National carrier: Endless wait for a dream

The Federal Government disclosed how far it has gone with its proposed national airline. How long more can Nigerians wait? How desirable is a national airline to Nigeria? Could it just be for national pride sake or pure business venture? Time shall tell exactly when the much awaited airline is going to birth. Could it be a stillborn or one that will actually be born? , writes, WOLE SHADARE

So long, too long

The project is rather long. The Federal Government and indeed the Minister of Aviation, Hadi Sirika are said to be giving the project a close monitoring amid claims and counter claims that the project is almost ready.

Not a few believe that Sirika is keeping the plans to his chest to forestall the situation that led to the spectacular collapse of Nigeria Air in controversial circumstances that left many who had looked forward to it disappointed and looked like a project that was jinxed right from inception.

 

NG Eagle aircraft

Consequently, the Federal Government has selected ‘a preferred partner just as it has begun talks with the partner as they are at the final stage of Full Business Scale (FBS).

While Egypt Air is partnering Ghana to set up a low cost airline and by extension a national airline for Ghana, Qatar Air is investing heavily in RwandAir by investing in their airport and the East African airline.

Qatar Air is equally in talks with Air Côte d’Ivoire with plans to make the country a hub for the carrier in West Africa.

Airlines bicker, Sirika forges on

 For naysayers who said Nigeria does not need a national carrier, particularly domestic airline operators, it was a period to pop Champagne for a project they were not comfortable with because of the fear that it may become a bigger competitor even when the carriers are showing signs of weakness to continue to operate profitably.

Others who are opposed to it described it as a ‘misplaced’ priority at a time the country is grappling with so many challenges economically and socially.

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But the Minister is undaunted as he is said to be moving ahead with the project with disclosure that the promoters of the project are shopping for $250 million from investors as one of the key factors in birthing an airline for the country.

Sing song
The sing song in Africa for now is national carrier. Governments may need to ask if there’s still value to having a national carrier other than patriotism or pride. And they may wonder whether it still makes sense to prop up airlines as more countries open their skies to new entrants and foreign carriers.
The Nigerian government is making its fourth attempt at a national carrier with operations expected to launch in December 2018. It’s clear the government is driving it and wants its own national brand with a global reach.

Expert’s view

Chairman, African Business Aviation Association (AfBAA) and the CEO of African Aviation Services, Nick Fadugba recently said there are many questions that need to be answered in terms of the  management and the funding of the national carrier.

Fadugba, who is also the former Secretary General of African Airlines Association (AFRAA), noted that Nigerian airlines need to cooperate and partner with themselves to maximise opportunities and drive down cost of operation.
“Nigerian is blessed with the biggest domestic aviation market on the Africa continent, bigger than South Africa, Kenya, Ethiopian and many other countries. And yet we have not been able to harness this market for our own benefit.

“The beneficiaries are foreign airlines; our airlines need to work together. If you have five aircraft, 10 aircraft, it is nothing in the world of aviation. We need a critical mass. If you look at Ethiopia, they have 100 aircraft; that is one airline, and yet we have 10 airlines here with maybe five aircraft each.

“So I believe the government now needs to brief the Nigerian people on the national carrier. Rather than doing it abroad (the unveiling at Farnborough) we need to come home and explain to the whole nation what the concept is.

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More importantly I am interested in how the national carrier would interface with all the other airlines in Nigeria. Because remember that the government is the de facto owner of two other airlines: Arik and Aero.
“So this is the first time I have seen one government own three airlines. So the government needs to coordinate its airlines strategy in terms of moving forward,” he said.
Fadugba, who is also the former Secretary General of African Airlines Association (AFRAA), noted that Nigerian airlines need to cooperate and partner with themselves to maximise opportunities and drive down cost of operation.
“Nigerian is blessed with the biggest domestic aviation market on the Africa continent, bigger than South Africa, Kenya, Ethiopian and many other countries. And yet we have not been able to harness this market for our own benefit.

Cautious optimism
Nigerian Airways collapsed 18 years ago and a 2004 joint venture with billionaire Richard Branson named Virgin Nigeria shut down shortly after he pulled out five years later because of mismanagement.
Nigeria Air which collapsed shortly before take off was to take off with 15 leased aircraft. There was also a plan to own 30 planes within three to four years flying to 81 domestic, regional and international destinations.

The big question
The question is, does every country still need a national airline? The consensus is that as more countries adopt Open Skies agreements and open their borders with neighbours, each country no longer needs its own airline, particularly loss-making ones supported by governments.
An airline operator who craved anonymity, said,“If the choice was whether I wanted to have a national airline and pay a shitload of taxpayer money just to maintain the flag on airplanes, compared to having someone else come and fill the void, I’d choose someone else,” he said. “If nations want their flags to be carried, they can do it in many other ways.”
Of course, not everyone agrees. Many governments see national airlines as “embassies with wings” and key tools for global trade. Others view their national airline as a public utility, and fear that if it goes out of business, no other carrier will back-fill the routes. Some like having a national airline merely for patriotism, national pride, and nostalgia.

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Are national airlines still vital?
Many governments fear their nations will be irrelevant if they lose their money-losing flag airlines. That’s probably a stretch. In most places, the market likely would fill the gap — provided the government got out of the way. But national pride is powerful, and few people want to see storied brands disappear.
If airlines suffer, governments may need to ask if there’s still value to having a national carrier other than patriotism or pride. And they may wonder whether it still makes sense to prop up airlines as more countries open their skies to new entrants and foreign carriers.
The most powerful national brands should be fine. Airlines like Lufthansa and British Airways long ago separated from governments, and their home markets have robust demand. But elsewhere, from South Africa to India to

 

Minister of Aviation, Sen. Hadi Sirika

Nigeria, politicians may need to ask whether it’s good public policy to pump taxpayer cash into airlines, directly or indirectly.
Most governments don’t want to let go. But some free-market proponents, like Antonis Simigdalas, who founded Aegean Airlines in Greece two decades ago, effectively putting the decades-old national airline out of business, say it’s an exercise in futility.

Last line
Still, many governments fear they live in countries where no other airlines, foreign or home-grown, would fill gaps left by a national carrier.

Wole Shadare