Harold Okwa is the founder of Jetseta, a company that provides easy and affordable access to private air travel and helicopter shuttle services through an app that seamlessly connects travellers to private aviation providers at attractive fares worldwide, on the go. In this interview with Ifeoma Okeke, he explains why Nigerians are opting to fly private jets and how the industry has grown over the years.
How many private jet operators do we have in Nigeria now?
Currently in Nigeria there are about 36 private jet operators, half of this number is state owned and the other half being owned by individuals and corporate companies. Although there are an increasing numbers of foreign registered aircraft in Nigeria at present. I would say this number is around the 100 mark.
How have they grown in the last five years?
The industry was believed to have been growing rapidly from 2013- 2015, largely due to increased economic activity, which a lot of people attributed to the high oil prices at the time. From Q3 2015, it saw a sharp decline in the growth of the sector, and eventually shrinking. This was due to a number of economic and political factors in Nigeria. A major one was a spike in the exchange rates, which affected operators running costs adversely.
Why are some Nigerians opting to fly private jets?
This new understanding of what private aviation brings to the table has allowed the market to bloom and therefore generate the necessity to meet this increase in demand. This rise caught the eyes of the government in the past, which years ago removed import duties on new jets, has opted to not specify a time restriction for foreign aircraft in Nigeria and has invested in the soon-to-be-opened terminal in Abuja (although this is currently facing some delays).
This public-sector movement has been a result of the increase in the use of private aviation, and due to a lack of other competitive means of transportation. Some argue that more immediate economic development returns come from investing in the business aviation market, as opposed to building new roads or rail networks. Whatever the case, the oil and gas industry, as well as finance and manufacturing have benefited from the amenities of this industry: landing in places without commercial flights and connecting communities otherwise isolated or precariously connected.
This boom has seen local companies like Jetseta rise to the occasion and service local demand through a mobile app that seamlessly connects travellers to private aviation providers at attractive fares worldwide, on the go. Just one click by the customer and the precise aircraft for the desired route will be allocated at an affordable price. We want to make private air travel easy, connecting aircraft owners and travellers in order to increase each side’s productivity. Owners need to pay the costs of having a jet and travellers need to maximize their time to bolster their businesses.
What is the total turnover of the industry?
It is difficult to give an exact figure of the current industry turnover, but it is believed to be about $6.5 billion dollars per annum.
What kinds of services are on offer?
There are a cocktail of services on offer. Though most operators keep it simple and offer just adhoc full charter services, and occasionally would sell their “empty legs” at a discounted price. At Jetseta, we have been innovative, to create a third service, which is called ‘Single seats’, where we allow passengers pay for just a seat on popular routes like Lagos, Abuja and Port Harcourt. I am aware of some operators who have commenced doing fractional ownerships and timeshare services.
Who are the leading players?
Currently the market is somewhat an Oligopsony, with a relative good supply of aircraft, especially when it comes to large cabin, heavy jets, but fewer numbers of frequent/routine charterers. This is partly why we had to create the “single seats” option. It has allowed for a wider market of private aviation users, in a sense democratizing the private jet experience. In my view, there isn’t a clear-cut leading player, nevertheless, at Jetseta we like to see ourselves as a ‘virtual airline’, I would say we are aiming to become the leading player.
Who are their major customers?
Major customers would range from CEOs, Diplomats, Sports personalities, Entertainment celebrities, Political figures, NGO aid workers etc. Most of these customers have one thing in common; they are “time poor”. In most cases they need to get to remote parts of the country/continent, and would not readily be able to do fit this in their schedules with commercial air flight options.
What is the average cost to the customer for opting to fly private?
The cost of flying private jets depends on a number of factors ranging from the flight distance, size of the party travelling, type of aircraft to be used, waiting times, stopovers etc. However on our business jet which shuttles the Lagos, Abuja, Port Harcourt route, prices start from N70,000 (about $200) a seat.
