Nigeria Air: Emirates, Others Bid for Technical Synergy

Hadi Sirika

By Adeniyi Onifade

The United Arab Emirates (UAE) Emirates Airlines and Qatar Airways are among international carriers pushing for technical synergy with the federal government to establish Nigeria Air.

Besides appointing an interim team to manage the interim process, the Ministry of Aviation has also submitted a request for the Air Operator’s Certificate (AOC) and Air Transport Licence (ATL) from the Nigerian Civil Aviation Authority (NCAA).

The proposed carrier, last month invited interested private parties to submit proposals for the take-over and further development of the new carrier.

Speaking on the latest development, Aviation Minister, Hadi Sirika stated that “Nigeria is situated at the centre of Africa; equidistant from all locations in Africa of about 30.4 million square kilometre miles, 1.5 billion people and very green land. If Central and Eastern Africa are the belt of the continent, then Nigeria is the buckler. We have 200 million people and a rising middle-class with a high propensity to fly. So, Nigeria is a candidate for a national carrier.”

The minister reiterated that the government would have only a five per cent stake in the private sector venture, with no government control, interference or membership on its board.

The minister remarked: “What we said we would do, as a government, has happened since 2015. That is why Tim Clark’s Emirates, Qatar Airways and all of them are looking to go into Nigeria at multiple frequencies and multiple landing points because Nigeria is the right place for airline business”.

Chief Executive Officer (CEO) of Emirates Airlines, Tim Clark believes that Nigeria was on course with the new airlines, and Emirates would be obliged to support where necessary.

Clark said: “Is there a Business Case for the carrier? Of course, there is. There is an enormous Business Case to it. Nigerians are seeking to travel all over the world. Nigeria is the powerhouse of Africa. We are over interested in flying there because it is a rich nation in terms of demand for services.

“If the minister needs some assistance on how to go about practicing a blueprint, we will be very happy to help. They understand what they are doing and they are doing it. Probably next year, they will have a very good carrier flying; and please come to Dubai because there is so much demand”.

Tim Clark

Also, the Director-General of Airports Council International, Luis Felipe de Oliveira, reckoned that the potential is huge for a new airline.

“The potential is huge not only in Nigeria but in Africa. But we need to find a way to reduce the restriction inside and outside of Africa, to have more passengers flying”, Oliveira said.

If everything goes as planned, Nigeria Air is set to replace the defunct Nigeria Airways, which ceased operations in 2003. The replacement was designed as a Public-Private Partnership (PPP) project with the Federal Government owning only a five per cent stake. The general public will own 46 per cent and international partner airlines will have 49 per cent equity.

In 2018, the national carrier and its christening in London set the minister on a collision course with the Nigerian public. Harsh criticism of alleged prodigal roll-out at the Farnborough Airshow in London was instrumental to the “temporary” suspension of the launch, earlier scheduled for December 24, 2018.

The project has gulped a total of N14.65 billion in appropriation votes between 2019 and 2022. About 40 per cent of the sum (N6.25 billion) has been channeled to working capital, consultancy and transaction advisers’ fees.

Secretary-General of the Aviation Safety Roundtable Initiative (ASRTI), Group Capt. John Ojikutu (rtd) advised the federal and state governments not to take more than 10 per cent stake to make the airline a flag-carrier instead of a national airline.

By extension, Ojikutu said 40 per cent should go to foreign technical/investors’ partners, while credible Nigerian investors and the general public take 20 per cent and 30 per cent, in that order.

 He, however, frowned at partnering those airlines that are already competing with Nigeria on its Bilateral Air Service Agreement (BASA) routes.

“Using Qatar, Turkish or any Middle East country, EU, and U.S. Airlines that are on our BASA routes, in any partnership, cannot profit the airline. Get technical partners from Australia, New Zealand, Canada, and so on,” Ojikutu said.

Meanwhile, airlines around the world have welcomed the increasing momentum towards re-opening of borders and relaxation of travel restrictions, as COVID-19 restrictions are gradually relaxed.

The airlines under the aegis of International Air Transport Association (IATA) said there is sufficient evidence to show that testing and quarantine are no longer scientific barriers against COVID-19 infection.

An IATA survey of travel restrictions for the world’s top 50 air travel markets, comprising 88 per cent of international demand in 2019 as measured by revenue passenger kilometres, revealed the growing access available to vaccinated travellers. A total of 25 markets, representing 38 per cent of 2019 international demand, are open to vaccinated travellers without quarantine measures or testing requirements — up from 18 markets (28 per cent of 2019 international demand) in mid-February.

The easing of measures reflect the growing consensus that travel restrictions such as border closures and quarantine do little to control the spread of COVID-19. A recent report by OXERA and Edge Health, looking at the spread of the Omicron variant in Europe, concluded that travel restrictions may only delay the peak of a wave by a few days.

IATA’s Director General, Willie Walsh, noted that the world is largely open for travel. “As population immunity grows, more governments are managing COVID-19 through surveillance, as they do for other endemic viruses. That is great news for a growing number of destinations that will receive a much-needed economic boost from the upcoming Easter and Northern Summer travel seasons. Asia is the outlier.

“Hopefully, recent relaxations including Australia, Bangladesh, New Zealand, Pakistan, and the Philippines are paving the way towards restoring the freedom to travel that is more broadly enjoyed in other parts of the world,” Walsh said.

Meanwhile, IATA has announced the launch of Practice Per-Passenger CO2 Calculation Methodology. IATA’s Methodology, using verified airline operational data, provides the most accurate calculation methodology for the industry to quantify carbondioxide (CO2) emissions per passenger for a specific flight.

As travellers, corporate travel managers, and travel agents are increasingly demanding precise flight CO2 emission information, an accurate and standardised calculation methodology is critical. This is particularly true in the corporate sector where such calculations are needed to underpin voluntary emissions reductions targets.

“Airlines have worked together through IATA to develop an accurate and transparent methodology using verified airline operational data. This provides the most accurate CO2 calculation for organisations and individuals to make informed choices about flying sustainably. This includes decisions on investing in voluntary carbon offsetting or sustainable aviation fuel (SAF) use,” Walsh said.

IATA’s Methodology takes into account the following factors: guidance on fuel measurement, aligned with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), clearly defined scope to calculate CO2 emissions in relation to airlines’ flying activities. Guidance on non-CO2 related emissions and Radiative Forcing Index (RFI), and weight-based calculation principle: allocation of CO2 emission by passenger and belly cargo, among others.

“The plethora of carbon calculation methodologies with varying results creates confusion and dents consumer confidence. Aviation is committed to achieving net zero by 2050. By creating an accepted industry standard for calculating aviation’s carbon emissions, we are putting in place essential support to achieve this goal. The IATA Passenger CO2 Calculation Methodology is the most authoritative tool and it is ready for airlines, travel agents, and passengers to adopt,” Walsh said.

Social