“We’re Victims”: Air Peace, Azman Airlines Lose $3 Million to Fraudulent Foreign Leasing Firms
- Airline operators in Nigeria under the aegis of Airline Operators of Nigeria (AON) have disclosed that firms duped Air Peace and Azman Air
- The association said that no Nigerian airline was blacklisted by foreign leasing firms, as reported by a media company
- AON disclosed that the two Nigerian airlines were scammed of $3 million by fraudulent leasing companies
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
Airline Operators of Nigeria (AON) has explained that two of its members were victims of fraud by foreign leasing companies amounting to over $3 million.
The AON spokesman, Obiora Okonkwo, disclosed this following a recent media report that leasing firms have blacklisted 13 Nigerian airlines for breach of contracts.
Source: UGC
Airlines deny blacklist story
AON disclosed that domestic airlines have remained committed to fulfilling their obligations with lessors and servicing Nigerian air passengers.
The association did not provide further details of how the two domestic airlines lost the money.
AON said:
“Air Peace, Ibom Air, United Nigeria, Max Air, and others say not blacklisted by lessors. The first report claimed that 13 airlines, including Aero Contractors, Air Peace, Arik, Azman, Dana, Green Africa, Ibom Air, Max Air, United Nigeria Airline, and Valuejet, were blacklisted for refusing to pay lessor fees.
The association demanded an apology from the media house and stated that the airlines may be forced to seek legal action over the report.
AON demands retraction and apology
It said that the report contained several inaccuracies and described it as an attempt to destroy the aviation industry
Air Peace, Ibom Air, United Nigeria, and other Nigerian airlines have denied being blacklisted by international lessors, as reported by some media outlets.
An earlier report had said that international lessors blacklisted 13 domestic airlines for not paying their lessor fees.
Airlines deny blacklist report
However, the airlines denied the report, saying the blacklist was on Nigeria and not the carriers.
Speaking to Legit.ng, Air Peace said the story was fake, and it is preparing to sue the media company that reported the story.
The airlines noted that they don’t owe lessors and have no issues with them.
They stated that the issues with the lessors involved past carriers rather than the current ones.
United Nigeria Airlines speak
According to reports, Obiora Okonkwo, Chairman of United Nigeria Airlines, disclosed that all four aircraft on the company’s fleet are the firm’s property.
He disclosed that United Nigeria Airlines fully owns the aircraft, stating that leasing is part of business and that the company has no obligations to its lessors.
Okonkwo said the issue is that there is a blacklist on Nigeria and that it has nothing to do with country risk and relationships with airlines in the past.
In a dry lease arrangement, the owner provides the aircraft to the lessee with a crew. Neither party will have an air carrier certificate if the plane does not carry people for compensation or hire.
The lessee exercises operational control, including legal responsibility for the aircraft under the lease type.
Air Peace denies blacklist story
However, under a wet lease arrangement, the owner supplies the aircraft and the crew, assuming operational responsibility, including maintenance, issuance procurement, and other legal duties.
Allen Onyema, the chairman of Air Peace, disclosed that the airline has never requested any dry lease arrangement with any lessor, saying that there is no reason to be blacklisted.
The airline chairman said Air Peace wholly owns all the airline’s aircraft.
Ibom Air also disclosed that the airline never defaulted on its lease arrangement and has no issues with the lessors.
Airfares surge
The development comes as airfares skyrocketed across several routes, with air passengers complaining of the activities of touts and racketeers in the airport.
A previous report by Legit.ng disclosed that airfares increased by over N100,000 on some routes.
Another airline secures Gatwick Airport slots
Legit.ng earlier reported that Ugandan Airlines, which recently commenced direct flights to Nigeria, is setting the stage for an important expansion in the next five years.
As part of its growth strategy, the airline has launched new international flights to London Gatwick Airport by the end of 2024.
Securing slots at London’s main airports has been a challenge for many African airlines, including Air Peace, which commenced flights on the Lagos-London route on March 30 this year.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
