Nigeria Relaunches National Airline project
In July 2018, Nigeria announced with great fanfare the imminent launch of its new airline called "Nigeria Air". In September of the same year, the Federal Executive Council decided to suspend the project.
3 years later, the state dusted off the issue by now opting for a new shareholding model.
The project to create Nigeria Air is back on track after the country has been orphaned by a national airline since 2003. According to a document on the updated status of the government's aviation roadmap, viewed by the economic magazine Nigerian Economic Confidential, this Wednesday, May 5, the development phase of the project is completed, with the conclusion of its business case, and the subsequent issuance of a certificate of compliance by the Commission for the Regulation of Infrastructure Concessions. Next set of steps will involve the start of the procurement phase, placing a qualifying request advertisement in domestic dailies and foreign media.
The private sector consortium can include reputable international airlines (such as Qantas), leasing companies, equipment manufacturers (OEMs), financial and institutional investors,”the document said. These private partners, who will hold 95% of the capital of the new parastatal airline (against 5% for the state), must raise 250 million dollars (102.75 billion naira) for its launch. The state will take care of the allocation of routes (through its air service agreements), the provision of financial guarantees and tax incentives to support the success of the future business. Nigeria suspended the project to create Nigeria Air in September 2018. The launch of its operations was however scheduled for December of the same year. In July, Aviation Minister Hadi Sirika revealed the carrier's name, colors and slogan ("Bringing Nigeria closer to the world").
Five planes including Airbus A330s and Boeing 737s are expected to serve as a launch fleet with a target of 30 aircraft within the next five years. The carrier plans to have 81 routes, including 40 national, regional and sub-regional lines and 41 international routes. According to Minister Hadi Sirika, the country's national aviation policy also provides for the establishment of a maintenance, repair and overhaul (MRO) center; an aircraft leasing company; an efficient search and rescue service; and an aerospace university with the support of the International Civil Aviation Organization (ICAO).
