Ethiopian Airlines emerges major investor for Nigeria Air

The Federal Government has announced that Ethiopian Airlines has emerged as the preferred bidder for Nigeria Air, NRTC can confirm.

Minister of Aviation Hadi Sirika stated at a press briefing in Abuja that Nigeria Air will launch via shuttle service. He said the service will be launched between both cities to establish a new affordable, realizable and comfortable travel experience.

Ethiopian Airlines will now own 49 per cent equity in the Nigeria Air deal. The Federal Government will control five per cent equity. Also, a consortium of three Nigerian investors (MRS, SAHCO and the Nigerian Sovereign Fund) will have 46 per cent.

“After a careful, detailed and ICRC governed selection process, Ethiopian Airlines (ET) Consortium has been selected as preferred bidder, offering an owner consortium of 3 Nigerian investors MRS, SAHCO and the Nigerian Sovereign Fund (46%), FGN owning 5% and ET 49%,” a statement quoted Mr Sirika as saying

ALSO READ: Equities market reverse gains reopen on a downturn

Proposed national carrier – Nigeria Air

Nigeria Air is the country’s proposed national carrier. It was unveiled at the Farnborough Air Show in England on July 18, 2018.

Recall that the project was placed on hold for two months after it was announced. This came about when critics voiced concerns over its sustainability and relevance. The proposed airline expected premiliminary cost was a huge $8.8 million and $300 million as takeoff cost.

Just like Nigeria Airways, will this not be another failed project?

The defunct Nigeria carrier, the Nigeria Airways crumbled and disappeared as a result of poor management and corruption.

However, the Federal Government has dismissed all concerns raised. Earlier in July, the Federal Executive Council approved the leasing of three aircraft to enable the airline commence operations on a date to be announced soon by the government.

It is no surprise that a lot of Nigerians are very concerned about the project. This is because it will be sponsored partly with public funds. Also coming at a time the government is struggling to fund other essential services.

Citizens are only hopeful that the deal struck with the Ethiopian Airlines over Nigeria Air will be largely successful.