National Carrier: AON suggests $200bn threshold for foreign bidders
The Airline Operators of Nigeria (AON) has called on the Central Bank of Nigeria to set a benchmark of $200 billion for any foreign airline interested in investing in the proposed national carrier.
Nigeria’s Minister for Aviation, Hadi Sirika, has been strongly agitating for a national carrier since he assumed the ministerial post, and recently declared that some foreign airlines were interested in keying into the project, including Emirates and Qatar Airways.
There are indications that over 40 per cent of equity shares of the proposed national carrier will be owned by foreign partners, a proposition that has not gone down well with the AON.
Speaking at a roundtable gathering of aviation professionals in Lagos on Thursday – March 31, 2022, the AON said it would not oppose the establishment of a national carrier even though the idea is obsolete worldwide.
It, however, warned that allowing foreign airlines to own a larger share of the project was “tantamount to selling the country’s commonwealth to any foreign airline for free or for peanuts.”
For a profitable bargain, the AON suggested, among other things, that any foreign airline interested in investing in the national carrier should be made to pay $200 billion in cash to the Central Bank of Nigeria before takeoff.
“We, in AON, oppose vehemently any decision or action that is tantamount to selling the country’s commonwealth to any foreign airline for free or for peanuts. Both the domestic and international airline operations network and market value when fully utilized are worth over $400billion dollars every five years. Nigeria and Nigerians should be the main beneficiaries of this massive industry.
“Therefore, any foreign airline interested in investing up to 49% into the national carrier, which would eventually give the said foreign carrier unlimited access to our grandfather rights to operate both within and outside Nigeria, should be made to pay nothing less than $200billion dollars in cash to be deposited through the CBN.
“The foreign airline’s investment in the national carrier must be through the injection of cash first before any other way. Anything short of the above is like selling off the country’s wealth to another country. Bringing a foreign airline to come and dump their redundant excess capacity (aircraft) on our nation in the name of investing 49% in the proposed carrier will do more harm than good to the nation’s economy.
“This is a road Nigeria has travelled before with so many regrets and shame through the adventure of Virgin Nigeria. History is about to repeat itself,” said Alhaji Abdulmunaf Yunusa Sarina, Chairman of AON who was represented by Chief Allen Onyema.
The AON also said many Nigerians will lose their jobs if any foreign airline is allowed to own the proposed national carrier.
“Over twenty thousand Nigerians depend on domestic airlines for survival. Any attempt to bring in a foreign airline to dominate the sector will lead to the loss of thousands of jobs provided to innocent families. Foreign investors will outsource the jobs to ground handlers and heavily rely on technology to replace hard-working fellow citizens,” it said.
The AON expressed confidence in the ability and capacity of some of its members to become designated national carriers, having proven their capacity by acquiring the latest aircraft types and operating to international destinations.
The operators called for a public debate with a view to unraveling the processes being adopted by the ministry of aviation to bring the national carrier to birth.
“There is a serious and urgent need for a public debate on the need for a national carrier and the processes to be adopted to bring it to birth. Regrettably, this has not been done as Nigerians and various relevant MDAs are still kept in the dark about the project,” the AON added.
