Captain Mfon Udom, Chief Executive Officer, Ibom Air has called on the Federal Government to help grow the capacity of Nigerian Insurance companies to enable them handle aviation insurance completely.
Udom made the call when he received Mr Ikechi Uko, Organiser, AKWAABA Africa Travel and Tourism Market at Ibom Air head office in Uyo, on Thursday.
In a statement issued in Lagos on Friday by Uko, Udom said premiums paid by Nigerian Airlines to foreign insurance companies kept rising because of presumed country risks.
He said the government should force insurance companies to scale their capacity and review the law to allow airlines deal directly with underwriters.
“The system at play now does not help the industry and the passengers are paying the price. Even the Nigerian Economy is not benefiting from the current situation.
“No insurance company is able to completely insure a Nigerian airline, then the reinsurance arrangements create third parties and brokers that prevent efficient underwriting arrangements”.
Udom expressed appreciation for the visit, saying Ibom Air had so far done well “because it kept to its business plans, hired the best staff available and did not chase opportunities”.
According to him, the vision of the State Governor was to create a hub in Uyo, create jobs and generate economic activity for the state.
“Our success is because of the vision; we are happy with the honours that we have earned after providing good services to our passengers.
“Talking about the challenges the airline faced in its 18 months of operation, the COVID-19 lockdown almost derailed the trajectory of growth for the airline”.
The airline boss remarked that the aviation company was back to the original path, after covering up the gaps identified.
He added that it will soon be announcing good results.
He said the patronage has improved, and today, the airline had the best on-time performance in Nigeria.
In his remarks, Uko said he was in Uyo to invite Ibom Air to the 2021 edition of Abuja Jabamah where the airline will receive the award as the Best Airline in Nigeria for the Year 2020.