As the December deadline given by President Muhammadu Buhari for the commencement of the Nigeria Air approaches, our correspondent looks at the possibility of actualising this target in the face of the current challenges and court cases against the Nigeria Air.
In October, 2022 President Muhammadu Buhari gave the minister of aviation Hadi Sirika, a marching order to ensure the establishment of Nigeria Air, the country’s national carrier by end of December, 2022.
However a Federal High Court in Lagos had issued an order of interim injunction restraining the Nigerian government from proceeding with the establishment of its proposed national carrier.
The temporary injunction was given in a suit marked FHC/L/CS/2159/2022 and filed by registered trustees of the Airline Operators in Nigeria (AON), Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airline Company Limited, and Top brass Aviation Limited, the plaintiffs.
It said Justice A. Lewis-Allagoa who granted the order on Friday, November 12, 2022, ruled that an Order of Maintenance of Status Quo by all the parties in the suit restrained them from taking any further step(s) in relation to the subject matter of the suit pending when the determination of the Motion on Notice is granted.
About eight domestic airlines sued the federal government to court, listing Nigerian Air, Ethiopian Airlines, minister of aviation, Hadi Sirika, and attorney-general of the federation, Abubakar Malami, as defendants.
Among other prayers, the airlines want the court to stop the national carrier deal and withdraw the Air Transport Licence already issued to Nigeria Air by the federal government and the Nigerian Civil Aviation Authority (NCAA).
With November coming to an end and the recent recent court judgement stopping the take-off of the Nigeria Air, stakeholders have expressed doubt that the federal government will meet the target.
Also, the different controversial issues sorrounding the proposed national carrier is also one of the many challenges facing the industry.
Members of the House of Representatives Committee on Aviation and the Airline Operators of Nigeria (AON) have expressed displeasure over the federal government’s choice of Ethiopian Airline as the preferred bidder and the five percent equity allotted to Nigeria in the proposed national carrier, Nigeria Air.
The chairman of the Committee on Aviation, Hon. Nnolim Nnaji, was of the view that the shares allotted to Nigeria was tantamount to mortgaging the interest of the country to Ethiopia.
According to him, “You are mortgaging our national interest to Ethiopia. That is why we invited you as a parliament. You can’t tell us that we are coming together. Coming together with what?
“When you talk about alliance you are talking about countries bringing in their interest to form alliance. Honourable minister, let me explain to you, it is very simple. You are selling our rights.
“I wonder how another country’s airline that will come and manage our airline will make Nigeria an aviation hub. It is very difficult. Ethiopian Airline cannot make Nigeria an aviation hub. Ethiopian Airline is coming to take what we have and we are talking about repatriation of fund, this is where we will see blocked funds.
“You are an aviator, frankly speaking we expect something better from you. We don’t have problem with setting up a national carrier. You know we don’t have problem. But we are thinking that the direction we are going is very difficult.
“We are concerned about the interest of Nigeria. The traffic belongs to Nigeria, that we are not doing well today does not mean we can’t do well tomorrow. We cannot offload our BASA to a small country like Ethiopia and Ethiopia will be running our airline for us.
“How do you think tomorrow we can be better when Ethiopia has taken the industry. They will bring all the planes that they are not using to Nigeria. We are concerned about the future. Once they take it we are completely off.”
While corroborating the lawmakers’ assertions, the vice president of AON, Allen Onyema said that the manner Ethiopia was coming into the arrangement for Nigeria Air could cause existential problems for local airlines.
According to him, there was need to carry domestic airlines along in the process.
He said if the kind of support given to international operators were extended to local operators, they would do better, adding that local airlines don’t want Ethiopian Airline to come in and ravage the country.
Also, Captain Roland Iyayi of AON said, “Many issues have not been addressed by this proposition. These issues must be addressed to be of benefit to Nigerians. There is need to have a structure that takes the interest of the country and domestic airlines. Domestic airlines can be equipped to become national carriers. The operations of the Nigeria Air could stifle domestic operators if not properly managed.”
Also, the principal managing partner, Avaero Capital Partners, Sindy Foster, noted that the arguments in favour of the national carrier are that it will increase capacity, reduce the cost of tickets and add employment.
“However, it will likely operate at the expense of the domestic airlines, backed by government money and all the largesse that goes with that privileged position. Therefore, it will disadvantage domestic airlines who won’t be able to compete with the bulk purchasing of fuel or the dollars which appear to be available to the national carrier; so instead of increasing the market, the market will retract.
“The three aircraft which the national carrier is bringing can easily displace 10 aircraft of airlines currently struggling. When supply retracts, prices will go up.
“In terms of employment, the project is starting off on the wrong foot. It has been reported that the three aircraft will be wet-leased which means that the crew will not be Nigerian. For a national carrier which was positioned as a generator of employment for Nigerians, this will be a kick in the teeth.”
Recall that the federal government had announced Ethiopian Airline as the preferred bidder for the proposed airline.
The minister, Sirika had said the national carrier would be launched with Boeing 737-800 (NG) aircraft, followed thereafter with B787 aircraft for international operations.
Addressing the lawmakers, Sirika said the country has five per cent equity, while investors have 46 per cent share, with 41 percent share for Ethiopian Air.
He stated that Ethiopia is the second most populous country in Africa, with 120 million citizens while Nigeria is the most populous with 250 million, hence connecting the market, with a combination of the two countries is good for Africa.
While disclosing that all international across the country have been declared as free zone as part of ongoing efforts to attract investors, both and local and foreign direct investment, the minister said President Muhammadu Buhari had given marching order to the ministry to conclude the process for the launch of the national carrier by December, 2022.
Sirika said, “In the next six weeks, we will have the full business case. For now, it is not Ethiopian Airline only. It is an Ethiopian Airline consortium. It is the structure that the business case has recommended; that there should be five per cent for government.
“That it should be 46 per cent for Nigeria entrepreneurs and the remaining international partners. And this partner in this case happens to be the consortium by Ethiopian Airline.
“Ethiopia may seem to be competitors to us. But they are partners. They are no longer competitors. Nigeria deserves a very strong, visible efficient airline. Partnership in international civil aviation is not new. Airlines can buy shares in one airlines or the other. It is not new; it is the norm. So are also alliances.”
