Green Africa Airways experienced a turbulent 24 hours, transitioning from a complete grounding of its fleet to the acquisition of its first owned aircraft. The upheaval began when ACIA Aero Leasing, a Mauritius-based lessor, repossessed all three of Green Africa’s leased ATR aircraft, citing an alleged breach of agreement. This sudden action stranded passengers and forced the airline to announce a temporary suspension of operations, attributing the disruption to an “unforeseen issue” with its lessor. While details of the disagreement remain undisclosed, the incident highlighted the precarious nature of relying solely on leased aircraft, particularly for a young airline navigating a competitive market. Green Africa’s social media announcement acknowledged the inconvenience to passengers and pledged transparency and commitment to customer service, setting the stage for a rapid response to the crisis.
The airline wasted no time in addressing the grounding. In a remarkable turnaround, Green Africa announced the acquisition of its first owned aircraft, an ATR 72-500, facilitated by a naira-denominated debt facility from Access Bank, one of Nigeria’s largest financial institutions. This swift acquisition signaled Green Africa’s resilience and determination to overcome the operational setback. The purchase of the aircraft, registered as 5N-GAB, marks a significant milestone for the airline, transitioning it from a purely lease-based operation to one with owned assets, providing greater control over its fleet and future operations. The move is expected to enhance the airline’s stability and reduce its vulnerability to lessor actions.
Babawande Afolabi, founder and CEO of Green Africa, hailed the acquisition as a pivotal moment in the airline’s journey. He emphasized that owning an aircraft would enable Green Africa to better serve its mission of providing safe, affordable, and reliable air travel to a wider customer base in the region. Afolabi’s statement reflected the strategic importance of the acquisition, not merely as a replacement for the grounded aircraft, but as a crucial step in the airline’s long-term growth and development. The move signifies a shift towards greater self-reliance and operational independence.
Access Bank’s involvement in financing the aircraft acquisition underscores its confidence in Green Africa’s potential. Roosevelt Ogbonna, Managing Director and CEO of Access Bank, praised Green Africa’s impact on the aviation industry, highlighting its potential to be a catalyst for positive change in the local market and across the continent. Ogbonna’s statement affirmed Access Bank’s belief in Green Africa’s business model and its ability to disrupt the aviation sector with its value-driven approach. The bank’s willingness to provide financial backing for the acquisition demonstrates its commitment to supporting promising young businesses in Africa.
Green Africa’s swift response to the grounding, securing its first owned aircraft within a day, showcases the airline’s agility and resourcefulness. Launched amidst the challenges of the COVID-19 pandemic, Green Africa commenced operations in 2021, quickly establishing itself as a competitive force in Nigeria’s domestic market, renowned for its affordability and punctuality. The acquisition of its own aircraft solidifies its position, allowing it to navigate future challenges with greater autonomy and control. The incident with ACIA Aero Leasing, while disruptive, ultimately served as a catalyst for Green Africa to accelerate its transition towards owning its fleet.
The airline’s rapid acquisition of a replacement aircraft, coupled with the financial support from Access Bank, demonstrates Green Africa’s commitment to its growth trajectory and long-term sustainability. While the details of the dispute with ACIA Aero Leasing remain unclear, Green Africa has clearly chosen to focus on its future, leveraging the challenging situation to strengthen its operational foundation. The airline’s commitment to transparency and customer service, coupled with its proactive approach to securing its own aircraft, positions Green Africa for continued growth and success in the competitive African aviation market. The incident underscores the inherent risks of relying solely on leased aircraft and highlights the importance of diversification for long-term stability.
