Nigeria suspends national carrier relaunch
Thursday September 20 2018
The proposed Nigerian Air logo. FILE | NATION MEDIA GROUP
Nigeria has suspended its proposed new national carrier, Nigeria Air, Aviation minister Hadi Sirika, said.
The former pilot and promoter of the idea, broke the news on his Twitter handle on Thursday saying: “I regret to announce that the Federal Executive Council has taken the tough decision to suspend the National Carrier Project in the interim.’’
“All commitments due will be honoured.
“We thank the public for the support as always.”
Mr Sirika did not give the reason for the Federal Executive Council’s action.
Flag carrier
The Aviation minister on July 18 unveiled the logo of the proposed airline on the sideline of the Farnborough International Air Show in UK.
Mr Sirika said then that Nigeria was finally on track to inaugurating the national flag carrier to commence operations before the end of the year.
“Following the extensive market research, the branding of our new airline, Nigeria Air, demonstrates a true flag carrier of our nation, soaring through the skies in the shape of our nation’s eagle," he said.
“The Nigerian Government will support the launch of the new flag carrier with viability gap funding, in a Public Private Partnership (PPP) arrangement to deliver a national flag carrier.
A week after, the minister clarified that Nigeria would not pay $300 million or a five per cent stake in the proposed airline.
Equity or debt
He explained that the $8 million to be provided by the Federal Government represented the start-up capital for offices and other facilities required for take-off.
The $300 million, he added, was the entire airline cash flow funding requirements for aircraft, operations and working capital for three years 2018 to 2020.
According to him, this funding could be in the form of equity or debt.
Nigeria Air was to replace the Nigerian Airways that was liquidated in 2003 following its inability to meet its obligation due to massive corruption and inefficiency.
Nigeria Airways was founded in 1958 after the dissolution of West African Airways Corporation. It held the name WAAC Nigeria until 1971, when it was rebranded until it ceased operations in 2003.