Mesfin Tasew, the Group Chief Executive Officer of Ethiopian Airlines, has said that the East African carrier never had any plan to set up an airline in Nigeria but was invited by the federal government to partner with it to establish a national carrier, Nigeria Air.
Tasew who spoke to selected journalists from Nigeria in Addis Ababa on Wednesday disclosed that because of the pedigree of Ethiopian Airlines, it was invited by the federal government to help it set up a national carrier in a partnership arrangement and because of the airline’s engagements it at first resisted the invitation but later agreed due to long relationship it has with Nigeria.
But while Ethiopian Airlines and the Nigerian government were preparing the shareholding, it received message that some companies and airlines in Nigeria were defaming Ethiopian Airlines and the federal government and had gone to court and obtained a court order to stop the establishment of Nigeria Air. This prompted Ethiopian Airlines to want to withdraw, but the Nigerian government insisted that it should continue the process of establishing the national carrier for the most populous nation in Africa.
The Group Chief Executive Officer of Ethiopian Airlines said that until now the airline has not decided whether to continue the process to establish Nigeria Air but the federal government said it should continue with the groundwork until the court vacates the order and it addressed some concerns, insisting that it was not cancelling the project.
Tasew emphasized that Nigeria Air was already established before Ethiopian Airlines was invited to partner with it.
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He also noted that Nigerians will benefit hugely from the national carrier if eventually it is established because the federal government said that Nigeria does not have dependable airlines in the domestic and international market.
This, he said, has led to foreign airlines charging high fares on the Nigerian route and exploiting Nigerian travellers; so, government wanted strong, dependable airline with capacity, remarking that if the national carrier is established, it will help existing airlines to improve their operational standard to compete effectively in the market to the benefit of air travellers in the country.
Tasew said, “Ethiopian Airlines didn’t have any intention or plan to setup an airline in Nigeria. In May, of 2022, when I took my current responsibility (as Group CEO), a request came from the Nigerian government asking ET (Ethiopian Airlines) to participate in a bid and help the Nigerian government to setup a Nigerian flag carrier. It came in writing.
“Initially we didn’t want to go into that. We said we have other initiatives in other countries and we were busy. But the Nigerian government insisted that Ethiopian Airlines is an African airline, it has to help the Nigerian government in setting up the national carrier. So, we had to respect them.
“We serve the Nigerian public and government by flying to four cities in Nigeria; we couldn’t say no, we cannot come and help you. So, we had to submit proposal, we had to respect the Nigerian government.
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“And we thought that the Nigerian government had choices, ET being one; because they had also requested other airlines in the Middle East, Europe to participate in the bid. I don’t know whether they participated or not. We submitted our proposal and we received a letter from the Ministry of Aviation, saying that Ethiopian Airlines has been selected to be a partner to setup the airline,” Tasew explained.
He further explained that then the Nigerian government wanted the structure of investors to be Nigerian investing institutions and the Nigerian government wanted only five percent shares to ensure that they have presence in the airline and to facilitate the establishment of the airline.
“We had a lot of discussions, we agreed but we had some differences in some points. And while we were preparing the shareholder agreement, then we heard that some companies in Nigeria including airlines started defaming and objecting the establishment of the airline and defaming the name of the government and Ethiopian Airlines.
“At that time, we thought that if the Nigerian government doesn’t want it, the Nigerian public doesn’t want it, we could as well withdraw. But the Nigerian government insisted that no, that this is a strategic issue for Nigeria and we have to continue.
“When these group of people went to court, and brought a court order, we had to defend ourselves, we had to go to the court, together with the Nigerian government, including the Ministry of Transport.
“We had to defend ourselves. So, until now, it is not yet decided, as far as we know, it is under the court. But the Nigerian government insisted that we had to continue the background work until the court case gets decision,” he said.
