Air Peace signs $300m Embraer Jets deal

Air Peace says it has signed a deal to purchase 10 jets from Embraer Aerospace Corporation, as well as a maintenance agreement with the same company.

This means that Embraer, which is an aircraft maker, will assist Air Peace in setting up the airline’s maintenance facility in the country for Nigerian and international fleets.

Allen Onyema, chief executive officer (CEO) of Air Peace, disclosed this at the Aviation Africa Summit and Exhibition, held on Thursday in Abuja.

He Festus Keyamo, the minister of aviation, had given instructions that any Nigerian airline that wants to bring in brand new planes must also think of its ability to maintain those planes within Nigeria.

In line with our Air Peace fleet modernisation policy, we’ve just signed a further acquisition, a further order of 10 E175 with a firm order for five and (another) five on purchase rights. That’s what we’ve just signed,” Onyema said.

“Now, with this signature today, we’ve ordered 35 brand new Embraer planes. Remember, we had signed 30 before, which five of them have entered into the country.

“Part of the things we signed today is that Embraer is going to help set up the maintenance center in Nigeria and it will be set up with immediate effect.

So, this decision will help our national reserves and help conserve the forex of airlines in Africa when this comes to fruition.”

Meanwhile, the Embraer management said the value of the maintenance deal is $300 million, adding that deliveries would start in 2024.

“Ever since we started this relationship in 2017, it has been smooth and great, and today it’s a momentous day. This transaction costs $300 million, with the airline moving forward,” the management said.

The first two aircraft will be delivered next year. The airline needs to grow. As the business moves forward, we need to work together, and the maintenance will create jobs and drive investment. And we will move forward with Air Peace to drive this growth.”

Also speaking at the event, Keyamo said the ministry will assist every local operator to develop.

“I’m here today deliberately even though it is a private initiative, a private company in Nigeria but I’m here deliberately to show my support for the growth, sustenance, and survival of our local operators in Nigeria,” the minister said.

“I’m looking forward to any other private airline. If you reach any milestone and you are doing anything very important, invite me, I will also be there because I’m here for everyone.”

Keyamo, however, reiterated that the government has strict measures in place to ensure the safety of airlines, and that any operator who violates these rules will be punished.