With Agency Report
The new national airline, Nigeria Air, which name was unveiled Wednesday amidst protest by some people, will need initial capital of between $150m and $300m, even as the Federal Government shops for a strategic partner to operate the carrier, Reuter reports.
The Minister of State for Aviation, Hadi Sirika, on Wednesday revealed that the initial capital will be invested in tranches over a period of time, while assuring that the Federal government would have only about five per cent of the shares of the new airline.
He made the comments at the Farnborough air show in London, England, pointing out that the government plans to make good its promise of launching the airline in December.
The airline, according to Sariki, plans to start its operations with at least fifteen leased aircraft, adding that the government was already talking with Boeing Co and Airbus SE for the purchase of new aircraft.
Nigeria Air will serve domestic and international markets, and is expected to have a fleet of 30 aircraft in five years with hubs in Lagos and Abuja.
The government said a majority stake could be available to an overseas backer as it seeks know-how and cash to help the start-up avoid the fate of former flag carriers.
To this end, the government has opened talks with interested foreign airlines. Sirika held talks at the expo with the chiefs of Ethiopian Airlines Enterprise, Africa’s biggest carrier, and Qatar Airways, which holds a stake in British Airways owner, IAG SA.
Meanwhile, mixed reactions have continued to trail the unveiling of the new national carrier, as some stakeholders have condemned the timing of the new airline, while others have commended the move, noting that there was need for a national carrier.
The News Agency of Nigeria (NAN) reports that Mr Sirika had unveiled the name of the new carrier as “Nigeria Air’’ with a logo encompassing the flowing green, white and green ribbon at the Farnborough Air Show in London.
The carrier, scheduled to begin operations by December, will replace the defunct Nigerian Airways which was liquidated in 2003 by the then President Olusegun Obasanjo administration.
Illitrus Ahmadu, President, Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), said the move showed that the government was committed to the national carrier project.
Mr Ahmadu said that Nigeria needed a carrier since no Nigerian airline was flying more than four to six hours.
“As we speak, no airline is going to South Africa, North Africa, East Africa, not to talk of Europe and North America.
“There is none since Arik Air and Medview suspended their international operations.
“For me, it is a welcome development and I just pray that whatever model the government is adopting will be to the good of the industry,’’ he said.
According to him, the new national carrier, apart from filling the gap created by other domestic airlines, will also provide employment opportunities for Nigerians in the sector.
Mr Ahmadu said: “It is going to provide jobs for pilots, engineers, cabin crews, and it will even up the business of the handling companies, the aviation catering companies, just to mention a few.
“It will also contribute to the Gross Domestic Product from the aviation sector.
“As you know, the bulk of the industry’s revenue comes from the foreign airlines and the aviation agencies such as the Federal Airports Authority of Nigeria, Nigerian Airspace Management Agency and the Nigerian Civil Aviation Authority.’’
However, the President of the Aviation Round Table (ART), Gbenga Olowo, in a statement, said that there was need to know the procedures and processes being used in bringing back the new national carrier.
According to him, ART has given its recommendations to the government on the way forward since Sept. 2015.