By Adeniyi Onifade
Like an unbaptized innocent child, Nigeria’s official carrier – Nigeria Air still remains in limbo, four years after Minister of Aviation, Senator Hadi Sirika had, on July 18, 2018, unveiled the name and logo of Nigeria Air at the Farnborough International Airshow in London. This is despite being a major project in the Aviation Masterplan.
Nigerians have waited in vain for its take-off amidst criticisms from various quarters on why the country cannot borrow a leaf from other contemporary African countries like South Africa, Kenya, Ethiopia, etc.
Industry players see a national carrier as a catalyst to the growth and development of other sectors of the economy – tourism, manpower development and aircraft maintenance among others.
The federal government’s resolve to float a new national carrier following the demise of Nigeria Airways about a decade ago, was a welcome decision which the Aviation Minister revealed, will be private-sector-driven to maximize benefits.
Revealing further that Nigeria Air Limited had received an Air Transport License (ATL) from the Nigerian Civil Aviation Authority (NCAA), Sirika announced thus: “It is a business, not a social service. The government will not be involved in running it or deciding who runs it. The investors will have full responsibility for this,” he said at the time of the unveiling.
The project was suspended two months after it was announced when critics raised concerns over its relevance and sustainability.
The proposed airline was expected to gulp $8.8 million preliminary cost and $300 million as takeoff cost. Nigeria Airways collapsed over allegations of corruption and poor management. But the Nigerian government dismissed all concerns raised, saying the airline would begin operation before the end of 2018, following President Muhammadu Buhari’s promise to establish a national airline during his 2015 electioneering campaign.
However, in January 2022, the Federal Executive Council (FEC) had approved April 2022 as the commencement date for the operations of the new Nigeria Air.
“That Nigeria Air Limited received from Nigerian Civil Aviation Authority (NCAA) an Air Transport License (ATL), signals the end of the beginning of operations of the Airline. Commencement date of domestic operations will be announced in due course,” Mr Sirika had said.
Sirika also stated then, that 49 per cent of the Nigeria Air project would be owned by equity partners and 46 per cent by Nigerians while the federal government will own five per cent stake. The presentation of the ATL to the Interim Board of Nigeria Air took place at the Corporate Headquarters of the NCAA, Nnamdi Azikiwe International Airport Abuja.
United Arab Emirates (UAE) national carrier, Emirates Airlines, and its Qatari counterpart, Qatar Airways, have rallied behind Nigeria’s new national carrier project for successful take-off. Nigeria Air, the proposed carrier, last month, opened an invitation to interested private parties to submit proposals for the take-over and further development of the new carrier.
The ATL certificate signed by the Director General of the NCAA, Musa Nuhu, runs for a period of five years (June 3rd, 2022 to June 2nd, 2027). It is one of the certifications that must be acquired by airlines before they can commence operation while they await the all-important Air Operator Certificate (AOC) that will fully guarantee ‘Nigeria Air’ the right to commence air services. The new national carrier is expected to provide scheduled and non-scheduled services.
Anxiety over take-off
Against any last minute changes, Nigeria Air is expected to kickstart operations in the third quarter of 2022, owing to the relevance of a national carrier being very critical for the growth of Nigeria’s aviation industry.
Valuechain discovers that available documents have shown that Nigeria Air will have 49 per cent equity held by a private sector consortium including an international airline. It is also discovered that the 46 per cent shareholders would strictly be Nigerian investors, which means that in total, Nigerian shareholding will comprise at least, 51 per cent of the shares (including the 5 per cent by federal government as required by the law.
Sirika had, at different fora, said that an interim board of nine membership would take over the running of the airline and would be based in Lagos and Abuja, and other parts of the country if needed.
According to reports, the type of aircraft that would be deployed has been identified and the first batch which would be used to commence operations are currently being sourced in Europe and discussions are ongoing with Original Equipment Manufacturers and it is expected that from July, operations will kickstart after Air Operator’s Certificate (AOC) must have been acquired.
Challenges
One of the loopholes identified in the establishment of the Nigeria Air is the fact that till date, its shareholders remain unknown. It is expected that with an operational License, the airline would have been incorporated and must have submitted its MoA to the CAC where it would clearly state the names of the partners.
Valuechain investigation revealed that on the website of the Corporate Affairs Commission (CAC) Nigeria Air was not found in the public domain even as aviation experts have insisted that the entire process of setting up a national carrier must be transparent; investors visible and not shrouded in secrecy.