Denis Opudo
In reference to the report released by News Agency of Nigeria (NAN), the Minister of State for Aviation, Hadi Sirika confirmed that Nigerian carrier airline would launch by the end of 2018 through a partnership between public and private sectors. He said that at the time when he was receiving the Outline Business Case Certificate of Compliance. This will help in setting up the airline, and it came from Chidi Izuwah, the Director General of Infrastructure Concession Regulatory Commission.
The construction of the airline will cost more than $308 million. The preliminary cost will be worth $8.8 million and start-up cost for over the coming three years will be worth $300 million. The larger part of the cost will come from the federal government. The other funds will be a contribution by an investor, a strategic partner who is not yet known. The external capital input will depend on the profit generated by the airline in the few years to come.
Sirika added that the airline would start to make a profit in three years after operations. He said that they would make the investment and work in line with the business plan through the management of the private sector. But it calls for initial federal government funding for the kick-off of the construction. According to Sirika, the national carrier will be entirely under the control of the private sector. This will be of much help because, in the case of government interference, it quashes off the certificate and the whole process.
The goal is to ensure that the national carrier has a fleet of 30 aircraft in five years. However, for the country, it will get a set of five airplanes on 19th December 2018. The logo, name, color scheme, structure, and type of airplane for the carrier will be known on 18th July at the Farnborough International Public Airshow that will take place in London. The event will also be used to order for the planes. Talks have been there more so since the current administration got into power about reviving the currently dormant national carrier. Despite having a mixed reaction about reviving the carrier, the importance of having one carrier is strong enough. Ali Mohammed Magashi, an aviation consultant, said during the Colloquium in 2018 that a national carrier should not only be put up for profit generation but an essential player in the growth and development of various sectors of the economy. Tourist countries such as Kenya, Ethiopia, Singapore, and Dubai have successfully made their national airline their brands by promoting their national culture on their national aircraft. Furthermore, a national carrier will offer training opportunities and jobs for booking agents, flight attendants, engineers, and pilots. It is also crucial to the setting up of and collaboration with other auxiliary services such as fuel suppliers, airport management, aircraft insurance firms and catering companies. Aviation industry offers around 60 million jobs globally.
Statistics from the World Bank states that in each 1% of the fund that the government spends on infrastructure leads to an equivalent 1% growth in GDP. It means that development of infrastructure goes hand in hand with economic growth in any country. Nigeria is in a position to double down on its revenue collection in sectors such as tourism with success in a national carrier which leads to improvement of its GDP. Sirika said that Nigerian population of more than 80 million people is in apposition to back aviation. Furthermore, the revival of the national carrier will lead to proper utilization of the Bilateral Air Service Agreement (BASA) signed between Nigeria’s government and more than 70 countries. Sirika added that the national carrier would maximize on the Africa Single Air Transport Market. This will be a great player in case the government plays its cards well. According to him, it will be a great threat to the country in case they do not get it right. However the country is on the right track, and they will make it a world-class airline with international, regional and domestic operations.
