Air Peace’s Dry-leased Aircraft Not First In Nigeria, Stakeholders Clarify

Aviation experts have dismissed reports suggesting that the arrival of Air Peace’s dry-leased Boeing 737-700 NG from AerCap is the first dry-lease aircraft to enter Nigeria in nearly a decade.

Speaking to LEADERSHIP, Olumide Ohunayo, the general secretary of the Aviation Round Table Initiative (ARTI), stated that several airlines have operated dry-leased aircraft within the last ten years. He noted, however, that the key distinction in Air Peace’s case is the sovereign guarantee provided by the federal government under the new arrangement.

According to him, this form of government backing should not be exclusive to one operator.

“This is not the first dry-lease aircraft in the industry or the first in a long time because other airlines have brought in dry-lease aircraft. The difference this time is the sovereign guarantee by the government. If the government guarantees an airline, you are sure it will be a better deal,” Ohunayo stated.

He added that extending the same level of support to other airlines would help create a level playing field and foster industry growth.

“What is extended to Air Peace should be extended to other airlines, especially those interested in dry leases. We need to provide equal opportunities for the industry to grow,” he said.

Ohunayo also commented on the federal government’s revived plan to establish an aircraft leasing company, expressing hope that the initiative would materialise under the current administration.

“We have heard about the plan for some time. I hope it comes to fruition this time, and if it does, the government should pull out and allow competent private professionals to manage it,” he advised.

Similarly, a former chief pilot at Associated Aviation Services, Capt. Mohammed Gbadamasi, acknowledged that the dry-lease agreement is beneficial to Nigeria’s aviation sector but cautioned against creating an impression that other airlines are inferior to Air Peace.

Gbadamasi, who also served as a Line Captain at Nigeria Airways, attributed the renewed interest from international leasing firms to recent efforts to sanitise the financial challenges that previously plagued the sector.

“Dry leasing has been operational until some private operators began using it for money round-tripping. Leasing companies are now reevaluating agreements due to the cleanup of past financial deficiencies. The international community is watching developments and knows when to do business in a country,” he said.

He also raised concerns about communication dynamics within the industry.

“It appears to me that the Air Peace chairman has replaced the AON spokesperson. We hardly hear from the Airline Operators of Nigeria on issues affecting airlines lately. I hope there are no attempts to make other airlines look inferior to Air Peace,” he added.

Despite these concerns, Gbadamasi maintained that the current dry-lease arrangement ultimately serves the broader interest of the aviation sector.

“I believe the dry-lease agreement is for the benefit of everyone in Nigeria’s aviation industry,” he concluded.