The Managing Director of Ibom Air, George Uriesi, in this interview with OLUSEGUN KOIKI, speaks on the challenges confronting domestic airlines, the carrier’s new Uyo-Accra service, plans to develop Uyo into a regional hub and why the airline is focusing on Africa rather than intercontinental expansion.

What are the major challenges confronting airline operations in Nigeria, particularly regarding aircraft financing and Jet A1 fuel?

I must commend the Minister of Aviation and Aerospace Development, Festus Keyamo. He is one of the few ministers who listen to operators’ concerns and address them with determination.

One major achievement is Nigeria’s improved compliance with the Cape Town Convention, which has removed some of the barriers to aircraft acquisition. Aircraft are the most expensive assets for any airline, and improved access to international financiers and lessors at lower interest rates is critical.

At Ibom Air, our business is fundamentally strong. In 2025, we recorded an earnings before interest, taxes, depreciation and amortisation (EBITDA) margin of about 35 per cent, which compares favourably with many international airlines. The problem is that a significant portion of our earnings goes into servicing high-interest loans.

If we could access financing at single-digit interest rates instead of the high double-digit rates we currently pay, our profitability would improve significantly.

Fuel is another major challenge. The cost of Jet A1 completely disrupted our business model. Fuel cost for a single Abuja flight rose from less than N2 million to almost N8 million. Meanwhile, airlines cannot increase ticket fares by 300 per cent because passengers simply cannot bear such increases. At best, fares can only rise by about 20 to 25 per cent.

We also need to address insurance costs. Nigerian airlines pay three to four times more than their counterparts in Europe despite complying with the same international safety and regulatory standards. Why should we be classified as high-risk operators? Until these structural issues are addressed, Nigerian airlines would continue to face an uneven playing field.

How do these challenges affect your international expansion plans?

They influence our strategy significantly. That is why Ibom Air is concentrating on Africa for now. We are not looking beyond the continent until we have built a stronger and more competitive airline.

Competing on European routes would pit us against established carriers with much lower operating costs, cheaper financing and higher economies of scale. They can reduce fares to levels Nigerian airlines simply cannot sustain. We would rather build strength within Africa before considering long-haul operations.

Why did Ibom Air choose to launch the Uyo-Accra route instead of operating from Lagos?

The Uyo-Accra service is a pilot project designed to test our hub strategy. We already have an operational station in Accra, so introducing the route required minimal additional investment. More importantly, it allows us to test passenger connectivity through Uyo.

On the inaugural flight, we had passengers connecting from Abuja, while others connected from Lagos. Similarly, passengers arriving from Accra connected onward to Abuja. The idea is to give travellers a seamless transfer experience and demonstrate that travelling through Uyo is simple and stress-free.

The terminal itself is world-class. We want passengers to experience its efficiency and convenience, and encourage others to use it. This service is also preparing us for additional regional routes we intend to launch later this year.

So, the Accra operation is more of a strategic test than a commercial expansion?

Exactly, it is an experiment designed to validate the hub concept. If passenger traffic grows as expected, it will become an established route. Even if it does not, we would still have tested our systems, processes and airport infrastructure ahead of our planned expansion into Central Africa and other regional destinations beginning around August or September.

This gives us practical experience while familiarising passengers with using Uyo as a connecting hub.

What role do you expect the new international terminal in Uyo to play in the state’s economy?

The terminal is genuinely world-class. Ibom Air will not be its only user. We expect other international airlines to begin operating from here, which would stimulate economic activities across the state.

International airlines complement our operations rather than compete with us. They bring passengers into Nigeria, while we distribute those passengers across the domestic network. As we expand our fleet to about 20 aircraft by the end of 2028, these partnerships will become even more valuable.

It’s a symbiotic relationship. International airlines feed our domestic network, while we provide them with passengers from across Nigeria.

Some people question whether there are enough passengers in the region to sustain a hub. What is your response?

The Accra route should not be confused with the long-term hub strategy. Right now, we are simply ensuring the new terminal begins operations while we prepare for our broader regional expansion later this year. Even on the inaugural service, passengers successfully connected through Uyo with their boarding passes checked through. That experience builds confidence in the system. The real transformation will begin when we launch additional regional destinations.

What gives you confidence that the hub model will succeed?

The best example is ASKY Airlines in Lome. When ASKY began operations in 2010, Lome Airport handled fewer than 100,000 passengers yearly. Today, it handles about 1.5 million passengers each year. Interestingly, only a handful of passengers on many ASKY flights actually end their journey in Lome. The overwhelming majority are connecting passengers.

Yet those transit passengers have transformed the airport into a thriving aviation hub, creating jobs, supporting catering companies, cargo businesses, retail outlets and numerous other economic activities. That is exactly the model we want to replicate in Uyo.

Nigeria has the market size and passenger volume to build a successful regional hub. What is required is a change in mindset and investment in airport infrastructure that prioritises passenger convenience and operational efficiency. Airports should make travel easier, not more difficult. That is the standard we should aspire to.