AFG Aviation Leases Two Aircraft to Cally Air

AFG Aviation, a global aircraft leasing company, has finalized a lease agreement with Cally Air, the airline jointly owned by the Cross River State Government and a private sector partner, to provide two additional aircraft for its domestic operations. The deal, industry watchers say, represents a major step in expanding the airline’s fleet capacity, improving service delivery, and strengthening its competitive edge in Nigeria’s dynamic aviation market.

The lease, which covers two modern regional jets, comes at a critical time when Nigerian carriers are struggling with rising operational costs, limited fleet availability, and increasing passenger demand. With the acquisition, Cally Air is expected to expand its route network, improve flight frequencies, and enhance passenger comfort.

A statement by AFG Aviation confirmed the delivery timeline, noting that both aircraft would be deployed immediately after routine technical checks and regulatory clearances by the Nigerian Civil Aviation Authority (NCAA). The leasing company emphasized that the deal is in line with its commitment to supporting emerging airlines across Africa with flexible fleet solutions that reduce capital expenditure burdens.

Cally Air, which launched operations in 2021 with support from the Cross River State Government, currently operates flights between Lagos, Abuja, and Calabar. However, its growth has been constrained by a limited fleet. Aviation analysts believe the addition of two aircraft under the lease arrangement will significantly improve its operations and reliability.

Speaking on the development, a senior Cally Air official noted that the lease agreement would help the airline meet growing passenger demand, particularly during peak travel seasons. “This partnership with AFG Aviation is a strategic milestone for Cally Air. It gives us the flexibility to scale our operations while maintaining high safety and service standards. The additional aircraft will enable us to connect more Nigerian cities and provide travelers with greater convenience,” the official explained.

Industry experts say that aircraft leasing remains a critical tool for Nigerian airlines, many of which struggle to finance outright aircraft purchases due to high foreign exchange costs, access to credit, and Nigeria’s macroeconomic headwinds. Leasing allows carriers to preserve liquidity, remain operationally agile, and respond more quickly to demand fluctuations.

Commenting on the deal, aviation analyst Captain Tunde Olalekan observed that the arrangement could bolster Cally Air’s reputation as a reliable carrier. “One of the key challenges Nigerian airlines face is fleet inadequacy. When an airline operates with too few aircraft, it becomes vulnerable to delays, cancellations, and reputational risks. By leasing additional planes, Cally Air is positioning itself to build passenger trust and strengthen its market presence,” he said.

The Nigerian aviation industry has witnessed renewed interest from lessors in recent years, driven by the country’s large population, increasing middle-class travel, and expanding domestic tourism. However, the sector continues to grapple with challenges such as high jet fuel prices, maintenance costs, and currency depreciation, all of which erode profitability.

AFG Aviation noted that its lease agreement with Cally Air factored in these realities by offering favorable terms designed to align with the airline’s operational capacity. “We understand the challenges African carriers face, and our approach is to provide flexible, sustainable leasing solutions that support long-term viability,” the company stated.

The development also comes as the Cross River State Government seeks to position Calabar as a tourism hub. Aviation connectivity is seen as a key enabler for boosting travel into the state, home to Nigeria’s popular Calabar Carnival and other cultural attractions. With the new aircraft, Cally Air is expected to increase direct flights into Calabar, thereby supporting the state’s tourism economy.

Passengers, particularly from the South-South and South-East regions, have welcomed the news, noting that increased flight options would help reduce high fares often driven by limited supply. “Whenever airlines add more aircraft, it improves competition and availability. This lease will not only help Cally Air but also benefit passengers across the network,” a frequent traveler from Calabar remarked.

While the move has been applauded, experts caution that the airline must ensure effective maintenance and operational discipline to maximize the benefits. Past experiences in Nigeria’s aviation sector have shown that poorly managed leases can lead to financial strain if not carefully planned.

Nonetheless, stakeholders are optimistic. With regulatory clearance from the NCAA expected shortly, the two leased aircraft will soon be integrated into Cally Air’s fleet, expanding its service capacity ahead of the busy holiday season.

As Nigeria’s aviation market continues to evolve, industry watchers say partnerships between local carriers and global leasing firms like AFG Aviation will remain vital in bridging the gap between demand and available fleet capacity. For Cally Air, the latest deal represents not just an expansion of its fleet but also a vote of confidence in its long-term sustainability and role in connecting Nigeria’s cities.

If successfully executed, the lease of these two aircraft could mark the beginning of a new growth phase for the airline, offering travelers greater connectivity, affordability, and reliability in a sector long plagued by fleet shortages.