Nigerian Air will commence operations in December as planned despite the lawsuit filed by Air Operators of Nigeria (AON), the Minister of Aviation, Senator Hadi Sirika revealed.
The minister who spoke during a stakeholders’ appreciation meeting for the reconstruction of the Lagos airport runway noted that he engaged indigenous carriers in Nigeria to participate in the “Nigerian Air” project.
He added that his several proposals to the indigenous airlines including Air Peace were turned down.
Investors King could recall that the Air Operators of Nigeria (AON) had filed a lawsuit at the federal high court in Lagos to stop the commencement of Nigerian Air.
According to the lawsuit, the indigenous operators argued that the process which led to the preferred bidder for the national carrier is with some irregularities.
In addition, the indigenous airline operators alleged that the idea of a foreign airline with a 49 percent stake in Nigerian National Carrier will amount to capital flight which will further harm the indigenous players.
Specifically, they noted that the partnership with Ethiopian Airlines on the National Carrier will open Nigeria’s aviation market to foreign operators which could send domestic airlines out of business.
In September 2022, the Minister of Aviation announced Ethiopian Airlines as the preferred bidder for “Nigerian Air” with an equity stake of 49 percent.
While the Federal Government reserved 5 percent, a consortium of Nigerian Investors which comprises SAHCO, MRS and the Nigerian Sovereign Fund holds 46 percent stake.
The minister who was enraged by the disposition of the indigenous airline operators noted that the process which led to the preferred bidder was transparent.
Having recorded a revenue of more than $1 billion during Covid, he added that Ethiopian Airlines has the technical and the financial capacity to partner with the federal government on a national carrier.
“I have been very transparent in the processes put in place to deliver the national carrier. If anyone wants to invest in a company, no one can stop them from investing” he said.
