Nigeria Air

The establishment of Nigeria Air was to rectify the failures of the past in operations of national carriers by government and the private sector, former minister of Aviation, Hadi Sirika, has said.

Sirika said during an interaction with newsmen on Monday in Abuja that the administration of former President Muhammadu Buhari incorporated Nigeria Air as a private company.

“When we looked at past efforts to drive a national carrier by both the government and private sector, we saw that we need to initiate a different approach that will launch Nigeria into global reckoning.

“The idea was that we should have less of government investment to make it a purely business driven venture that will work effectively and efficiently and achieve world class standard.

“We therefore invited local and foreign investors with credible records to form part of the proposed national carrier. The shareholders of this airline went through due process before their selection,” he said.

Sirika pointed out that the display of the aeroplane that heralded the inauguration was a market strategy employed by the shareholders to launch the business in the minds of customers in Nigeria.

He said that every business venture has different strategy of making lasting impression on the minds of its different target audience, adding that no money was spent in doing that on May 26.

The former minister said that as an expert in aviation industry the estimated take off period of the Nigeria Air would be in the next three or four weeks.

Sirika decried the gullible nature of the public that consumes all stories without subjecting such to strenuous scepticism and caution.

“Nigerians need to have more faith in the government to encourage it carry out development programmes and projects that are beneficial to the populace.

“The general apathy and disbelieve in anything that government does must change,” he said.

The former minister gave an example of an encounter with a Kenyan who chose to have strong belief in government policy even though she did not vote for it during election.

“I asked the lady why she was still driving taxi long after hours and she replied that it was because government had asked everyone to put in an extra one hour in order to improve the economy.

“She said even though she didn’t vote for the party in power, she had to believe them because they are the government in power and will take the right step in the interest of its citizen.”

Industry experts say starting an airline is tough and running a profitable one even tougher.

They listed some requirements for establishing an airline to include obtaining air transport licence, airline operating permit, air operator certificate, and foreign carrier operating permit.

It also requires registering an aircraft, aerodrome certification and air transport licence.

Nigeria Air has an ownership structure of 49 per cent held by Ethiopian Airlines, 46 per cent by Nigerian private investors, including SAHCO, MRS and other institutional investors, and five per cent by the Federal Government.

The airline was unveiled three days before the end of the Buhari administration.

Mr Hadi irika, the former Minister of Aviation and Aerospace, has said that N3 billion out of the budget of N5 billion had so far been released by the Federal Government for the establishment of Nigeria Air.

The N3 billion, he explained had been completely spent.

Sirika who was guest on Sunday in Abuja during a programme on Arise TV, said that  from 2016 to 2023, the budget for the Nigeria Air is N5 billion, and only N3 billion was released.

The N3 billion, he said had not been completely spent.

He said the government of Nigeria did not pay a dime for the May 26 unveiling of Nigeria Air.

“It is ridiculous to think that we’ll hire and paint an aircraft for N138 billion which could get us five new Boeing 777max.

“We are responsible people and the general public should approach Ministry of Information and apply for the right of information to see for themselves.

Sirika admitted that the aircraft used for the launch of Nigerian Air belonged to Ethiopian Airline, but added that government did not pay for the aircraft as it was brought by Ethiopian Airlines to demonstrate their commitment to the project.

“The AOC owned by Ethiopian Airline is known to Nigeria and the NCAA, they are permitted to come in either with scheduled passengers, chattered or cargo. They have to come in under one of the 3.

“So, they came as chartered. Being chartered does not mean that anybody paid for anything. The government did not pay a dime for that aircraft to come in. 

“Secondly, there was no revenue passenger in the aircraft because that would have been totally against the law and wouldn’t have been allowed. It was their own marketing strategy as equity partners.

“They came to do this unveiling on a special allowance called chartered and it does not mean that we paid for it.

“It is their own marketing strategy as equity partners that they came to do this unveiling on a special allowance which is called chartered flight.

“Chartered does not mean they paid for it. If there is anybody that paid for it, it would have been the Ethiopian Airline. No penny is paid,” Sirika said.

According to him, former President Olusegun Obasanjo handed Nigeria Airways to his friend company, Arik Air, which is indebted to the tune of over N300 billion, of which Nigeria taxpayers money is N250 billion via AMCON.

“So, do we hand it over to Arik?” he asked, rhetorically.

Ethiopia Airlines was the preferred bidder and holds 49 percent shares in Nigeria Air while Nigerian government owns just 5 percent and the remaining private.

The Infrastructure Concession Regulatory Commission (ICRC) says Air Nigeria will begin to convey Nigerians before the end of President Muhammad Buhari’s administration.

Acting Director-General (I-G) of the commission, Mr Michael Ohiani, said in Abuja on Sunday, that the ICRC was now working round the clock to get it operational.

Ohiani said that ICRC was working closely with the Ministry of Aviation, adding that a new presidential approval had just been given that would advance the process.

