New Domestic Carrier Set to Deepen Competition in Northeast Aviation Market

Air travel within Nigeria is set to receive a boost as six North-East states—Adamawa, Bauchi, Borno, Taraba, Gombe and Yobe—finalise plans to establish a new regional airline, the North East Shuttle, aimed at improving flight connectivity across the region and beyond.

The proposed carrier is expected to intensify competition among domestic airlines already operating in the northern corridor, including Rano Air, Max Air, UMZA Airlines, AZMAN Air, Binani Airlines and K-Impex Airlines. Industry experts also believe the new entrant will reshape competition for larger, established carriers such as Air Peace, Aero Contractors, Arik Air, United Nigeria Airlines, Ibom Air, Green Africa Airways, Overland Airways and ValueJet Airlines.

Aviation analysts describe the initiative as a potential game-changer that could improve national air connectivity by incorporating underserved and unserved routes into airline networks. Sources indicate that the proposal has already generated concern among existing operators, many of whom are planning route expansions within the North-East.

Key routes expected to come under intense competition include Lagos–Yola, Abuja–Yola, Lagos–Maiduguri, as well as services to Gombe, Jalingo, Bauchi and Damaturu, as airlines jostle for market share.

Investigations reveal that the regional airline project will cost about ₦30 billion, with each of the six participating states contributing ₦5 billion. The funds are intended for the acquisition of two aircraft to operate the regional air shuttle. In addition, the states have reportedly committed an initial ₦69 million as seed funding for consultancy services related to the airline’s establishment.

Confirming the development, Gombe State Commissioner for Finance and Economic Development, Alhaji Muhammad Magaji, said the initiative has been under consideration for some time. He noted that Gombe State has already approved its ₦5 billion contribution to meet agreed timelines.

“The six governors of the North-East states agreed on the need for a regional airline to serve the area,” Magaji said. “Each state will contribute ₦5 billion, bringing the total to ₦30 billion for the purchase of two aircraft that will operate within the region and connect to other parts of the country.”

He explained that the airline would ensure consistent air services in the region, addressing the frequent withdrawal of commercial airlines from North-East routes. “Even if other operators pull out, this will be our own airline, serving the North-East and beyond,” he added.

Magaji said the shuttle would significantly open up the region and provide stable air transportation, ending long-standing connectivity challenges.

The initiative follows earlier attempts by individual states, such as Taraba, to establish state-backed airlines. It also builds on previous partnerships, including agreements between Bauchi State and Aero Contractors, as well as earlier arrangements by Gombe State with Arik Air and Overland Airways to improve air access.

Leave a Reply

Your email address will not be published. Required fields are marked *