Domestic carriers fret over new national carrier

 

  • FG to unveil airline tomorrow meet plane maker in England
  • China to overtake US as biggest air travel market

The establishment of a national airline got the desired momentum as Nigeria would at far- away Farnborough, United Kingdom unveil the carrier tomorrow. The unveiling would be done at ongoing Farnborough Air Show.

The Farnborough International Airshow is a week-long, biennial event that combines a major trade exhibition for the aerospace and defence industries with a public airshow.

 At the air show, world’s largest jet maker, Boeing projected that China will surpass the United States as the biggest air travel market within 10-15 years, driving a big rise in aircraft sales,

 

Boeing’s latest global industry report predicts airlines will need 42,700 aircraft over the next 20 years, up three per cent on last year’s forecast. Boeing valued the sales at $6.3 trillion (£4.8tn) at today’s prices

The closely-watched report was unveiled on day two of the Farnborough Airshow, where more orders were announced.

 

The unveiling of the airline is already sending jitters down the spine of domestic airlines with many fearing their investments and operations may crash.

Some of the operators who spoke to Woleshadarenews under condition of anonymity argued that the move would create unfair competition, violate the deregulation policy of the air travel sector, and jeopardise government’s Ease of Doing Business agenda.

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They disclosed that although it is fashionable to have a national carrier on international routes, “it will kill private airlines already operating on the routes.”

They said: “The government invited us into the industry in the 80s on the ground that it was tired of operating an airline. Many of us invested in it despite the harsh operating environment, only to start hearing now that government is coming up with its own airline again. That is why a lot of us are uncomfortable with the whole arrangement.

With the unveiling today, Nigeria is at the threshold of history, creating another national airline 15 years after Nigeria Airways was liquidated by President Olusegun Obasanjo.

This is coming as the Minister of State for Aviation, Hadi Sirika, has disclosed that the Federal Government had started negotiations with aircraft manufacturers and investors towards the unveiling of the airline.

Sirika who spoke from London said that the Nigerian delegation which he led, had met with the Management of Airplane manufacturers Airbus to negotiate the acquisition of the desired aircraft for the nation.

Sirika also disclosed that negotiations with Boeing and other Original Equipment Manufacturers (OEMs) took place on Tuesday.

According to the Minister, the ongoing International Air Show is an opportunity to negotiate with airline manufacturers with the view of getting the most competitive and best value-for-money deals for the country.

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He said he would also explore every opportunity available at the air show, an event that brings the biggest and the best in the industry, to attract more prospective investors into the Nigerian aviation environment.

Sirika explained that the show would provide an opportunity to establish a Maintenance Repair and Overhaul (MRO) facility in Nigeria, concession of some airports in the country and other components of the Aviation Roadmap the federal government.

The minister had earlier written on his twitter handle: “Negotiating Aircraft orders with Airbus at Farnborough ahead of National Carrier unveiling on Wednesday.

“Negotiations with Boeing and other OEMs tomorrow. “Met with Standard Chartered Bank earlier. All is looking good!”

Just last week, the Federal Government said a new start-up airline to be handed over to Nigeria as national airline would gulp $308.8 million.

Sirika equally disclosed that Nigeria would receive the first set of five airplanes for the airliner on December 19, 2019, just as he noted that the carrier would make profit within three years of operations. “We will make the investments and follow the business plan through private sector management.

“We intend to get a 30 aircraft market in five years, but we will begin with five aircraft on the day of launch.

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“At Farnborough International Public Airshow coming up on July 18, 2018 in London, we will unveil the name, logo, colour scheme, the structure and the type of airplane about the national carrier.

“We will also place the order for the aircraft at the event,” he said. The minister, in May, met a team from Boeing, in Abuja.

Sirika explained that government would step in to cover the funding gap at the onset and ease out thereafter, adding that government would not get involved in the management of the national carrier.

He said Nigeria’s population of over 180 million people is huge enough to support aviation, adding that the airline would take advantage of Bilateral Air Service Agreement (BASA) that the country had with over 70 countries.

According to him, it will also take advantage of the Africa Single Air Transport Market and will be the best player if government gets it right.

“But if we don’t, it will become a threat to us. But I believe we are on the right track,” the minister said. Sirika also gave an assurance that the national carrier would not kill the country’s domestic airlines.

 

Wole Shadare