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The Minister of Aviation, Hadi Siriki, recently announced that the Federal Government will float a new national carrier, the Nigeria Air. The development came three years after President Muhammadu Buhari first mooted the idea of a new national carrier and nine years after former Minister of Aviation, Stella Oduah, disclosed of a similar plan by the administration of Dr. Goodluck Jonathan. While earlier plans by successive administrations to float a national carrier failed, we hope that the present one will not be aborted.
Instructively, the minister has given assurance that the proposed Nigeria Air will take off in April 2022. Under the new arrangement, the government will reportedly have five per cent equity in the new carrier, while Nigerians and unnamed investor will hold 46 and 49 per cent ownership stakes, respectively. According to the minister, the Federal Government will not be involved in the running or deciding who runs the new national carrier. He was optimistic that Nigeria will have an efficient national carrier that will be a global player in line with international safety norms. He promised adequate government’s support with viability gap funding in a public partnership arrangement that will deliver optimum service. The minister also explained that the government had learnt necessary lessons from the experience of the defunct Nigeria Airways, which had about 30 aircraft in its fleet at the height of its operations, but depleted to only two aircraft at the time of its liquidation in 2003. Playing the employment card, the minister also claimed that the proposed national carrier will create about 70,000 jobs for Nigerians.
Undoubtedly, the plan to have a functional and efficient national carrier is good. Apart from enhancing our national pride, it can boost tourism and economic development if it is adequately managed as a business concern. The new national carrier will also benefit from bilateral air transportation agreement, including several Bilateral Aviation Safety Agreement (BASA) and ‘Open Skies’ policy agreement that favour national carriers. Due to absence of a national carrier, two privately owned airlines were designated as national carriers for the purpose of leveraging on the BASA and other international aviation deals and policies.
In spite of its advantages, the timing of the new national carrier is wrong. We cannot vouch for the sincerity and commitment of the government on the project. We doubt that the government has made adequate preparation for the commencement of the national carrier. We think that such a capital-intensive venture requires good planning before it takes off. Has the government put in place the necessary facilities for the smooth takeoff of the new airline? Has it been registered with the Corporate Affairs Commission (CAC) and other relevant agencies?
While we are not opposed to the establishment of a new national carrier, there is need for due process and transparency in the exercise. The usual fire brigade approach to issues of national importance should be avoided. According to aviation experts, a period of not less than 12 months is the minimum requirement to register an airline. This period will be enough to put certain requirements in place before the airline commences operations. The public is yet to see the advertisement of the proposed national carrier in the media, which according to the relevant laws, should run for 28 days in local and international media. In the absence of these guidelines, the takeoff date of the proposed national carrier is not feasible.
Even the employment target of 70,000 appears very unrealistic. For example, figures sourced from recognised airlines such as American Airlines, the biggest in North America, show that it has 102,000 employees, Emirate Airlines, which is International Air Transport Association(IATA’s) largest airline, has 45,000 staff, while British Airways with 40 million passengers annually, with a fleet of 280 aircraft, has 40,000 employees. Having a large air travelling population like Nigeria is no guarantee that floating a national carrier will be a success. Ethiopian Airlines and Kenya Airlines, are two small African countries, with less than 20 per cent of Nigeria’s population, but are running enviable aviation brands. Let the promoters of the new national carrier tarry a while and put adequate measures in place before floating the airline. Alternatively, the government can only give the guidelines and allow private operators come up with an efficient national carrier. A national carrier is not always run by government officials.
Floating a national carrier should not be a priority of the government now. We still need to understudy the things that have made other national carriers to excel. We believe that the government should provide the enabling environment for the aviation sector to thrive. For now, let our airports be well-equipped with modern navigational instruments in line with International Civil Aviation Organisation (ICAO) regulations.
