The national carrier project has continued to suffer one setback or another from one successive Minister to another.
History has shown that the attempt by the last administration with Hadi Sirika as aviation minister was not the first time the Government tried to set up a national carrier but failed.
Power play, government intervention, lack of management and unhealthy competition, amongst others, have been identified as reasons the other Government failed to set up and run a successful national carrier.
Proposed national carriers that have fallen include Nigerian Airways, Air Nigeria, NewCo, Nigerian Global, Nigerian Eagle, Virgin Nigeria, Air Nigeria, Nigerian Eagle and Nigeria One.
Hadi Sirika unveiled Nigeria Air as its new national carrier at the Farnborough air show in the U.K. Nigerians thought it was a reawakened hope for the country as they followed the step-to-step processes of the Government in setting up the long-awaited national carrier.
However, the hopes of many were dashed a few hours after Hadi Sirika, the former Minister of aviation, had made a static display of what was supposed to be the resurrected Nigerian carrier, Nigeria Air.
A few hours after Nigerians had celebrated the arrival of the aircraft, videos, evidence, and pictures started to trickle in on the said aircraft used for the static display, which happens to be ‘borrowed’ from Ethiopian Airlines.
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Nigerians who were taken aback at this display of what they described as ‘fraud’ wondered why a government would go as far as deceiving its citizens of floating a non-exiting airline.
In 2015, when Sirika was appointed Minister of Aviation, he had put forward an aviation roadmap with National carrier as the queen project, which he promised must be delivered to the Nigerian people before former President Muhammadu Buhari’s administration winds up.
Before and after the carrier’s launch, the prospective airline continued to gulp vast sums of money despite not acquiring a single aircraft.
However, stakeholders in the aviation sector believe that all hope may not be lost for Nigeria Air. They say the carrier can commence seamlessly if Festus Keyamo, the newly sworn-in Minister of Aviation and Aerospace Development, is transparent with the processes and ensures the project has all Nigerians’ interests at heart.
They also suggest that the Nigerian Government can empower and support existing carriers as flag carriers to fly the country’s flag worldwide proudly.
Seyi Adewale, an aviation analyst and chief executive officer of Mainstream Cargo Limited, told BusinessDay that the new aviation minister must review all contracts relating to Nigeria Air with the primary goal of seeking all the ‘loopholes’ therein and explore these for potential revision or cancellation in our National Interest.
Adewale said the Minister needs to rebuild trust and confidence with its Ministries, Departments and Agencies (or parastatals), the general public, unions, interest groups and other industry stakeholders because genuine efforts could be sabotaged without this.
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He said that based on Nigeria’s level of development, regional sentiments, and ethnic fault lines, it’s better to adopt the National Carrier model.
He explained that while the project may be tweaked so that existing domestic airline promoters can effectively participate, private investors can buy equity via firm monetary contributions for working capital, asset acquisition, etc.
Adewale said the Minister may need to invite the general public to buy into it via an Initial public offering.
“I’m particularly attracted to the British Rail model aftermath of the UK nationalization project that became successful over a very long period before its eventual privatization.
“Firstly, the Minister ought to be transparent, avoid sycophants, listen to critics, and genuinely work in the nation’s best interest.
“He has to consult widely with industry professionals and critical stakeholders such as Airline Operators of Nigeria (AON) before deciding any definite course of action. The terms and conditions of any bidding process must be followed strictly, and other ethical considerations,” he added.
Sindy Foster, principal managing partner, Avaero Capital Partners, told BusinessDay that it is not difficult to stop the project since the court still has not dealt with the outstanding issues addressed by AON, the Nigeria Civil Aviation Authority (NCAA) has not issued an AOC and no agreements have been signed with shareholders, including Ethiopian Airlines, (unless they have breached the subsisting court order).
Foster explained that there are real issues with the agreement that the former Minister has approved, which fundamentally disadvantages Nigeria and Nigerian aviation and will disadvantage passengers when the country has a monopoly situation in Nigeria.
She said the Minister needs to relook at the structure of the airline in terms of financial contribution from Nigeria; majority share ownership, share purchase agreement, and the management contract proposed by Ethiopian Airlines.
“Currently, the ‘national carrier’, primarily benefiting private investors, will prevent Nigeria from launching another ‘National Carrier’ for 15 years. However, in recent reports, Ethiopian Airlines refers to the airline as a flag carrier.
“So we need to clarify what Nigeria Air will be (if it is to go ahead) and decide how many flag carriers or designated airlines Nigeria will need before we prevent this opportunity because of the Nigeria Air agreement for 15 years. There will be times when the interests of Ethiopia and Nigeria diverge, so if Nigeria Air is to be a National Carrier, it must operate in Nigeria’s interest at all times,” she explained.
According to Foster, Nigeria needs a National Carrier operated in Nigeria’s interest but with private, professional management (just like the relationship between Ethiopian Airlines and the Ethiopian Government). With no government interference but full government support.
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She said the Nigerian domestic market is the largest domestic market in Africa and will continue to grow, adding that Nigeria needs to continue to nurture the domestic market and utilise the multiple Bilateral Air Service Agreements.
According to her, allowing the national carrier to create a predatory domestic pricing strategy to put other airlines out of business will not benefit passengers or Nigeria. “Many people will lose their jobs, and existing investors will lose their investments. Fair competition should be encouraged. Let the national carrier operate the regional and international routes, increasing connectivity within Africa,” she said.
Alex Nwuba, CEO of Ghana-based Smile Aviation and former CEO of Nigerian-based Associated Airlines, suggested that a mix will be most appropriate in which Nigerians collectively own one airline, the national carrier focused on long haul operations while supporting existing pages to meet most of our regional needs and the domestic feeder.
Nwuba said Hadi Sirika’s biggest mistake was not putting Nigeria first, protecting and growing the private sector operators, enhancing their business operations, and supporting growth.
He said instead, he wanted to incubate a structure that would decimate the airline industry without expanding aviation generally.
“The Minister needs a surgical examination of the aviation industry, not just airlines; he needs a team that understands the industry to guide his decision-making and strategic focus.
“The biggest mistake to avoid is listening to his inner voice rather than the wisdom of the industry,” he added.
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