The government is stepping up efforts to create a new national carrier after attempts to create one after the defunct Nigeria Airways failed. Aviation industry experts have proposed various strategies to make this vision a reality, writes Olasunkanmi Akinrotan.
Nigerians recall how the government’s attempt to launch Nigeria Airways in the final days of former President Muhammadu Buhari’s administration ended in disappointment. There has been no national carrier for more than 20 years since Nigeria Airways ceased operations in 2003 and went into liquidation in 2004. The government decided to liquidate the airline due to poor performance and debt.
After several promises to provide Nigerians with a national airline, former Nigerian Aviation Minister Hadi Sirika officially unveiled Nigerian Airways in Abuja on May 27, 2023, just 48 hours before the end of his term. did.
The minister had previously revealed that Nigeria Airways would begin operations before the swearing-in of the new government on May 29, 2023, but the airline did not begin operations in April 2022 as planned.
Following the announcement by Nigerian Airways on May 27, 2023, reports surfaced that the minister had chartered an Ethiopian Airlines aircraft for the service.
Responding to the allegations, the Minister said in an interview with AriseTV that the agreement was that “as soon as the AOC is ready, the take-off of the three airlines in the name of Nigerian Airways will begin operations”, but that the aircraft was not a marketing strategy. He said it was the airline’s owner’s wish.
He acknowledged that he could not have kept the airline on the ground when the plane was internationally registered and not ready for takeoff.
“Ethiopians are masters of the game,” he added, suggesting that they intentionally did not keep the planes in the air until they began operations.
In July this year, Serika’s successor, Festus Keyamo, revealed that the Nigerian aviation project remained suspended.
The minister spoke through his special assistant, Tunde Moshood, while reacting to Ethiopian Airlines’ latest comments on the issue.
“They can say what they like, but as far as we are concerned the project is at a standstill and the Honorable Minister is awaiting the President’s verdict on it. We can, but our current position on this issue is what I just told you,” Moshood said while reacting to the Ethiopian national airline’s comments on the issue.
Ethiopian Airlines Group CEO Mesfin Taseu told news agency Ethiopian Tribune that the Nigerian government was no longer interested in the project.
“The Nigerian government has lost interest in partnering with foreign airlines,” Taseu said.
This announcement by Ethiopian Airlines comes just two months after the federal government reaffirmed the indefinite suspension of the controversial Nigerian aviation project.
Keyamo has previously criticized the deal with Ethiopian Airlines as unfair to Nigeria’s airlines, saying the federal government would allow foreign companies to dominate Nigeria’s aviation industry, thereby hurting the growth of local companies. said it was irresponsible.
The national airline debuted and was officially announced at London’s Farnborough International Airshow in 2018 and operates under a shared ownership agreement between the federal government, shareholders and partner airline Ethiopian Airlines. It was expected that it would be done.
The plan was for the Ethiopian airline to manage its operations under a management agreement, with the aim of connecting Nigeria’s local market with international markets and destinations.
Dissatisfied with the establishment of the airline, Nigerian airlines dragged the Nigerian government to court. AON said it did not enter into a legal battle with the government out of bitterness or fear of competition, but rather to demonstrate fairness, impartiality and transparency in all government business transactions and private sector initiatives regarding the national airline project. He said it was because he wanted it.
In 2022, the Federal High Court in Lagos granted an interim injunction against the Nigerian government to prevent the establishment of a proposed national airline.
This interim injunction was issued in a suit marked FHC/L/CS/2159/2022, against AON, Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigerian Airlines Company Limited, and the registered trustees of Top Brass Aviation. As a plaintiff, this is limited.
In August, the Federal High Court in Lagos reached an agreement with AON, blocking the sale of Nigerian Airlines to Ethiopian Airlines. After determining the issues in the case, the court declared the sale of Nigerian Airlines shares to Ethiopian Airlines null and void.
Judge Ambrose Ruiz-Alagoa has ordered that the federal government’s plan to establish a national airline, Nigeria Airways, be halted.
The federal government had earlier halted the process after massive fraud was discovered throughout the process.
However, in a new development, the Asset Management Company of Nigeria is mooting the idea of merging Arik Air and Aero Contractors Airlines, which are under its control, into a national airline.
An AMCON official, who spoke on condition of anonymity, claimed that the merger of Arik and Aero Contractors is one of the easiest ways to make the dream of a national airline a reality.
The source revealed that AMCON is once again pitching the merger proposal to the federal government.
These experts believed that merging airlines for the purpose of creating a national carrier would not only put the problem of huge debt behind them, but would also enable airlines to merge. It would also help the federal government get its airlines up and running quickly, as it would save the federal government the financial burden of purchasing new aircraft.
