Ibom Air is combining outright purchases with lease-to-own arrangements to build its Airbus A220 fleet and expand across Africa.
Chairman of the Board of Directors of Ibom Air, Captain Mfon Udom, said the airline’s acquisition strategy would support domestic recovery and regional growth over the next two years.
The airline has ordered 10 aircraft under a mixed ownership structure. It has purchased one aircraft outright and expects eight more deliveries under the programme.
“We purchased one outright from here. And so, now we are expecting eight more deliveries,” Captain Udom said.
He explained that the remaining aircraft would come through a combination of direct purchases and lease-to-own agreements.
“Those ten are for purchase. That’s lease purchase. Lease to own. As well as direct purchase, like we have done before,” Captain Udom said.
The model gives Ibom Air access to new aircraft while spreading acquisition payments across an agreed period. It also allows the airline to build ownership of its fleet instead of relying solely on conventional leasing.
“This is number two of the order of ten,” Captain Udom said, referring to the latest Airbus A220 delivery.
Airbus A220 fleet to restore domestic frequencies
Captain Udom said the immediate benefit of the incoming aircraft would be the restoration of domestic frequencies.
Ibom Air has had several aircraft undergoing maintenance in recent months. Therefore, additional aircraft will help the airline return to its previous schedules on key routes.
“With the arrival of our new A220, we are going to expand activities, both domestic and regional,” he said.
“So, immediately we will return to our normal frequencies in the domestic system. You know, we’ve had quite a few aeroplanes in maintenance in recent months.”
The airline plans to restore services linking Uyo with Abuja and Lagos. It also intends to return the Lagos-Abuja route to its former frequency.
“Both Uyo-Abuja and Uyo-Lagos, and so on and so forth. We’ll return to Lagos-Abuja, which we used to do seven frequencies a day,” Captain Udom said.
“And we’ll return to seven frequencies a day.”
The restoration will strengthen Ibom Air’s domestic network before the airline deploys more aircraft on international routes.
Ibom Air plans wider African network
Meanwhile, Captain Udom said the airline’s longer-term objective with the Airbus A220 was to expand its regional network from Uyo.
Ibom Air currently operates a route between Uyo and Accra. However, the airline plans to add destinations in West and Central Africa during the first phase of its expansion.
“At the moment, we are only flying Uyo to Accra. So, we’ll be going to Douala, Libreville, Malabo in the first phase,” he said.
“And then, of course, expand further as a terminal group.”
The planned destinations are expected to improve Uyo’s connection with other African commercial centres. They will also give Ibom Air more opportunities to serve regional passengers and businesses.
Captain Udom said the airline’s ambitions extend beyond the first phase.
“And within the next two years, when we must have received all the aircraft on board, we will be in a position to reach out to the rest of Africa, everywhere in Africa,” he said.
The strategy links aircraft deliveries directly to route expansion. As more Airbus A220 aircraft arrive, Ibom Air expects to increase frequencies and open new markets.
On the Airbus A220 aircraft amount, Captain Udom said aircraft costs vary according to the commercial structure of each transaction. Therefore, advertised lease prices may not reflect the actual amount paid by an airline.
“No, it doesn’t work like that in the industry,” he said when asked about the airline’s expenditure.
“And again, you know, what you see, the lease price of an aircraft may not necessarily be what you have paid.”
“You know, so the arithmetic they work out on each aircraft is different,” he added.
Passenger demand expected to support growth
Captain Udom said Ibom Air’s expansion would also depend on passenger growth across Nigeria and Africa.
He linked future demand to the performance of the national economy. As economic activity increases, he expects more people to travel by air.
“Okay. So, let’s just answer that quickly. You know, the passenger growth is based on the economy of the country. The economy is growing,” he said.
“So, the passenger growth will be there. And we’ll have our fair share.”
He added that Ibom Air already has a strong share of passengers travelling across its network.
“We’re already having a good share of the passengers travelling around,” Captain Udom said.
For Ibom Air, the Airbus A220 aircraft programme is therefore more than a fleet expansion exercise. It combines direct ownership, lease-to-own financing, restored domestic frequencies and new regional routes.
