Nigeria Air: Lawmakers, AON Furious over Choice of Ethiopian Airline as Preferred Bidder

* Say with just 5% equity, FG mortgaging national interest to Ethiopia

*Deals good for Africa, minister insists 

Udora Orizu in Abuja

Members of the House of Representatives Committee on Aviation and the Airline Operators of Nigeria (AON) yesterday expressed displeasure over the federal government’s choice of Ethiopian Airline as the preferred bidder and the five percent equity allotted to Nigeria in the proposed national carrier, Nigeria Air.
The lawmakers and AON expressed their displeasure during an interactive meeting the House held with Minister of Aviation, Hadi Sirika, and other stakeholders in the aviation sector on the proposed Nigeria Air.

The federal government had last month announced Ethiopian Airline as the preferred bidder for the proposed airline.
The Minister, Sirika had said the national carrier would be launched with Boeing 737-800 (NG) aircraft, followed thereafter with B787 aircraft for international operations.

Addressing the lawmakers, Sirika said the country has five percent equity, while investors have 46 per cent share, with 41 percent share for Ethiopian Air.
He stressed that Ethiopia is the second most populous country in Africa, with 120 million citizens while Nigeria is the most populous with 250 million, hence connecting the market, with a combination of the two countries is good for Africa.

While disclosing that all international airports across the country have been declared as free zone as part of ongoing efforts to attract investors, both and local and foreign direct investment, the Minister said President Muhammadu Buhari had given marching order to the ministry to conclude the process for the launch of the National Carrier by December, 2022.

Sirika said, “In the next six weeks, we will have the full business case. For now, it is not Ethiopian Airline only. It is an Ethiopian Airline consortium. It is the structure that the business case has recommended; that there should be five per cent for government.
“That it should be 46 per cent for Nigeria entrepreneurs and the remaining international partners. And this partner in this case happens to be the consortium by Ethiopian Airline.

“Ethiopia may seem to be competitors to us. But they are partners. They are no longer competitors. Nigeria deserves a very strong, visible efficient airline. Partnership in international civil aviation is not new. Airlines can buy shares in one airlines or the other. It is not new; it is the norm. So are also alliances.”
But in his response, the Chairman of the Committee on Aviation, Hon. Nnolim Nnaji, was of the view that the shares allotted to Nigeria was tantamount to mortgaging the interest of the country to Ethiopia.

According to him, “You are mortgaging our national interest to Ethiopia. That is why we invited you as a parliament. You can’t tell us that we are coming together. Coming together with what?

“When you talk about alliance you are talking about countries bringing in their interest to form alliance. Honourable minister, let me explain to you, it is very simple. You are selling our rights.

“I wonder how another country’s airline that will come and manage our airline will make Nigeria an aviation hub. It is very difficult. Ethiopian Airline cannot make Nigeria an aviation hub. Ethiopian Airline is coming to take what we have and we are talking about repatriation of fund, this is where we will see blocked funds.
“You are an aviator, frankly speaking we expect something better from you. We don’t have problem with setting up a national carrier. You know we don’t have problem. But we are thinking that the direction we are going is very difficult.

“We are concerned about the interest of Nigeria. The traffic belongs to Nigeria, that we are not doing well today does not mean we can’t do well tomorrow. We cannot offload our BASA to a small country like Ethiopia and Ethiopia will be running our airline for us.
“How do you think tomorrow we can be better when Ethiopia has taken the industry. They will bring all the planes that they are not using to Nigeria. We are concerned about the future. Once they take it we are completely off.”

Corroborating the lawmakers’ assertions, the Vice President of AON, Allen Onyema opined that the manner Ethiopia was coming into the arrangement for Nigeria Air could cause existential problems for local airlines.

According to him, there was need to carry domestic airlines along in the process.
He said if the kind of support given to international operators were extended to local operators, they would do better, adding that local airlines don’t want Ethiopian Airline to come in and ravage the country.

On his part, Captain Roland Iyayi of AON said, “Many issues have not been addressed by this proposition. These issues must be addressed to be of benefit to Nigerians. There is need to have a structure that takes the interest of the country and domestic airlines. Domestic airlines can be equipped to become national carriers. The operations of the Nigeria Air could stifle domestic operators if not properly managed.”