“The former management of AMCON presented the idea of converting Arik and Aero into a national airline. However, the former aviation minister did not support the idea. We presented it again because it is the best option. I will.
“Unfortunately, the special purpose vehicles created by AMCON’s previous management to transform Arik and Aero into national airlines have been sold. However, it is possible to create another SPV for this purpose. ” explained a senior AMCON official.
However, some noted the importance of private investors in the deal and believed a flag carrier rather than a national carrier was in the country’s best interest.
At one point in Nigeria’s history, a national airline flourished. The now defunct Nigerian Airways was established in August 1958 after the dissolution of West African Airlines Ltd.
It finally ceased operations in 2003 due to military invasion, mismanagement, corruption and bad debts, and was liquidated in 2004.
At its peak, Nigeria Airways had a fleet of over 30 aircraft. Nigeria Airways was later taken over by Virgin Nigeria and its ground facilities were taken over by Arik Air.
Despite the obstacles faced, Nigeria Airways’ achievements were a beacon of hope and symbolized the country’s aspirations for a strong and prosperous national airline.
One might wonder why a country like Nigeria with dwindling resources needs a national airline, despite the costs involved.
However, there are compelling reasons to consider. First, national airlines foster economic growth and development. Its presence can play an important role in facilitating trade and business links, attracting foreign investment, and fostering the growth of ancillary sectors such as hospitality, transportation, and tourism services.
The need to shuttle air traffic in the absence of a competent local airline, and the need to represent the country in other countries and create employment opportunities, makes it necessary for any country to have a national airline. It happens often.
Additionally, the creation of domestic airlines allows countries to retain revenue that would otherwise be lost to foreign operations.
For example, according to Ventures Africa, Nigeria loses about $2.3 billion annually on capital flights to foreign airlines. Owning a national airline means that a significant portion of previously lost revenue will be kept within the country.
The national airline also facilitates the repatriation of citizens in times of crisis and ensures safe return. In the event of conflict or civil unrest and civil flights are disrupted or unavailable, national airlines can step in to provide evacuation services and bring citizens back to their home countries.
For example, when Nigerian students were trapped in Sudan, which has been devastated by the Russo-Ukrainian war and civil war, a national airline could have helped speed up the repatriation process. Therefore, rather than relying solely on the goodwill of a commercial airline like Air Peace, which can lead to delays and logistical hurdles, a national carrier could facilitate more efficient and coordinated rescue operations. It could have been done.
Moreover, a national airline gives a country a sense of national pride. It is a tangible representation of this country’s achievements and ability to compete in the international space.
As Nigeria continues its push to establish a national airline, watchers are eagerly hoping for the dream to come true soon.
Dr. Kingsley Nwokoma, Chairman and Resident Representative of the Foreign Air Carriers Association to Nigeria, said the country needed a flag carrier rather than a national airline.
Mr Nwokoma said stakeholder engagement cannot be compromised, insisting there was no need for government to border on funding for airlines.
He said, “No, a flag carrier is appropriate, as is done in other climates. AMCON is funding these debt-laden airlines and injecting more money. AMCON should be sold and sold.
“This is why for flag carriers like KLM, Lufthansa and British Airways, the burden is on investors, not governments.
“Flag carriers bear the name of a country and enjoy preferential treatment and the BASA agreements of each country. Private investors are important here.”
Another industry expert, Olumide Ofunayo, said the entry into the national airline depends on the country’s vision for the airline industry, but said it was time to free the two most indebted airlines from AMCON’s control. I expressed my opinion.
“It depends on how the government feels,” he said. Now, if you’re happy to have a national airline, you’re happy to have more aircraft, but I feel it’s time to take the most indebted airline away from AMCON. Since the desired results cannot be achieved under AMCON’s management, the Ministry of Aviation will probably take over. ”
Another industry expert, Sheri Kyari, said in an interview that for the national airline to succeed in the country, government officials must have a high level of courage and selflessness.
He said airlines also need to accept that “with limited capital, they don’t have what it takes to compete on the international stage.”
He further added, “For Nigeria to successfully run a national airline, it will take courage and the political will of the government to force it because in any attempt to start a national airline; This is because personal interests are always at issue.
“I hope that Nigerians understand that continued ethnic elevation and attempts to divert aviation interests to one tribe are counter-productive.”
He added: “Nigerians must come together to fight the global aviation industry and run the business of airlines straight without too much politics.
“Keeping all this in mind, the government can put in place a framework for the establishment of a national airline in which Nigerians will have a substantial stake, but for the first 10 years, especially at the management level. , there may be foreign technology partners.”
