Louis Ibah
There have been strong indications lately that the Federal Government may re-launch the national carrier, Air Nigeria, project which it suspended in September 2018 due to the inability to attract reputable technical partners and core investor.
Very competent industry sources told Daily Sun that government’s decision to re-start the project before the end of December, 2019, is “however creating discontent in the industry.”
It was learnt that the Federal Executive Council (FEC) that suspended the project had in two of its meetings since the re-election of President Buhari for a second term, made the issue the focus of its deliberations, including all abandoned, suspended, and uncompleted projects.
“There is also growing discontent over state funding of a national carrier, amid budgetary constraints, the country is grappling with a lot of infrastructure and security challenges requiring massive deployment of funds, and a national carrier is not seen by many as a priority,”said the source.
“Different countries are adopting airline ownership and management options that are making way for more private sector involvement, and the resolve of Nigerian government to go ahead with controversial national carrier project with 5 per cent equity appears not in sync with the contemporary trends,” added the source.
Passengers’ views
Although aviation and finance experts have queried the rationale for the Buhari’s led-government moves to invest in a national carrier at a time that economy was in dire strait, Nigerian air travellers are however excited with the idea and can’t wait any longer to see it materialise.
At the domestic terminal of the Murtala Muhammed Airport, Lagos, some passengers told Daily Sun, that those opposed to the establishment of a national carrier were yet to proffer logical and convincing argument to support their position.
“There is no argument that can convince Nigerians not to have their national airline,” said Isreal Esom, a passenger who spoke to Daily Sun at the Lagos airport.
“I need that competition against foreign airlines dominating most routes into Nigeria, to return our lost pride, the affordable airfares, the respect, and the options that come with a national carrier,” said Esom.
Ngozi Nze, a local travel agent also supported the idea of floating a national carrier, citing recent abuses of Nigerian passengers and travel agents by foreign carriers as reasons.
“Foreign airlines are now selling more tickets through overseas outlets to Nigerians, and this is running a lot of travel agents in Nigeria out of business. We need a strong government -backed airline on lucrative routes to Europe and America to create jobs for local travel agents,”she said.
Nze, said the entry of local airline like Air Peace into regional and foreign routes, has no doubt, improved the fortunes of local travel agents, and suggested that to assuage the fears of local operators, the government should create the right policy environment to enable private and national carriers mutually co-exit.
“There is no overstating the fact that in recent years, private airline operators have stepped up their game, and have contributed significantly in filling the gap created by the defunct Nigerian Airways. Everyone is excited about what Air Peace did in evacuating stranded Nigerians from South Africa recently. Therefore government should create a win-win formula for both the national and local carriers to thrive,” Nze said.
Accessing affordable fuel
Nze, said in the last one month, local airlines have complained bitterly their inability to source cheap fuel for their operations within and outside the country, amid soaring ticket cost.
Aviation fuel commonly called Jet A1, accounts for about 40 per cent of operational cost for airlines. Recently, the pump price of the product rose from N200 to about N220 – N255 per litter, thus shooting up operational cost for operators.
Part of government’s plan for the national carrier is to allow it access affordable fuel firm imported by the NNPC, in similar concession enjoyed by the Gulf State carriers, Emirates, Etihad, and Qatar, which gives them comparative advantage on various routes competing with airlines from other countries.
“It would be a great relief, if the government also extends this concession in fuel to private airlines to ease operational cost on regional international operations,” Nze said. She said the government can also midwife the interlining and code-sharing of passengers between private and national carrier, in which case private airlines can feed the national carrier directly with passenger from local airports thus benefit from tickets purchased by passengers.
The government, should also ensure that the Fly-Nigeria-Act when passed into law, would compel government officials flying international routes not operated by the national carrier, purchase tickets from private airlines on such routes, rather than fly foreign airlines.
Concerned local jittery
Chairman of the Airline Operators of Nigeria (AON), Capt. Nogie Meggison, however faulted the manner in which the entire Air Nigeria project had been shrouded in secrecy and in a manner that would not have served the best interest of the country.
Putting the issue into perspective, Meggison explained that: “Setting up of National carrier will cost Nigeria at least $3billon (a single B777 as of costs about $320million.)”. The AON chairman therefore asked: “Is it wise and should it be our priority as a nation to invest $3billon of tax payers money today into a venture that will for sure go down the drain within a maximum of five years required to establish a National carrier.” Meggison, who opposed the project, said the national carrier will need additional cash injection of $500million subsidy per year on average for the next 10 years to keep the airline afloat while about 97per cent of Nigeria’s 200 million people are grappling for the basic necessities of life; food, shelter, electricity, water, education and good roads. He therefore advocated that at a time of limited resources and struggling to fully recover from recession, what Nigeria needs is a more friendly operational environment and infrastructure support for the growth of a private airline industry.
Said Meggison: “Today, Air Peace is Nigeria’s largest airline operator with more than 30 aircraft. The airline has acquired four Boeing B777, with firm order for 10 Boeing B737Max. Medview has one Boeing B777, and another Boeing B767, while Azman Air just took delivery of an Airbus 340 aircraft.