Aviation industry experts have expressed doubt that the Muhammadu Buhari administration would be able to realise the establishment of the national carrier projects before it winds down in May, 2019, but many have expressed full support for the project, noting that it would reposition the aviation sector if realized.
On Thursday the Minister of State, Aviation, Senator Hadi Sirika unveiled Transaction Advisers for the establishment of a national carrier along with that of maintenance facility, concession of four major airports in the country and others and said that Airline Management Group Limited was selected for the rebirth of a national carrier.
But experts who spoke to THISDAY doubt the successful establishment of the national airline within the stipulated time of barely one year, noting that for the transaction to be transparent and for it to be private sector driven, as government has emphasized, more time is needed for such airline to be “sincerely and transparently established.”
Travel experts and the organiser of Akwaaba African Travel Market, Ikechi Uko said that time would be a strong factor in government realising its objective in establishing a national carrier.
He wondered why nothing much was achieved in almost three years and now that government is winding down it is unveiling a transaction adviser.
Uko who is in full support of a national carrier because it would mark a turnaround in Nigeria’s air transport sector, create jobs and enable Nigerians benefit from its huge passenger traffic, said that it might not be easy for government to actualise its objective within the time frame.
“I don’t know what government’s checklists are but if in three years government could not advance the establishment of a national carrier, what is it going to do in less than a year? I believe that time would be the government’s greatest challenge. I know money has been expended in the project but it will need time to realise the set goal and time is not there. We hope government would succeed because Nigeria really needs a national carrier,” Ikechi said.
Industry consultant and CEO of Belujane Konsult, Chris Aligbe expressed optimism that if the Transaction Adviser was given timeline, government would be able to establish a national carrier before the end of the current administration.
Aligbe observed that what is different in the current effort and what was done in the past is that the transaction this time is very transparent and sincere, noting that what came close to it was when the International Financial Corporation (IFC) wanted to midwife a national airline for the country.
He also noted that the current process is open and getting the necessary approvals from the Federal Executive Council (FEC), adding that although the Transaction Adviser was unveiled last Thursday but it had already started working since Lufthansa Consulting was shown the door out by the federal government.
“I think the timeline given to them will be met if by the end of June they submit their report. It they submit their report by then it will be possible to realise the goal before the end of the administration. And I wish to note also that although the new national carrier will be private sector driven, but government must invest in it to kick-start it.
“No Nigerian will pay money in any product he has not seen and those who are talking about going to the Stock Exchange should realise that you cannot go to the stock market without existing product, which has at least existed for three to four years because you will have to present your financial result. Another thing that will make the new national carrier a success is that government wants to float a leasing company with about 60 or more aircraft from where the national carrier will acquire its fleet. This has not been done before,” Aligbe said.
In a recent interview, Sirika expressed optimism that this administration would soon establish a national carrier.
“I think in the next couple of months, two months maximum, we should be able to have our outline business case of this transaction and then the full business case will follow almost immediately after, because we are doing it simultaneously and after that we begin the process to establish the airline. So I will say that we are very close to having the national carrier established. Certainly, it will be within the first tenure of this administration,” the Minister had said.
The benefits of a national carrier are immense and include job creation. When established, the airline can employ as many as 300 pilots at the beginning, and it has the capacity to generate 10, 000 direct jobs and 20, 000 indirect jobs in five years.
It will help to develop Lagos and Abuja as operational hubs in West and Central Africa and establish operational benchmarks for other airlines in the industry.
A national airline will cut back on capital flight in the industry, saving an estimated $1.6 billion annually and it will lay a solid foundation for maintenance hangar. The national carrier will be the voice of Nigeria in the International Air Transport Association (IATA), African Airlines Association (AFRAA), and other global aviation policy organisations.
