Nigerian airline Green Africa Airways has received new investment, which it will use to scale up operations and increase its fleet size. The startup carrier secured investment from Leadway Assurance Company Limited, one of Nigeria's largest insurance providers.
Green Africa Airways gets new investment
Startup Green Africa Airways has recently received an undisclosed sum of new investment from a Nigerian insurance corporation. The carrier, which launched operations in August last year, plans to invest in a larger fleet and expand its operations.
The investment comes from Leadway Assurance Company Limited, one of the leading insurance providers in Nigeria.
Babawande Afolabi, Founder and CEO of Green Africa Airways, said,
"We are delighted to have Leadway onboard this journey with us as an investor. This is especially significant considering the general track record of the aviation industry as a destination for local professional private capital in the country."
The airline said the new investment would go towards bolstering its fleet and expanding its operations. However, it provided no further details on the size of the investment.
In 2018, Green Africa announced a letter of intent for 100 Boeing 737 MAX aircraft. However, the airline withdrew and instead reached an agreement with Airbus for 50 A220-300s.
Tunde Hassan-Odukale, Managing Director and CEO of Leadway Assurance, said,
"It has been refreshing to see Green Africa gradually stabilizing and building a strong operational track record since entering service about six months ago. We look forward to supporting the new carrier as it enters the next phase in its journey of changing the air travel landscape in the region."
Promising beginnings for the startup
Green Africa Airways only launched in August 2021 and has already risen to become one of the top three carriers in Nigeria. The airline has flown over 150,000 passengers in this period across eight destinations in Nigeria.
CEO Afolabi added,
"We look forward to working with Leadway, not only to build Green Africa, but also to positively change the industry narrative for every stakeholder."
The airline has adopted a low-cost model and offers some of the cheapest fares in Nigeria's domestic aviation market. The Nigerian government recently opened an investigation into alleged price-fixing on domestic routes. Other than Green Africa Airways, all domestic carriers in Nigeria are under investigation for hiking up fares.
About Green Africa Airways
Green Africa Airways launched operations on August 12th, 2021. The airline operates with a small fleet of three ATR 72s but has ambitious plans to develop its fleet, including an agreement with Airbus for 50 A220-300s signed in February 2020.
This is Airbus' largest-ever deal signed with an African carrier. However, Green Africa Airways has yet to receive a single A220 and there is no word on when deliveries will take place.
Do you think this investment will go towards Green Africa's A220 deal with Airbus? Have you flown with the airline yet? Let us know in the comments.