sustainable option for most airlines.

Technology evolves rapidly. An aircraft purchased outright today may become commercially obsolete within a few years. Leasing allows operators to upgrade their fleets more easily while reducing financial exposure.

Fleet expansion should be based on demand analysis. For example, if a 50-seat aircraft consistently records high load factors, an airline may then consider introducing a larger aircraft. Every expansion decision should be backed by sound revenue management, realistic load factor projections and comprehensive business planning.

No responsible business plan assumes every flight will operate at 100 per cent capacity from day one.

Airlines must know their break even point and plan growth accordingly.

What informed the decision to organise the AeroWest Conference?
AeroWest is being organised by Jet Afrique Aviation Services in partnership with the West African Tourism Organisation (WATO) and other stakeholders. The objective is to address the long-standing structural challenges affecting aviation across West and Central Africa.

For decades, airlines have emerged only to shut down after a few years. We must understand why this cycle continues. Across airports in the region, numerous aircraft remain abandoned because of financial, operational or regulatory challenges. This represents a huge waste of investment.

The conference will also examine issues such as poor regional connectivity, weak cargo development, high insurance costs, limited low-cost airline operations and the need for stronger collaboration between aviation and tourism.

Our goal is not merely to identify problems, but to propose practical and implementable solutions that improve efficiency and sustainability across the sector.

What impact do you expect the conference to have?
The conference is built around the theme: ‘A Responsible and Sustainable Approach to Improving West and Central African Aviation.’ Government has introduced several reforms to improve the operating environment. The next step is ensuring that both existing and prospective operators understand how to maximise these opportunities.

Another key objective is strengthening the relationship between aviation and tourism. The two sectors are closely linked, and improved tourism will generate more passenger traffic and stimulate airline growth.

The event will bring together airlines, tour operators, aircraft leasing companies, MRO providers and other aviation stakeholders from across Africa and beyond.

We aim to build stronger collaboration, promote knowledge sharing and encourage practical solutions that will drive sustainable aviation development in West and Central Africa.