The Airline Operators of Nigeria (AON) would like to commend the Federal Government of Nigeria (FGN) for taking the bold step to suspend the planned National Carrier Project in the interest of the nation and in response to the many cries for reason put forward by AON that has continued to call for a rethink by government regarding the project in the light of the tough economic situation in the country today and the fact that it is a moribund idea.
At this time of our national limited resources and struggle to recover from recession, AON would like to state that there are private Nigerian Airline Investors ready to invest and already investing heavily on the sector and only asking for a more friendly operational environment and infrastructure support.
Bearing also in mind that the National Carrier will need an additional cash injection of $500m subsidy per year on average for the next 10 years to keep the airline afloat while about 97% of the 200 million Nigerian masses today are grappling for the basic necessities of life; food, shelter, electricity, water, education and good roads. This is corroborated by a recent CNN report stated that Nigeria has overtaken India as the country with the largest number of people living in extreme poverty, with an estimated 100 million Nigerians, or around half of the country’s population, thought to be living on less than $1.00 a day.
“May I quote Vice President (VP) Yemi Osinbajo who said recently that: “The $3 billion strategic alliance contracts with the Nigerian Petroleum Development Company (NDPC) alone stolen under former President Goodluck Jonathan, which the promoters of the companies later made away with during the last administration, could have built seven (7) major roads across the country as well as the 2nd Niger Bridge.” The funds put into projects like these, no doubt, would have created jobs for our teeming youths than the few 2% of Nigerians that can afford to fly by air,” the AON Chairman argued.
Speaking further, he remarked that “National Carrier is an obsolete just for ‘“EGO/PRIDE” idea. Business and pride don’t go together. All over Europe South America, USA today, 90% of them have been made private including Lufthansa, British Airways etc. Also, they are all flag carriers which are completely private entities.”
Just about 10 days ago on September 12, 2018 was a clear indication of what obtains in the true world. Boeing financed a private Nigerian airline, Air Peace for purchase of 10 Boeing 737-8MAX airplanes in a deal valued at $1.5billion. This is much more than the Nigeria National Carrier and a clear indication of the future and where the world is today!!
South African Airways has been termed as being in insolvency in the last 10 years and has been receiving from the government bailout yearly ($400 million) in order for it to stay in business. Kenya Airways has equally been struggling. The airline is facing tough financial crisis that is threatening its very existence. The airline recently got a $750million bailout in the past year. It’s a known fact in the industry that Ethiopian airlines with over $35bn exposure, is rushing to go public (Plc.) or may start to default in payments soon.
Once again we thank the President and the FEC for this indefinite suspension of the national carrier. However, government should go back to the drawing board and engage with the private sector with transparency on how to position Nigeria as the Hub for Africa to take advantage of our God given gift of geographical location the same like we did with oil in the Niger Delta to create jobs for our alien youths and make aviation a major economic contributor to our GDP and a serious replacement of our dependence on oil alone.
