Strategic investors to own 50% of Nigeria Air

• Ethiopian Airlines submits bid
• Sirika: We’ve no favourite

Nigeria is prepared to offer over 50 per cent of Nigeria Air, a new national airline for the country expected to make a debut on December 19, 2018, to strategic investors, Woleshadarenews has learnt. Also, there are indications that Africa’s most profitable airline, Ethiopian Airlines, may stake substantial shares in Nigeria Air.

The carrier had already submitted a proposal to the Nigerian government regarding Nigeria Air, according to the Chief Executive Officer of Ethiopian Airlines, Tewolde Gebremariam.

“We are among a small group with an interest in establishing a national airline in Nigeria. We do not know the results of the tender, though we are frontrunners,” Gebremariam was quoted by Reuters.

Tilman Gabriel, who is helping to coordinate the project, told Bloomberg that Nigeria has no cap on foreign ownership of locally flagged airlines and is prepared to offer over 50 per cent of Nigeria Air to strategic investors.

The proposed investment in the new airline would make Ethiopian Airlines technical partner in the nascent carrier, giving technical backing in terms of maintenance and other support services.

Ethiopian Airlines may emerge the preferred bidder in the new airline considering its relationship with Nigeria in the past, which has made government to offer it more frequencies and routes opportunities despite the Single African Air Transport Market (SAATM) policy, which the two nations are signatories to.

The airline saved Nigeria a huge shame when virtually all foreign airlines stopped operations to Abuja and declined to use Kaduna Airport as alternative airport when the country rehabilitated the Abuja airport runway.

Ethiopian Airlines currently flies to over 80 international destinations across five continents with over 200 daily flights.

Sources close to the Ministry of Transportation told Woleshadarenews that during the unveiling of the project last month at Farnborough Air Show in England, Minister of State for Aviation, Hadi Sirika, courted Ethiopian Airlines and Qatar Airways over interest in the new airline.

Meanwhile, the Federal Government has faulted the claim by the Ethiopian Airlines’ Chief Executive, Gebremariam, that the airline is the favourite to establish and manage the new ‘Nigeria Air’. Sirika faulted the claim through the Deputy Director, Media and Public Affairs, Mr. James Odaudu, on Tuesday in Abuja.

According to News Agency of Nigeria (NAN), Sirika said that even if Ethiopian Airlines had tendered an offer to be partner, it is preposterous and misleading for Ethiopian Airlines boss to make such a statement.

According to him, discussions are ongoing with prospective partners and investors ranging from development finance institutions, airlines and Original Equipment Manufacturers (OEMs). “And these discussions are not limited to the establishment of a national carrier.

“There are other components of the Aviation Roadmap for which investors are being sought.

“These include the Establishment of an MRO centre, cargo terminals, concession of airports, establishment of an Aviation Leasing Company etc.

“I don’t know about ET or any other prospective investors being favourites or frontrunners to establish and manage Nigeria Air,” he said.

Ethiopian Airlines boss last week said his airline is the frontrunner to set up and manage a new national carrier for Nigeria.

Former Commandant, Murtala Muhammed Airport, Lagos, Group Capt. John Ojikutu (Rtd), had cautioned Nigeria, saying no foreign airlines that are competitors to Nigeria on Bilateral Air Services Agreement (BASA) routes should be given technical partnership in the new carrier, otherwise, “we will end up the same way as we did with KLM and Kenya Airways in the 1990s.”

Wole Shadare