The aviation sector is a well-regulated and structured sector with the Nigerian Civil Aviation Commission as the apex regulator of airline operations. Consequently, the rules of operations lay down the requirements and procedures for airline operations. Hence, it is necessary for individuals desiring to start an airline company to navigate the legal and administrative requirements of the aviation industry and other relevant authorities before starting an airline company. This article walks you through the key steps on how to start an airline company in Nigeria.
How to start an airline company in Nigeria
1. Determine the Type of Airline Set-up
There exist different types of airline setups. However, they are commonly categorized into two;
- Commercial and
- Non-commercial (Private)
The commercial airline setup provides public transport service for compensation or hire, subject to regulatory requirements, while the non-commercial airline setup is for flight operations undertaken for non-commercial or private purposes.
2. Register with the Corporate Affairs Commission
The first step to operating an airline company in Nigeria is to register it with the Corporate Affairs Commission. This is because the Corporate Affairs Commission is the body that regulates the operations of companies and their registration under the Companies and Allied Matters Act. For an airline company, the company must have an address in Nigeria and named authorized representatives, nationality, and local presence details are part of later aviation filings. The NCAA (Nigeria Civil Aviation Authority) and other agencies will require that the operator is properly constituted and has an address and responsible representatives in Nigeria.
3. Understand the Licences and Permits Required
The Civil Aviation Act and the NCAA Regulation provide for different permits and licenses. To operate commercially or non-commercially, airline operators must obtain these permits or licenses from the NCAA, depending on the type of airline operation they wish to carry out. The licenses/permits and their purposes are outlined as follows:[1]
- Air Transport License (ATL) – issued as authorization to airlines to provide scheduled and non-scheduled services to both passengers and cargo.[2] This license is valid for 5 years and is subject to renewal every 5 years[3]
- Airline Operating Permit (AOP) – issued as authorization to airlines to provide non-scheduled services only. This license is valid for 3 years and is subject to renewal every 3 years.[4]
- Air Travel Organizer’s License (ATOL) – issued to tour, religious pilgrimage, special events, and holiday organizers. This license is valid for a period of 2 years and is subject to renewal every 2 years.[5]
- Permit for Non-Commercial Flights (PNCF) – granted to private individuals who desire to own and operate aircraft for non-commercial purposes.[6] This license is valid for a period of 3 years and subject to renewal every 3 years.
4. Obtain an Airline Operators Certificate
Before you start an airline company, you must have an operations and safety certificate known as the Airline Operators Certificate (AOC). This certificate is for operators desiring to render commercial flight services, whether scheduled or non-scheduled, for both passengers and cargo.[7] Additionally, this certificate is required to operate an aircraft in commercial air transport operations.[8] It ensures that operators meet up to safety, maintenance, crew, operations, training manuals, insurance, etc.
The NCAA’s official Advisory Circular issued in January 2024 describes a five-phase AOC certification process: pre-application, formal application, document evaluation, demonstration/inspection, and final certification.[9] Hence, intending airline companies should expect detailed documentary requirements (operations manuals, safety management system, maintenance arrangements, evidence of finance, organizational chart, crew training programmes) and on-site inspections. To obtain an AOC, an application is to be submitted to the NCAA at least 180 days before the date of intended operations.[10] The NCAA has a responsibility to issue an AOC to an applicant after investigation and upon being satisfied that the applicant is:[11]
- A Nigerian
- Has its principal place of business and registered office, if any, in Nigeria
- Meets the applicable regulations and standards for the holder of an AOC
- Is properly and adequately equipped for safe operations in commercial air transport and maintenance of its aircraft; and
- Holds the economic authority issued by Nigeria under the provisions of the Civil Aviation Act, as amended.
Furthermore, domestic airline operators are required to notify the NCAA of their routes of operation, fares, and frequency or frequencies of operation before the introduction of these routes, fares, and frequency of operations.[12]
Before starting operations, licence or permit holders must ensure the following:[13]
1. Obtain an Air Operator Certificate (AOC) and comply with the Civil Aviation Act, its regulations, and all NCAA directives.
2. Provide proof of adequate insurance for passengers, cargo, and third parties.
3. AOC holders conducting non-scheduled international flights do not need prior flight clearances from the NCAA, but must depart and arrive through designated customs airports.
4. Non-scheduled operators must submit passenger and cargo manifests, airway bills, and client service invoices to the NCAA.
For Non-Commercial Operations (PNCF Holders):
1. Obtain a Certificate of Airworthiness (C of A) before operations.
2. For foreign-registered aircraft, also obtain a Maintenance Clearance Certificate (MCC) and Flight Operations Clearance Certificate (FOCC).
