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Home Press Releases

EnComm Aviation warns Exportkreditnämnden could lose $16mn after BAE Systems flags it will pull support for aircraft delivering humanitarian aid

WL Writing Staff by WL Writing Staff
December 8, 2025
in Press Releases
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NAIROBI, Kenya, Dec. 8, 2025 /PRNewswire/ — According to EnComm Aviation, a Kenyan air cargo operator focused on the delivery of humanitarian aid across East Africa, its operations have been “virtually shut down” by British arms manufacturer BAE Systems, leaving Exportkreditnämnden facing losses of USD $16 million.

In September 2017, EnComm Aviation entered into a USD $16 million financing agreement at 7% interest with Malmö-based West Atlantic for the purchase of four BAE Systems Advanced Turbo-Prop (ATP) aircraft. The loan was backed by Svensk Exportkredit (SEK) and the Exportkreditnämnden (EKN) who acted as the financier and underwriter, respectively.

Now, that financing is at risk. EnComm Aviation shuttered operations after BAE Systems announced its plans to withdraw support for its last remaining commercial aircraft, the ATP. Since 2023, EnComm Aviation has been the sole remaining operator of the ATP.

In emails and meetings with BAE’s leadership, EnComm was led to believe BAE would support for at least five years and so long as there was one ATP aircraft type in operation. Yet just over a year later, BAE pulled support for the ATP completely. At no point did BAE provide any opportunity for consultation or stakeholder engagement or speak to EnComm Aviation, despite claiming to do so.

This comes at a time of record profits for BAE. The arms manufacturer was recently contracted to provide Norway with frigates designed for anti-submarine warfare in a deal worth £10 billion.

EnComm Aviation has since had to close operations, resulting in over fifty local job losses and most devastatingly cancelling its upcoming, year-long contract with the World Food Programme. Between March 2023 and September 2025, EnComm’s aircraft flew 18,677.13 metric tonnes of aid cargo to Somalia, South Sudan, Tanzania, Democratic Republic of Congo, and Chad. EnComm Aviation is seeking $250mn in losses and damage, claiming negligent misrepresentation and misstatement by BAE.

EnComm Aviation’s Director, Jackton Obuola, said, “EnComm prides itself on our ability to work with international partners for the delivery of much needed humanitarian aid. While the SEK and EKN were generous in their support, that financing is now at risk after BAE virtually shut down our operations overnight. While governments across Europe are forgoing aid and ramping up defence investments, the people of East Africa are put at greater and greater risk with no hope in sight.”

 

Cision View original content:https://www.prnewswire.co.uk/news-releases/encomm-aviation-warns-exportkreditnamnden-could-lose-16mn-after-bae-systems-flags-it-will-pull-support-for-aircraft-delivering-humanitarian-aid-302634414.html

WL Writing Staff

WL Writing Staff

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