Nigeria Air controversy: Operators push for national flag carriers

2 months ago 25
ARTICLE AD

Following the controversy surrounding Nigeria Air, industry operators are increasingly advocating the establishment of flag carriers to strengthen the country’s international aviation presence, writes PRINCESS ETUK

Nigeria Air had been set to begin flight operations in October 2024 amidst ongoing controversies over its viability. The national carrier, which was first unveiled at the Farnborough International Airshow in London in 2018, was officially unveiled by former Minister of Aviation Hadi Sirika in May 2023, just 48 hours before the end of his tenure.

However, this sudden launch sparked significant nationwide debate.

According to reports at the time, Nigeria Air was expected to start operations with two wide-bodied planes and six narrow-bodied aircraft. Ethiopian Airlines, which held a 49 per cent stake in the airline, was to manage its operations under a management contract, aiming to connect the local Nigerian market with international destinations.

The Nigerian government owned a five per cent stake, while the remaining shares were held by other institutional investors. The goal was to establish Nigeria Air as a successful flag carrier for the country.

However, the launch of the national carrier was marred by controversy and allegations of deception involving Sirika in2023. Reports surfaced that Sirika misled former President Muhammadu Buhari and the public by unveiling Nigeria Air just 48 hours before leaving office, despite the airline not having obtained complete certification.

According to a source from Aviation World, Sirika deceived Buhari into believing that the airline was ready for launch, without disclosing the lack of necessary approvals. Additionally, it was revealed that Sirika had obstructed the Nigerian Eagle airline from obtaining its certification because its name and branding were too similar to Nigeria Air.

Sirika allegedly attempted to use the Airline Operators Certificate of Nigerian Eagle for Nigeria Air but was unsuccessful. Critics argued that his actions were driven by self-interest rather than national interest, leading to widespread calls for his investigation along with all associated agencies.

The controversy intensified when Sirika, despite knowing about ongoing litigation against Nigeria Air, claimed that no rational court could prevent the airline from flying. He also contracted Ethiopian Airlines to provide an aircraft painted in Nigeria Air colours, which was flown into the country for the unveiling without the required certification from the Nigerian Civil Aviation Authority.

The uproar following these revelations prompted the House of Representatives Committee on Aviation to summon the Permanent Secretary of the Ministry of Aviation, Dr. Emmanuel Meribole, along with the airline’s Managing Director, Capt. Dapo Olumide, and the shareholders for an emergency meeting. After the meeting, the legislative body labeled the project fraudulent, vowing to investigate and expose the full extent of the issues surrounding Nigeria Air.

To qualify for an operating license in Nigeria, an airline must have three of its aircraft registered in the country and go through five essential steps: the pre-application phase, formal application phase, documentation phase, demonstration and inspection phase, and certification phase.

The Nigeria Air project, initially announced over eight years ago, was still in phase one when the Buhari administration concluded its tenure, raising significant concerns about transparency and accountability.

In 2023, the Airline Operators of Nigeria accused East African carrier, Ethiopian Airlines, of blatantly disregarding the country’s court system due to its involvement in the static display of Nigeria Air aircraft. AON also called on the Nigeria Civil Aviation Authority and the judiciary to penalise Ethiopian Airlines for its blatant violation of a court order and the Nigerian Civil Aviation Regulations.

In a statement released by its spokesman, Prof. Obiora Okonkwo, AON asserted that Ethiopian Airlines had failed to act as a responsible corporate entity, allowing itself to be part of what was described as the “grand deception of Nigerians.” The association stressed that the airline knowingly landed an aircraft in Abuja on Friday, May 26, 2023 that neither belonged to Nigeria Air nor was registered in Nigeria as mandated by the NCARs, thus blatantly disregarding the country’s court order and regulations.

AON said, “This goes to show that Ethiopian Airlines operators have no iota of respect for our country, our laws, and regulatory agencies. It is our hope that Ethiopian Airlines do not get away with this disrespectful action.”

Additionally, AON explained that the Ministerial Committee on the Establishment of a National Carrier had recommended the setting up of a national airline that was private sector-driven with minimum government involvement.

AON accused Sirika of disregarding the recommendation by taking personal control of the project, from designing the logo and unveiling it at the Farnborough Air Show in the United Kingdom, to establishing the company and providing office spaces for it, among other actions.

It also purported that Sirika had made an attempt to kill the entire indigenous operators and hand over the monopoly to Ethiopian Airlines in a “dubious and fraudulent way against the economic interest of Nigeria,” which it said compelled it to approach the court to stop the airline from berthing.

The current Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed in May  that the Nigeria Air project remained suspended, even as he described the project as fraudulent.

He noted that the national carrier, which was supposed to be an indigenous project and was expected to spark hope for Nigerians, had been trailed by secrecy and fraudulent activities. He explained that there was never a legitimate project to that effect but rather “an Ethiopian Airline disguising as Nigerian Air with an Ethiopian National Flag.”

He maintained that the project remained suspended, adding that it was anti-Nigeria.

 “It was never Air Nigeria; it was Ethiopian Airlines trying to fly our flag. It was not Air Nigeria. That is the truth. It was not Nigeria. It only printed Air Nigeria. It was an Ethiopian airline trying to fly our flag. If it is so, why not allow our local people to fly our flag? Why bring a foreigner to fly our flag? So, nobody should deceive you that Air Nigeria must be indigenous, must be wholly Nigeria or must be for the full benefit of Nigerians. Note that 60 per cent of the profit is given to another country. How does that benefit us? It remains suspended. It remains so,” Keyamo said.

In June, Ethiopian Airlines announced that the Nigerian government was no longer interested in establishing the proposed Nigeria Air joint venture. This confirmation came from the Group’s Chief Executive Officer, Mesfin Tasew.