The ICRC boss who did not give details of the approvals, assured that the process would be moving to the next stage by the end of February.

“I want to assure the Nigerian public that we are working round the clock to get it operational. We are working with the Ministry of Aviation and we have just gotten a presidential approval.

“We will get the concessionaire, once we have gotten the concessionaire which is a major step, the issue of operation will now follow.

“I can assure you that before the end of this administration, Air Nigeria will start flying,” he said.

The Federal Executive Council (FEC) in November 2021, gave an approval for the commencement of processes to inaugurate the nation’s air carrier, Air Nigeria.

The Minister of Aviation, Hadi Sirika who at that time briefed newsmen, announced April 2022 as the effective date for the take-off.

Sirika had also said that 49 per cent of the Nigeria Air project would be owned by strategic equity partners, 46 per cent by Nigerians while the Federal Government wound five per cent of the shares.

In a related development, the ICRC acting D-G said that plans were ongoing for the establishment of six cargo agro airports in the six geo political zones.

Ohiani said that the cargo airports were part of the commitment of the present administration to boost agriculture, adding that the airport would boost transportation of produce within and outside Nigeria.

He hinted that the cargo airport project was still in its development stage.

Ohiani added that a lot of efforts were being made in the aviation industry to achieve the Presidential Aviation Road Map.

For the concession of terminal operations at the four International Airports, the ICRC boss said that the commission and its partners were currently procuring companies that would operate the terminals.

“Apart from that we have what we call MRO, which is the development of a Maintenance, Repairs and Overhaul facilities

“As we speak, an investor has emerged in respect of that and so we are trying to finalise.

“We also have the establishment of the Aviation Leasing Company.

“Experience has shown that for you to have a sustainable aviation industry, you have to have a leasing company so that the operators can easily acquire fleets of planes,” he said.

Ohiani assured that the commission was already concluding plans to go to the Federal Executive Council (FEC) for approval to concession the establishment of the leasing company.

ICRC was established to regulate PPP endeavours of the Federal Government aimed at addressing Nigeria’s physical infrastructure deficit which hampers economic development.

Nigeria Air, the national carrier approved by Federal Executive Council (FEC) to start operations in April 2022 in replacement of Nigeria Airways that was liquidated 18 years ago, is to take-off with three planes.

The planes are under the wet lease from Europe, Mr Tilmann Gabriel, the Transaction Adviser on National Carrier, said on Thursday in Abuja at a briefing on proposed national carrier.

Nigeria’a aviation minister Hadi Sirika on announced on November 24, 2021 that the FEC approved the take-off of the new airline after a failed attempt in 2018 to float the national carrier.

Gabriel said that as an expert who has been a part of many start-up airlines across the world, the leased policy is the easier and cost-effective way to start an airline.

He also said it is global best practice and even in Nigeria, some airlines have started airlines with leased aircraft.

Gabriel, a flight Captain, said that the leasing option is the best now because with COVID-19, leasing companies have aircraft and crew idle and Nigeria will get a good bargain at this time.

He said the conversations with lessors in Europe had begun.

“We are taking to leasing companies but at the same time, we are ordering for new aircraft. With the wet lease, the lessor will provide the aircraft, crew, maintenance, and insurance. This will also reduce the rigor of certifications that come with unregistered,” he said.

Nigeria is floating the carrier 18 years after Nigeria Airways, the West African nation’s national carrier, was liquidated due to inefficiency and debt.

Nigeria’s Federal Executive Council (FEC) at a meeting presided over by President Muhammadu Buhari on Wednesday approved much-awaited “Nigeria Air’’ which aviation minister Hadi Sirika has been structuring since 2015. 

Mr Sirika explained that the name, “Nigeria Air’’ and the logo were approved in July 2018 in the United Kingdom at the Farnborough Air show,

According to him, majority shares of 49 per cent of the Nigeria Air project will be owned by strategic equity partners, 46 per cent by Nigerians while the Federal Government will own five per cent of the shares. 

“The structure of the proposed airline – Federal Government would be owing not more than five per cent. So, five per cent is the maximum equity that government would take. 

“Then, 46 per cent would be owned by Nigerian entrepreneurs. So, if you add that is 51 per cent. So 51 percent majority shareholding is by Nigerians. 

“And then, 49 per cent will be held by strategic equity partners or partners will be sourced during the procurement phase, which is the next phase.’’ 

The minister revealed that the Nigeria Air, when operational, would generate over 70,000 jobs, saying “these 70,000 jobs, they are higher than the total number of civil servants that we have in the country’’. 

The defunct Nigeria Airways collapsed leaving 78 planes that have dilapidated; a huge debt of more than S528 million.

Nigeria Airways, was founded in 1958 after the dissolution of West African Airways Corporation and held the name WAAC Nigeria until 1971, when it was rebranded to the name it had until it ceased operations in 2003. 

Nigeria Airways was one of the “positive legacies” of British colonial administration and contributed immensely to the nation’s economy unit it died in 2003.