New domestic carriers deepen competition along Northeast region

Passengers looking forward to  options in flight connectivity around the country will soon heave a sigh of relief as six states in the North Eastern Region of Adamawa, Bauchi,  Borno, Taraba, Gombe and Yobe wrap up plans to   establish a new carrier – North East Shuttle.

The proposed carrier will compete with existing operators including Rano Air, Max Air, UMZA Airlines, AZMAN Air, Binani Airlines, K- Impex Airlines with stronghold in the Northern Region.

The coming of the new carrier experts say will also alter the stakes for older airlines including Air Peace, Aero Contractors Airlines, Arik Air, United Nigeria Airlines, Ibom Air, Green Africa Airways , Overland Airways, ValueJet Airlines and others.

Experts in the sector have described the coming of the new carrier as a changer to facilitate improved air link across the country ensuring that underserved and unserved routes are factored into the network.

Sources hinted that the proposal is already creating unease among operators , which have worked out route expansion of flights services within the North Eastern Region.

Routes including Lagos/ Yola, Abuja / Yola , Lagos / Maiduguri, Gombe, Jalingo, Bauchi, Damaturu will come under focus as operators jostle for market dominance.

Investigations by The Nation reveal that the regional initiative is to cost each of the six  contributing states N5 billion, bringing it to N30 billion meant for purchase of two aircraft to drive the regional air shuttle aimed at enhancing air transportation.

Gombe State Commissioner of Finance and Economic Development, Alhaji Muhammad Magaji confirmed the development.

He said the initiative has been in the pipeline for some time with  six states collectively putting together a seed investment of N69 million as consultancy for the establishment of the regional shuttle.

“Gombe’s N5 billion has been approved and we are going to ensure that we make that payment to  ensure  we meet the deadline for the payment.”

“The six governors of the Northeast states had decided that there is a need for the region to have a Northeast shuttle, that is, an airline.

“The six states had agreed to contribute the sum of N5 billion each, making N30 billion for the purchase of two aircraft that will be utilised for the Northeast shuttle.

“The airline will move around the North-Eastern states and outside of the region to other parts of the country.

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“There were two decisions, either you borrow $20 million to buy, or you pay N5 billion each and the six governors have agreed to contribute that sum,” he said.

 Magaji said the shuttle would open up the region and ensure that the region has a stable air transport.

He stated that with the shuttle coming on board, the region would no longer have issues with air transportation as it used to experience.

Magaji said: “Most of the time, airlines come into the North-East and for one reason or the other, they pull out. So, for now, even when anyone pulls out, this is our own airline; it would remain with us to serve the North-East and even others outside the Northeast.”

Prior to the new arrangement, some states in the region , including Taraba had mooted the idea of setting up an airline.

Besides, Aero Contractors Airlines had entered into agreement with Bauchi State Government for air connectivity from different parts of the country.

Gombe State Government had many years ago reached agreement with Arik Air and Overland Airways to facilitate air access into the state.