“The Nigerian government has lost interest in partnering with a foreign airline,” Tasew said.

This announcement by Ethiopian Airlines came barely two months after the Federal Government indefinitely suspended the Nigeria Air project.

CEO of Centurion Security Limited, John Ojikutu (retd.), expressed his firm opposition to the reestablishment of a national carrier in Nigeria, warning that it would create significant problems for the government.

Ojikutu emphasised the need for Nigeria to shift focus from a national carrier model to adopting flag carriers, which would be privately run but designated by the government for specific routes.

“I am not in support of a national carrier again, because it’s going to be a problem for the government. In the same way we have been coming with Nigerian Airways to government carrier, a national carrier, turn to government carrier. So, what we need are flag carriers. Let us start with two, one to run regional and continental, and the other to run intercontinental,” he stated.

Ojikutu elaborated on the advantages of flag carriers over national carriers, citing the example of British Airways, which operates as a flag carrier rather than a national carrier. He urged the NCAA to regulate these flag carriers, ensuring they were not shielded from enforcement of regulations, unlike some current government-operated entities.

“Nigerian people must buy into a flag carrier,” Ojikutu stated. “It should be under the regulation of NCAA. It’s not the one we are going to be protected from enforcement of regulations as we have been doing with the Federal Aviation Authority of Nigeria. FAAN is supposed to have been concessioned out. So, a lot of things are happening. People in the administration of government are using it to steal money.”

He criticised the government’s failure to initially set up flag carriers using existing airlines like Aero and Arik, and suggested Air Peace as a viable starting point for establishing a flag carrier.

“I said to start with Air Peace, let Air Peace sell at least 50 per cent of the shares to the public and credible Nigerians. Then you have a flag carrier. The flag carrier is like your ambassador,” he added.

Ojikutu believes the Nigeria Air project is a misstep and urged the government to withdraw from commercial services and focus on finding credible investors and technical partners to manage such ventures.

“They should cancel the Nigeria Air. They can call it Nigeria Air, but let them not call it a national carrier, let it be a flag carrier. The government should not have a hand in it. They should just look for a very good technical partner,” Ojikutu advised.

He also stressed the importance of transparency and accountability, cautioning against the misuse of government funds, as seen in past aviation projects.

“All the money they give to all these airlines, N200bn is gone. They didn’t need to do that. So, anything that is going to get government involved in commercial services is stealing. They should just forget it. The government should not get itself involved in commercial services.”

Aviation analyst and member of the Aviation Round Table, Olumide Ohunayo, shared similar sentiments, emphasising the distinction between national and flag carriers.

“Nigeria Air was not a flag carrier, it was being designed as a national carrier with the government owning a percentage, and once the government controls a percentage, it becomes a national carrier. Flag carriers are airlines you have designated. If you designate any airline to any flight on a scheduled flight, it becomes a flag carrier,” Ohunayo stated.

He added that Nigeria already had several private airlines serving as flag carriers and advocated for an enabling environment to strengthen these airlines.

“We have the highest number of domestic airlines in Africa. It is how to translate these airlines into strong flag carriers that is left, and that is what we should be working on.”

Chief Executive Officer of Medview Airline, Muneer Bankole, highlighted the unresolved issues from the airline’s past and called for a reawakening of the story before it faded into oblivion.

“There was virtually no basis for the government to be in this business of Nigeria Air,” Bankole stated. “A long time ago, there have been a lot of correspondences, meetings upon meetings, trying to discuss with the airline and other stakeholders.”

Reflecting on his experience with the now-defunct airline, Bankole lamented the situation faced by former employees, including him, who were yet to receive their due benefits. “I was in Nigeria Air, this unfortunate incident happened, and it was liquidated, and it has never been the same. Nigerians need to reawaken the story of Nigeria Air before it dies because most of the people that worked there, including me, have not been paid their benefits,” he said.

“To clear the matter on the ground, you need to settle those who have worked in the Nigerian airline,” he insisted.

He reminisced about the days when the national carrier was Nigeria’s symbol of pride, with its green and white colors visible on international routes.

“That airline was a pride for everybody. Go to London every day, you see the green and white colours. You go to America three, or four times a week you see the green and white. We were flying virtually all those networks,” Bankole added.

However, he spoke about the premature demise of the national carrier and urged the government to address the unresolved issues from that era.

“The fact remains that the national carrier died a premature death. Let the government be kind enough to pay people who have worked there. Clear these people.”

Chief Operating Officer of United Nigeria Airline, Osita Okonkwo, emphasised the importance of establishing flag carriers for Nigeria to maintain and expand its international aviation presence.

He said, “UK, British Airways, and Virgins are flag carriers because they’re not owned by the British government. All those that do international flights under Bilateral Air Service Agreements are flag carriers,” Okonkwo said.

He added that for Nigeria to effectively operate on international routes, it was essential to have designated flag carriers, as most international flights operated under Basa agreements. He noted that until airspace is fully liberalized, which would allow any airline to fly internationally, Nigeria needs to ensure it has strong flag carriers representing the country.

“So, Nigeria needs flag carriers because Nigeria has to operate international flights. And when you operate, until the airspace is liberalised that anybody can fly, mostly they are operated under Basa,” he said. “You really don’t have much to do other than to designate some operators as carriers to become representatives. Lack of that is not in the interest of Nigeria.”

Okonkwo recognised Air Peace as a current example of a successful Nigerian flag carrier, flying routes to the UK, China, Dubai, and India. He described the designation of flag carriers as a natural and necessary development for the country’s aviation industry.

“Currently, Air Peace is a flag carrier, flying the UK-Nigeria route, going to China, going to Dubai, going to India as a flag carrier, so it is a natural development, it is not a complicated matter,” Okonkwo stated.

Read Entire Article