The month of April is here and Nigerians, especially members of the flying public, wait with bated breath for the take-off of the much-advertised national carrier – the Nigeria Air. This is generating unease among some stakeholders, Daily Trust on Sunday reports.
Minister of Aviation, Senator Hadi Sirika, had promised that the new carrier would take off in April amidst doubt from stakeholders who are not convinced on the sincerity of the Federal Government in following through the normal processes and procedure in establishing the national carrier.
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The national carrier is one of the programmes under the aviation development masterplan of the present administration. It has missed several targets and timelines since 2018 when the name and logo were unveiled at an air show in Farnborough, UK.
The suspension of the project three months later by the Federal Executive Council (FEC) was an anti-climax in the determination of the Sirika-led aviation Ministry to bring back the national carrier almost a decade after the demise of Nigeria Airways.
According to him, the proposed national carrier is a wholly private sector airline with the federal government having a five percent stake.
He had disclosed that the federal government would hold five percent, 46 percent goes to Nigerian entrepreneurs while the remaining 49 percent would be reserved for strategic equity partners including foreign investors.
He had said, “This airline, if started, and within the first few years will generate about 70,000 jobs. These 70,000 jobs are higher than the total number of civil servants that we have in the country.”
There had been doubts and misgivings over the April target set by the minister, given the rigorous processes involved in the acquisition of the Air Operator’s Certificate (AOC) which is the requirement for the commencement of commercial flights by a prospective airline.
However, it was learnt that the process commenced recently and if feelers from the Nigeria Civil Aviation Authority (NCAA) are anything to go by, the AOC of the new airline may be ready anytime soon.
During the week, the NCAA published a public notice to intimate the general public of the registration of the proposed Nigeria Air.
The notice read: “This is to inform the general public that MESSRS NIGERIA AIR LIMITED has applied to the Nigerian Civil Aviation Authority (NCAA) for the grant of an Air Transport License (ATL) to operate scheduled and non-scheduled passenger and cargo services within and outside Nigeria.
“Any person, or organization that has an objection, or representation with regards to this application should do so within 28 days from the date of this application.
“Such objection, or representation should be forwarded to: The Director General Nigerian Civil Aviation Authority Nnamdi Azikiwe International Airport Domestic Wing Abuja.”
The board of directors/Trustees was listed to include Alexander Musa Adeyemi, Mohammed Shuaibu Naibi and Mohammed Rabiu Shehu.
Daily Trust on Sunday reports that this was what the promoters of the airline had failed to do which was responsible for the doubt and mixed feelings trailing the process.
Many stakeholders have also asked the question of the readiness of the Federal Government to fulfil all the requirements for the grant of the AOC after the ATL process has been completed.
The grant of the ATL normally precedes the AOC and observers said unless some aspects of the process are waived by the regulatory authority, it might be difficult to secure the AOC this year.
Daily Trust on Sunday reports that the AOC takes about five rigorous stages and the most critical aspect is the demonstration flight which would require the prospective airline flying an empty plane for a minimum of 50 hours to some of the proposed destinations. Every domestic airline in Nigeria today went through a rigorous process. Some were said to have died on the way for not being able to fulfil the process.
But stakeholders and observers have been asking questions about the aircraft to be used by the proposed airline especially for the conduct of demonstration flights.
While those driving the process said the new airline has now been registered as a business and is waiting to take off, checks by Daily Trust on Sunday indicate that the carrier is yet to have a website but the committee set up for the realisation of the project is working round the clock to select a core investor for the national carrier.
It was learnt that the core investor which is expected to be a major foreign airline is expected to provide the aircraft for the airline to take off.
Already, Capt. Dapo Olumide, an astute aviator and former Chief Executive Officer of Virgin Nigeria Airways, has been named as the Interim Managing Director for Nigeria Air.
A source privy to the process told Daily Trust on Sunday that the core investor may be one of the foreign airlines which has indicated interest in helping Nigeria to start the new airline.
