Capt. Sanusi Advises State Governments Operating Airlines to Prepare Exit Strategies

Capt. Ado Sanusi, a prominent aviator and the Chief Executive Officer of Aero Contractors, Nigeria’s oldest airline, recently shared his insights on the aviation sector during an exclusive interview. He discussed the industry's challenges and why it continues to struggle despite recent developments.

Sanusi expressed his view on the state of the aviation industry in 2025 and its prospects for 2026, stating, "Last year, there was no substantial growth in terms of airlines, infrastructure, or attracting significant investments to the sector. While there have been some improvements in 2025, we must acknowledge that we have not made meaningful progress along the aviation roadmap. This raises concerns about the factors impeding our potential growth."

He emphasized that aviation in Nigeria still functions as a nascent industry, despite its crucial role in economic development, and this stagnation is apparent not only in Nigeria but across Africa as well.

In 2025, several state governments initiated the construction of airports and the establishment of airlines, which, according to Sanusi, brings up a dual concern. "While this demonstrates an increase in capacity, the question remains: is it sustainable? If executed without a sound strategy, it may not facilitate necessary growth. State governments should consider unifying their operations into a regional model, but they must also develop exit strategies. It is unrealistic for a state governor to boast about launching an airline during their term when their successor may not have the vision or commitment to sustain it."

He questioned whether the focus on starting airlines is a wise allocation of resources in light of the pressing needs for education and healthcare within those states. As an alternative, Sanusi proposed that if state governments have excess liquidity after addressing fundamental infrastructure and public service issues, they could invest in planes and lease them to capable airlines as a means of generating revenue.

Despite being an industry player and believing that enhancing capacity is key to growth, Sanusi cautioned that it is imperative to prioritize proper execution and sustainability. He reiterated that new state-run airlines must incorporate exit strategies, as it is unlikely that state governments can operate airlines effectively in the long term.

When prompted about government reforms necessary to boost domestic passenger numbers, which have recently waned, Sanusi highlighted the need for genuine reforms in the aviation sector, including a review of policies that support the sustainable growth of airlines and the financial independence of regulatory bodies.

He noted that while certain reforms have been instituted, what is truly required are substantial changes addressing the competitiveness of service providers, easing taxes on airlines, and ensuring financial inclusivity to attract investments for acquiring modern aircraft.

Regarding the domestication of the Cape Town Convention, Sanusi mentioned that while Nigeria has made progress, translating this into an influx of new aircraft has not occurred. He cautioned that operators must convincingly demonstrate to global leasing companies that Nigeria has established a favorable environment for asset management, which requires a consistent commitment to legal compliance.

Additionally, Sanusi highlighted ongoing issues with levies and taxes that burden airlines, stating that the current frameworks inhibit industry growth. He argued for greater transparency in charges that are internationally recognized and outlined the necessity for parastatals to adopt cost-recovery models in their operations.

As for the ongoing rehabilitation of the Murtala Muhammed International Airport, Sanusi expressed optimism declaring, "If the federal government invests nearly a trillion naira, it should lead to the construction of a brand new, modern terminal equipped with essential services that meet international standards."

He concluded by discussing Aero Contractors' plans for expanding its Maintenance, Repair, and Overhaul (MRO) capabilities and aircraft operations, stating they aim to accommodate larger aircraft types and expect to secure approvals that will enable them to broaden their service offerings across the aviation market.