It has been revealed that the major obstacle Nigerian airlines face is funding and how to secure long-term credit facilities at low interest rate.
Aside the revelation, banks have been reluctant to fund airlines because of the perceived inability of airlines to effectively service their loans from indigenous banks in the past, coupled with the fear built around air crashes that were recorded in the past.
At high interest rate and short term, it was difficult for airlines to access the kind of funding for the capital intensive business as they needed. This explains why many Nigerian carriers operate small, despite the high passenger traffic in the domestic market.
What the banks started doing despite their skepticism is to evaluate the inherent risks in financing airlines in a customised system where they look at the ability of individual banks to see the promise they have; not only to service the loans given to them, but to also operate profitably in order to effectively utilise and benefit from the credit facility given to them and also to have future projections.
But contrary to all of these calculations by banks, Fidelity Bank has revealed the funding secret of Air Peace in the last 10 years of its operations.
At the celebration of 10 years of successful operations of Air Peace, West Africa largest carrier, in Lagos last Friday, the Managing Director of Fidelity Bank Plc, Dr. Nneka Onyeali -Ikpe, revealed why the bank trusted the Chairman of Air Peace, Dr. Allen Onyema and supported his airline business with the funding it needed.
“We did the heavy-lifting at the time when nobody believed in sponsoring the aviation industry because for no reason, statistics showed that it was a risky business, and like the minister had said, many had died before then. So when we made pitches to the board to finance airlines, they were like “don’t go near there” but we believed in Allen, and we believed in his strength of personality and I stand here today to tell you that it’s been a wonderful experience. We are here today to celebrate them and say congratulations and this is just the beginning of great things to come,” Onyeali-Ikpe said.
She described Onyema as a financially disciplined businessman whose integrity is worthy of emulation, disclosing that Fidelity Bank has been with Air Peace right from inception, adding that the company’s integrity is a reason for the sustained relationship.
“The biggest thing I can tell you today about the company is their financial discipline. Anytime I have reason to say it, I always say it. Air Peace led by its Chairman, has what you call financial discipline. You don’t remind them when their payments are due, and I don’t know which banker would not be delighted by such,” Onyeali -Ikpe further said.
While congratulating the Air Peace Chairman and all the staff for the airline’s achievements, the Fidelity boss assured, saying, “We started with the first aircraft and now we are over fifty-one. We know they have fought battles both internationally and locally and they’ve survived. Off the top of my head is the COVID period. It was a very difficult time but they survived. We are happy to be a strategic partner of Air Peace and we will continue to be.”
Reacting to Fidelity Bank Managing Director’s statement, Onyema in his speech at the event noted that Fidelity “has always been there from the beginning. Fidelity Bank has inadvertently created a kind of perception that has changed the world of aviation in Nigeria by making the banking industry to start looking the way of the aviation industry.”
Onyema said: “Thank you to Fidelity. But of course we must also thank Air Peace, because if Air Peace had faltered, it would have robbed off negatively on the industry. Fidelity has been very supportive, this is a bank that could give you up to any N100, 000 as long as you are a salary earner, you can borrow from Fidelity. I encourage the banking industry to help to energise the economy of this country. If the banking industry can step out today, to take these goals, maybe crime will reduce. So I thank you Fidelity for what you have done for Air Peace. You have created over 50,000 indirect jobs. So it has been a roller-coaster with you, we thank you very much.”
Air Peace officially commenced business on October 25, 2014. Since then, the company has grown to be a reputable airline in the country, even as it commenced international flights in 2022 with a flight to China. From seven aircraft and five destinations on its first day of operations, Air Peace has grown into a leader in West African aviation.
Founded in 2014 by visionary leader Dr. Allen Ifechukwu Onyema, the airline connects people across Africa and beyond with a fleet of Boeing and Embraer aircraft. The airline’s ‘No City Left Behind’ initiative has brought service to underserved regions, fostering social and economic development. Air Peace’s commitment to corporate social responsibility has led to transformative initiatives, from scholarships and health programmes to environmental conservation. The airline’s 10-year journey exemplifies resilience, innovation, and a relentless focus on customer satisfaction.
As the celebration concluded, attendees were inspired by Air Peace’s journey and looked forward to the next decade of its impact. The 10th anniversary was not only a tribute to the airline’s success but a powerful reminder of its dedication to elevating African aviation and connecting communities across borders.
In a special awards ceremony, devoted Air Peace staff that have exemplified themselves to duty over the past decade, were honored. Categories included: Longest Serving Staff, Pilot, Cabin Crew, Engineer, Support Staff, Ground Operations, and Aviation Security Personnel
The airline also recognised top trade partners in the travel sector, awarding travel agencies that have consistently promoted Air Peace’s services. Corporate Client Awards were given to companies that partnered with Air Peace to meet their corporate travel needs.
Air Peace celebrated its most loyal passengers, presenting a special Frequent Flyer Award to those who have flown over 250 times with the airline. This category was especially inspiring, reflecting the airline’s strong connection with customers who continually choose Air Peace as their preferred airline.
The event was a blend of glamour and entertainment, featuring electrifying performances from top Nigerian artists. Soulful renditions by Efezino and Mirabel Chisom, set the mood, followed by gospel star Ada Ehi, who captivated the crowd with uplifting songs. Comedian Kenny Blaq brought humor to the evening, leaving the audience in stitches with his lively act.
The momentum continued with Timi Dakolo’s powerful performance of “Great Nation,” resonating deeply with the audience as a symbol of Nigeria’s unity and resilience. Kcee and Flavour followed with Afrobeat rhythms that had guests dancing, while Davido closed the night with an exhilarating set, delivering hit after hit to the crowd’s delight.
