Industry experts and operators say that despite government’s drive to establish a national aviation carrier in December 2018, they are still oblivious of the directions and plans in place to accomplish this.
The experts say that, though Hadi Sirika, Minister of State for Aviation, has promised that the project will be private sector-led and driven, it is only expected that by now, there should have been a clear direction on how government intends to run the project and the airlines it intends to partner with.
A national carrier is a transportation company, such as an airline that, being locally registered in a given state, enjoys preferential rights or privileges accorded by the government for international operations.
Nogie Meggison, Chairman of Airline Operators of Nigeria (AON), said airline operators are at a loss as to the relevance and need of a National Carrier at this time.
Meggison said, “Whilst we are not averse to the government providing a conducive operating business environment and a level playing field for the establishment of a private sector driven flag carrier, the idea of using tax payers money to float a “National Carrier” in 2018 is not only counterproductive, but inimical to the overall interests of the present corps of private entrepreneurs.
“In the overall scheme of things a ‘National Carrier’ can only result in a huge distortion to the current market and will be a huge drainpipe to government’s treasury.”
Meggison therefore urged the Federal Government to provide clarity on the agenda, whether it is for job creation or for profit, as well as steps being taken in the establishment of this “National Carrier”, especially when viewed against the background that the Sirika has indicated that this airline will commence operations on December 24, 2018.
He explained that the former model where 80 percent of the airlines in Europe were government owned airlines, is no longer practicable worldwide, adding that today, 98 percent of the airlines have been privatised.
“I have no clue on who the government is partnering with and how they want to do it. All I know is that the government says the carrier will be private sector driven and government will have very minimal participation, about three percent,”Ikechi Uko, aviation expert and Nigerian travel business consultant said.
Uko said there is a need for a national carrier but it should be in partnership with some of the local carriers that already exist, so that they can learn from their experiences. He added that the process should transparent.
“I think we should take into consideration the already existing domestic airlines. The National Carrier will help pull the resources of the domestic airlines, especially now that they are struggling with depleting fleets.
“Individually, they are weak but collectively, they can do well as a national carrier. Ethiopian Airlines is a national carrier, when you compete globally. They bring out something that will serve the interest of the country,” he added.
A UK-based Airline Management Group, an airline group with keen strengths in start-up carriers as well as Aviation International and Tianerro FZE was appointed by the Federal Government as transaction advisers for the national carrier.
According to Sirika, the transaction advisers will be liaising with the project delivery team to ensure it all comes to fruition in record time. He further stated that all the transaction advisers except for the National Carrier were engaged in May 2017 and have a nine-month contract.
BusinessDay checks show that Star Alliance is a global airline of competing airlines and are interlining for the benefit of the nation. Five airlines created Star Alliance as the first global aviation alliance back in 1997.
Experts also say the government should leverage on the experience from the glory of the defunct Nigerian Airways and Ethiopian Airlines to set up a standard and efficient carrier.
A source close to the sector said he is not aware of government’s plans and strategies to adopt in setting up a national carrier but the idea was a good one, given the size of the nation, its huge population and the mobility of Nigerians, there is sufficient ground to argue for a national carrier.
The source noted that at present, the country loses so much money to foreign airliners because there is no national carrier with adequate network of routes or the capacity to operate extensively on many of the premium lucrative routes.
He explained that for a national carrier to be effective, government must learn from mistakes made by Nigeria Airways, some of which include mismanagement, interference, corruption and lack of transparency.
He recalled that at its peak, the then national carrier, Nigeria Airways, had over 30 aircraft in its fleet. But by the time it was eventually liquidated in 2003 by the Olusegun Obasanjo administration with barely two aircraft, it had become a huge liability, an object of national shame and international ridicule. Some of the aircraft were seized abroad at will because of indebtedness and salaries were hardly paid.
IFEOMA OKEKE
