The much anticipated “Nigerian Air” could be reaching a stumbling block in the meantime as Airline Operators of Nigeria (AON) filed a lawsuit to stop the deal and withdraw the Air Transport Licence already issued to Nigeria Air.
In the lawsuit filed at the Federal High Court in Lagos, Nigerian Air, Ethiopian Airlines, the Minister of Aviation, Hadi Sirika, and Attorney-General of the Federation, Abubakar Malami were listed as defendants.
Investors King had reported that the Federal Government through the Ministry of Aviation has chosen Ethiopian Airlines as the preferred bidder for the country’s National Carrier, “Nigerian Air”.
It would be recalled that in September 2022, the Minister of Aviation, Senator Hadi Sirika announced Ethiopian Airlines as the preferred bidder with a 49 percent stake.
While the federal government holds a stake of 5 percent, a consortium of Nigerian investors which include SAHCO, MRS and the Nigerian Sovereign Fund hold a combined stake of 46 percent
Justifying the reason why Ethiopian Airlines emerged as the preferred bidder, Hadi Sirika revealed that only Ethiopian Airlines showcase interest in the bidding despite the numerous extensions to accommodate more interest.
The minister added that Ethiopian Airlines met all the stipulated conditions and the company is ready to commit the needed fund.
This however did not go down well with the domestic air operators who claimed that it will lead to capital flight and cripple the domestic competitors.
They noted that the Federal Government’s partnership with Ethiopian Airlines on the National Carrier will send domestic airlines out of business by opening up the domestic air travel market to Ethiopian Airlines.
Furthermore, the Air Operators of Nigeria alleged that the company which served as the transaction adviser for the deal was incorporated in March 2022 and could be linked to the aviation minister.
They further alleged that the Air Transport License (ATL) issued to Nigerian Air is faulty as it did not pass through the normal security clearance.
