Nigeria Air: FG Stake Worth $12.5 Million

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CEM REPORT, AVIATION | The 5 percent investment stake as start-up funding of the Federal Government in the national carrier, Nigeria Air, is worth $12.5 million.

This was revealed by a Transaction Adviser to the project, Tilmann Gabriel.

He noted that with the total investment sum, the airline had a solid financial foundation.

He added that Nigeria Air has the strategic direction, with a solid business plan for the next 10 years with a total start-up budget of $250 million, Nairametrics reports.

He further mentioned that Nigeria Air was ready to launch with a fleet of Boeing 737 for domestic services, adding that the carrier was currently recruiting many Nigerian aviation professionals to help start the airline operation.

“The Operations Control Centre at the Abuja Airport is ready to be opened with the most modern IT systems. The booking engines on the airline website and App will be available shortly with loyalty credit cards and other innovative pay systems.

“The immediate goal is to introduce all up-to-date customer service systems to make flying a pleasurable and easy-to-use enjoyment. Nigeria Air will be a new competitor in the Nigerian market, adding to the existing airlines.

“In short, the new year 2023 will have added choices for domestic flights for all customers, soon also on the regional and international markets.”

On the objection by the Airline Operators of Nigeria (AON) to Ethiopian shareholding of 49 percent in Nigeria Air, alleging that it would lead to job loss in the country.

Gabriel insisted that the process leading to the formation of the airline had been transparent, unlike the claim by some stakeholders in the sector, especially the Airline Operators of Nigeria (AON).

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He stressed that the government had ensured a clear ownership structure for the airline under the Public Private Partnership (PPP).

The case is scheduled to come up at the Federal High Court Lagos Division next Monday, January 16, 2023.

Gabriel further disclosed that the Air Operators’ Certificate (AOC) for Nigeria Air had reached phase three of the exercise, out of the five phases an intending operator is expected to go through, assuring that the airline would be issued the certificate by Nigeria Civil Aviation Authority (NCAA), which would enable it to operate as a scheduled operator.

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