Already, Qatar Airways, Emirates, among others have indicated interest in the process. A recent report which suggested that Qatar Airways might have been selected as the core investor by the Federal Government was dismissed by the Ministry of Aviation.
It was however learnt that the core investor would be unveiled in the next few weeks which would put an end to the anxiety and apprehension over the process.
But stakeholders are already agitated over the plan. And the body of domestic airline owners have already expressed their position over the process while giving conditions for the federal government to select any preferred bidder.
One of the conditions given by the AON was that the core investor must deposit $200bn cash to the Central Bank of Nigeria (CBN).
In a position paper endorsed by 10 AON members, they observed that while “the national carrier thing is an obsolete idea worldwide, the AON is not opposed to its establishment.”
They however said, “We have witnessed deliberate demonization of Nigerian indigenous airlines in order to win both public and government approval for its establishment. Nigerian airlines who operate under deliberately skewed severe harsh operating environments have all been portrayed as weak as a result.”
The AON’s position was endorsed by Alhaji Shehu Wada, Executive Director Max Air; Dr. Obiora Okonkwo, Chairman, United Nigeria Airlines; Capt. Mfon Udom, – CEO, Ibom Air; Capt. Roy Ilegbodu CEO, Arik Air; Capt. Abdullahi Mahmood CEO, Aero Contractors; Alhaji Faisal Abdulmunaf MD, Azman Air; Capt. Edward Boyo CEO, Overland Airways; Mr. Sukh Mann, Deputy CEO, Dana Air and Barr. Allen Onyema, Chairman, Air Peace.
They stated that the process is not transparent and “is shrouded in secrecy and being championed by Nigerians and foreigners, unknown to Nigerians and various stakeholders.”
“It is pertinent to note that there is no prospectus issued for public scrutiny or investment appraisal in the process of setting up the proposed carrier.
“The so-called national carrier is a private airline being promoted as a national entity using taxpayers and government resources. There is no way an enterprise where the Federal Government is said to hold five percent equity can be called a national carrier. Private people should not use the commonwealth of Nigeria for their private business.
“We, in AON, vehemently oppose any decision or action that is tantamount to selling the country’s commonwealth to any foreign airline for free or for peanuts. Both the domestic and international airline operations network and market value when fully utilized are worth over $400bn dollars every five years. Nigeria and Nigerians should be the main beneficiaries of this massive industry.
“Therefore, any foreign airline interested in investing up to 49 percent into the national carrier, which would eventually give the said foreign carrier unlimited access to our grandfather rights to operate both within and outside Nigeria, should be made to pay nothing less than $200bn in cash to be deposited through the CBN.
“The foreign airline’s investment in the national carrier must be through the injection of cash first before any other way. Anything short of the above is like selling off the country’s wealth to another country.
“Bringing a foreign airline to come and dump their redundant excess capacity (aircrafts) on our nation in the name of investing 49 percent in the proposed carrier will do more harm than good to the nation’s economy. This is a road Nigeria has travelled before with so much regrets and shame through the adventure of Virgin Nigeria. History is about to repeat itself.”
But an aviation analyst and a proponent of the national carrier, Mr. Chris Aligbe, said the conditions by the AON amounted to “a wishful thinking.” He said the airlines should be concerned with managing their own airlines, describing them as “busy bodies and interlopers.”
According to him, their position was informed by the fear of the unknown as to what would happen when the airline takes off. He asked them to stop adopting “the dog in the manger” approach.
“Whatever they are saying is coming out of fear that it would be a formidable challenge to them. They should tell us the area they think the process is not transparent. The process is at procurement stage now and it was advertised. Why can’t AON as a group apply since there is a 46 percent stake for Nigerians?
“They don’t have a moral ground to say what they are saying. Why would an investor deposit $200bn? They should concern themselves with running their businesses efficiently and preparing themselves for the competition that will come. They are just afraid of the competition.”
As Nigerians await the arrival of the national carrier, observers say the entry of the Nigeria Air would disrupt the industry and deepen competition provided there is a level playing ground for all operators.
