Fidelity Bank Deepens Aviation Financing Footprint as Air Peace, Ibom Air, Enugu Air Expand Operations
Nigeria’s aviation sector continues to grapple with high operating costs, foreign exchange volatility, aircraft leasing difficulties, and limited access to financing, but Fidelity Bank Plc is increasingly emerging as one of the strongest financial institutions supporting the growth of indigenous airlines.
Industry stakeholders have long identified inadequate financing as a major challenge facing local carriers, with many international lessors and financiers often perceiving Nigeria as a high-risk market due to currency instability and aircraft repossession concerns. Analysts say these concerns have made it difficult for domestic airlines to secure favorable leasing arrangements and long-term funding for fleet expansion.
Despite the risks associated with aviation financing, Fidelity Bank backed Air Peace during its early years when many financial institutions reportedly avoided the sector.
Air Peace commenced operations on October 24, 2014, with an initial fleet of seven aircraft, including three Dornier 328s and four Boeing 737-500s. The airline later expanded aggressively with financial support from Fidelity Bank, including funding arrangements that supported its aircraft acquisitions from Boeing.
In 2018, Chairman of Air Peace, Allen Onyema, signed an agreement with Boeing for the acquisition of 10 new aircraft, a move financed by Fidelity Bank.
Over the years, Air Peace has grown into the largest airline in West Africa by fleet size and operations, with Onyema recently disclosing that the airline now operates 49 aircraft, including 36 outright purchases and four on wet lease.
Speaking during a press conference to announce the commencement of Abuja-London Heathrow operations, Onyema attributed the airline’s growth partly to financial discipline and the confidence reposed in it by banking institutions.
“The banking industry confidence has grown due to our financial integrity. Fidelity Bank celebrated us recently. Our financial integrity is the reason for our expansion,” Onyema said.
He added that Fidelity Bank remained the first financial institution to support Air Peace during its formative years.
“This bank is the only bank that responded to us in the early days. They believed in us,” he stated.
In April 2024, Fidelity Bank hosted a dinner in honour of Air Peace following the airline’s successful launch of direct flights from Nigeria to London, becoming the first Nigerian carrier in recent years to operate the route.
The airline’s London operations also disrupted airfare pricing on the route after Air Peace introduced fares significantly lower than prevailing market prices, forcing competitors to review their ticket costs downward.
Managing Director and Chief Executive Officer of Fidelity Bank, Nneka Onyeali-Ikpe, described Air Peace as a model of financial discipline and corporate growth.
“Today, we are celebrating one of ours. They started operations with a few aircraft and today they have expanded significantly. When you go through their accounts, you will not see personal spending. That is a lesson for everybody,” she said.
Beyond Air Peace, Fidelity Bank has also played a major role in financing other indigenous carriers including Ibom Air and Enugu Air.
Former Managing Director of Ibom Air, Mfon Udom, revealed during the reception ceremony for the airline’s Airbus A220-300 aircraft in Uyo that Fidelity Bank served as the lead financier for the acquisition.
“There are several banks supporting Ibom Air, but this aircraft in particular has been made possible by Fidelity Bank and Union Bank,” Udom stated.
He added that the airline planned to expand its fleet to 18 aircraft by 2026 while introducing additional destinations.
Representing Fidelity Bank at the event, Executive Director for Risk Management, Charles Nwoke, said the bank remained committed to supporting aviation growth in Nigeria.
“As the market leader in airline financing in Nigeria, Fidelity Bank is proud to support Ibom Air in this venture,” he said.
Similarly, Fidelity Bank also provided financial backing for the recently launched Enugu Air.
Speaking during the airline’s official launch at the Akanu Ibiam International Airport, Onyeali-Ikpe described aviation as a major driver of economic growth and regional connectivity.
“At Fidelity Bank, we stand firmly behind the potential of aviation to unlock new corridors of opportunity by boosting tourism, accelerating commerce, and creating jobs,” she stated.
Meanwhile, industry observers believe recent policy reforms by the Federal Government could further improve financing opportunities for domestic airlines.
Nigeria recently signed the Cape Town Convention Practice Direction, an initiative led by Vice President Kashim Shettima and Minister of Aviation and Aerospace Development Festus Keyamo.
The policy framework is expected to reduce risks associated with aircraft leasing and financing while lowering operational costs for airlines.
Stakeholders say the development could encourage more financial institutions, including Fidelity Bank, to deepen investments in Nigeria’s aviation industry and support local carriers seeking fleet expansion and international route development.
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