Ethiopian Airlines chosen as Core Investor in Nigeria Air
By Adeniyi Onifade
•The soon-to-be-created Nigeria Air will be the country’s new flag carrier
Nigeria Air has been in the works for a while now and has slowly been approaching a full launch, pending support from partners, Valuechain’s findings have revealed. It is gathered that Ethiopian Airlines has been chosen as the core investor and partner for the country’s new flag carrier. Ethiopian Airlines is Africa’s largest carrier and has shown willingness to invest in new startups recently.
Ready to take-off?
According to a ThisDay report, Nigeria’s federal government has formally chosen Ethiopian Airlines (Ethiopian) as a partner for the long-awaited Nigeria Air. The deal includes a 49% equity share for the airline, joined by 5% from the government since the project is set to be Private-Public Partnership. Notably, Ethiopian is sticking to its policy of not investing cash into a new business.
Instead, the airline will leverage its technical prowess, an abundance of aircraft, and management skills to establish Nigeria’s flag carrier. While yet to be formally confirmed, an initial pool of pilots is set to arrive in Addis Ababa for basic training for certification on the Boeing 737NG.
According to a source close to the Ministry of Aviation, Ethiopian was the only airline that bidded to lead the new flag carrier. Despite that, the choice was likely a good one, adding thus: “Ethiopian Airlines has the equipment needed for the start-up of the new national carrier, Nigeria Air. It has many Bombardier Dash 8 aircrafts, which would be the equipment that would be deployed with additional deployment of few Boeing B737 NG aircrafts. The airline is most prepared to support the Nigerian government actualise its national carrier ambition.”
Nigeria Air was first announced in the summer of 2018 at the Farnborough Air Show but suspended a few months later in November. Fast forward four years, and the carrier was once again on the radar, with several players, including Qatar Airways, rumoured to run the new operation.
In June, the airline received its Air Transport License (ATL) from the Nigerian Civil Aviation Authority (NCAA), a precursor to the all-important Air Operators Certification (AOC). The next step was finding a partner to run the airline, which is now reportedly completed with Ethiopian Airlines’ appointment.
The next few months will tell us more in terms of the airline’s timeline for take-off. With a fleet of Boeing 737s and Dash 8s, we can expect a domestic and regional focus in the initial months, a market that has no shortage of travelers in Nigeria. Keep an eye out for this up-and-coming carrier in the near future.
NCAA/Azman Air in the spotlight
All eyes were on the Nigerian government and the Nigerian Civil Aviation Authority (NCAA) as Azman Air lost its Air Transport License, ATL due to failure to pay dues and operational issues.
However, after 24 hours of outcry, the carrier signed an MoU with the government and was handed a five-year extension on its ATL to continue operations.
For now, the Nigerian market is only set to get more competitive as foreign carriers, and homegrown ones compete for a share.
Domestically, Azman Air operates flights from two main bases, Lagos and Abuja. From the former, the carrier operates services to Kano, Abuja, Kaduna, Kebbi, Gombe, Yola, Maiduguri and Portharcourt
From Abuja, on the other hand, Azman Air flies to Kano, Kebbi, Lagos, Maiduguri, Gombe, Yola and Portharcourt.
Additionally, the carrier operates return services from Kano to Kebbi, Lagos, and Abuja.
According to the Official Airline Guide (OAG), by the end of the third quarter of 2022, the airline will have deployed 413,912 seats on return flights from Nigeria, for a total capacity of 293,998,784 Available Seats Kilometres (ASKs).
Over the same period, the airline’s busiest service is the domestic service between Lagos and Kano, for a total of 64,428 seats, followed by Kano to Lagos and Abuja to Kano.
With the Airbus A340 stored, the airline is not operating any intercontinental services; moreover, in the first nine months of 2022, Azman Air operates domestic services only. In terms of frequencies, Azman Air is Nigeria’s eighth-largest airline.
Azman Air has also submitted the tax and security clearance forms to the Nigerian Civil Aviation Authority (NCAA) after an inexplicable initial reluctance. The tax and security clearance are two of the documents required by the Civil Aviation Authority to issue the Air Transport License (ATL) or Air Operator Certificate (AOC), as well as for their renewal.
Azman Air N1.2 billion legacy debt stemming from the 5% Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC) is proportionately attributed to five different Nigerian aviation agencies:
1. The Nigerian Civil Aviation Authority (NCAA);
2. The Nigerian Airspace Management Agency (NAMA);
3. The Accident Investigation Bureau (AIB);
4. The Nigerian Meteorological Agency (NiMET);
5 The Nigerian College of Aviation Technology (NCAT).
