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Airline Startup Of The Week: Nigeria's NG Eagle Granted AOC - SIMPLY FLYING
Another Nigerian startup airline claims to have received its air operator's certificate. Nigerian Eagle (operating as NG Eagle) airline is even reported to be in the running to act as a national carrier following litigation preventing Nigeria Air from taking to the skies.
NG Eagle, based at Murtala Muhammed International Airport in Lagos, is a new startup airline formed partially from assets belonging to Arik Air. The prospective carrier is a 22 billion naira ($53 million) airline startup project by the state-owned Asset Management Corporation (AMCON). Nigerian Civil Aviation Authority, however, has yet to confirm the Nigerian media reports that startup NG Eagle has finally been granted an air operator's certificate (AOC).
What is the latest on an operating certificate?
When reached by Nigeria's LEADERSHIP publication, Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria, alleged NG Eagle had received an AOC for domestic operations, adding the airline was "potentially Nigeria Air," referencing the stalled national carrier. Government officials were more hesitant to confirm the news. When reached by ch-aviation, NCAA Spokesperson Sam Adurogboye said on Thursday, "I am not aware of an AOC to NG Eagle."
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The Nigerian Civil Aviation Authority (NCAA) recently proposed amendments to civil aviation regulations. The motion would entail changing several processes, including acquiring and renewing Aircraft Operating Charters.
Where did it come from?
The startup carrier is a project of the Asset Management Corporation of Nigeria (AMCON), a department of the Federal Government designed specifically for the recovery of debts. There are reports that NG Eagle began with assets repossessed from one of AMCON's other assets, Arik Air, which was acquired in February 2017 due to "mismanagement" and significant debt.
The Nigerian National Assembly ruled in February 2022 declared NG Eagle would not be certified until Arik Air offsets an outstanding debt of 10.8 billion naira ($24.8 million). Unions in the country were divided on the subject as some argued it would increase employment in a country where the aviation industry is facing a lack of job opportunities instead of a shortage of pilots.
The Association of Nigerian Aviation Professionals and the National Union of Pensioners warned the NCAA against granting NG Eagle its Air Operators Certificate based on the debt Arik Air owes the Federal Airports Authority of Nigeria. Other unions have insisted that there is "no correlation between the legacy debt and the issuance of AOC by the regulatory body." The opposing unions described the call as provocative and irresponsible, citing that the two unions in question do not have members in Arik Air or NG Eagle.
The Chief Executive Officer of Arik Air, Captain Roy Ilegbodu, in a 2021 interview with AirInsight in Lagos, highlighted that the AMCON-owned airline NG Eagle is an entirely different entity from Arik Air (also owned by AMCON) as there is no connection between both airlines. Ilegbodu explained to the paper that the fact that two Arik aircraft livery were painted in NG Eagle colors was because the assets were mortgaged for a loan, and the owners (AMCON) took possession of their assets:
“In reality, there is no connection between the two. That said, you are aware that NG Eagle is solely owned by AMCON and of course you know that Arik Air itself is in receivership and the receivership was instituted by AMCON which is based on the fact that Arik owes significant sums of money to AMCON"
A third Boeing 737 belonging to Arik Air has since been spotted sighted at Ethiopian Airlines' Maintenance Repair and Overhaul (MRO) facility in Addis Ababa, Ethiopia, awaiting rebranding into the NG Eagle fleet.