3. Provide the NCAA with details of each flight, including passenger names, routes, and times.
4. Must not carry passengers, cargo, or mail for hire or reward (i.e., no commercial activity).
5. Operate strictly under the terms and conditions of their permit.
5. Compulsory Aircraft Registration
When starting out, airline companies must ensure that every aircraft they intend to operate is properly registered with the Nigerian Civil Aviation Authority (NCAA) before commencing operations. This involves submitting a duly completed application, proof of ownership or lease, and certification of eligibility in line with regulatory requirements.[14]
New airlines should also verify that their aircraft meet age limits, noise standards, and ownership criteria set by the NCAA. Obtaining a valid Certificate of Registration for each aircraft is a foundational compliance step that legally enables the airline to operate within Nigeria’s airspace and demonstrates readiness to meet safety and operational standards.
6. Set up Basic Management Structure
As an AOC holder, the company must appoint an Accountable Manager approved by the Nigerian Civil Aviation Authority (NCAA).[15] This individual must have the authority to ensure that all flight operations and maintenance activities are properly financed and conducted to the highest safety standards. In addition, every AOC holder is required to employ qualified, full-time personnel with proven civil aviation competence to fill key management positions, including:
- Director of Operations
- Director of Continuing Airworthiness
- Chief Pilot
- Safety Manager
- Quality Manager
7. Safety Management System, Security, and Insurance
A Safety Management System is mandatory; it must be fully implemented and demonstrable in practice (reporting lines, hazard identification, safety performance indicators). Security plans and compliance with dangerous goods rules are also inspected.[16] Operators must hold adequate insurance for hull, passengers, cargo, and third-party liabilities before the certificate is issued.[17]
8. Continuous Financial Monitoring and Obligation
The Nigerian Civil Aviation Authority (NCAA) places strong emphasis on the continuous financial monitoring of all Nigerian-licensed airlines to ensure their ability to sustain safe and reliable operations. This oversight is designed to promote stability within the aviation sector and protect passengers, employees, and stakeholders from the risks associated with financially distressed carriers.
Under the NCAA Regulation, airlines are required to maintain proper, transparent, and prudent financial management practices in the conduct of their operations. Each airline must submit quarterly financial data and operational records to the NCAA in the prescribed format, enabling the Authority to regularly assess its financial standing. In addition, airlines are mandated to provide annual audited financial statements along with a comprehensive management report in accordance with the standards set out in the Implementation Standards. These submissions serve as a critical tool for evaluating an airline’s solvency, liquidity, and overall capacity to meet its operational obligations.
Upon receiving the required financial documents, the NCAA carefully reviews the materials and communicates its findings or decisions to the respective airline. Through this continuous financial monitoring mechanism, the Authority reinforces accountability, promotes good corporate governance, and ensures that airlines operating in Nigeria remain financially sound and capable of delivering consistent and safe air transport services.[18]
CONCLUSION
Many businesses in Nigeria are required to be registered or licensed before operations. Such is the case with the airline companies. Starting an airline in Nigeria is capital and regulation-intensive, but with a clear plan and the right regulatory roadmap, it is achievable.
For professional assistance on how to start an airline company in Nigeria, you may reach out to us through the WhatsApp icon on this page or our email [email protected], and we’ll attend to you.
[1] https://ncaa.gov.ng/directorates/air-transport-regulation/air-transport-operations/
[2] 18.3.2.1 Nigeria Civil Aviation Authority Regulation
[3] 18.3.2.1 (b) Nigeria Civil Aviation Authority Regulation
[4] 18.3.3.1 of the Nigeria Civil Aviation Regulation 2024
[5] 18.3.5.1 of the Nigeria Civil Aviation Regulation 2024
[6] Reg 18.3.4.1 of the Nigeria Civil Aviation Regulation 2024
[7] Reg 9.1.1.5 and 18.4.2.1 of the Nigeria Civil Aviation Regulation 2024
[8] Reg 9.1.1.4 (b) ibid
[9] 4.2 Advisory Circular NCAA 2024 https://ncaa.gov.ng/media/uwlneyan/ac-ops001_certification-of-air-operator_amended_january-2024.pdf
[10] Reg 9.1.1.5 (b)
[11] Reg 9.1.1.6
[12] Reg 18.4 NCAA Regulation Part 18
[13] Reg 18.4.2 and 18.4.3 NCAA Regulation Part 18
[14] Reg 4.2.1.3 NCAA Regulation Part 4
[15] Regulation 9.2.2.2 NCAA Regulation Part 9
[16] Reg 15.1.1.2 NCAA Regulation 15
[17] Reg 1.1.1 NCAA Regulation Part 20
[18] Reg 18.13 NCAA Regulation Part 18
