Amid a court case initiated by the Air Operators of Nigeria (AON) against the much anticipated Nigerian national carrier, indication has emerged that Ethiopian Airlines may pull out of the proposed “Nigeria Air”.
It should be recalled that the domestic airline operators have alleged that the proposed Nigerian Air which is in partnership with Ethiopian Airlines will cripple their business and also lead to capital flights.
Sources familiar with the matter explained that the management of the best airline in Africa, Ethiopian Airlines is likely to abandon the deal due to negative publicity and controversies surrounding the agreement.
The Airline is worried that such negative publicity could damage its growing reputation.
Investors King earlier reported that the Nigerian Government had picked Ethiopian Airlines as the preferred bidder for the proposed Nigeria Air.
While making the announcement in September, the Minister of Aviation, Senator Hadi Sirika announced Ethiopian Airlines as the largest equity holder with 49 percent shares. The federal government holds 5 perfect shares while a consortium of investors which include MRS, SAHCO and the Nigerian Sovereign Wealth Fund holds a stake of 46 percent.
In the lawsuit which was filed against the take of the national carrier, domestic operators alleged foul play and seek the termination of the deal.
They also disclosed that the Minister of Aviation has a vested interest in the deal which makes it fail the integrity and transparency test.
Last Thursday when the case was heard in Lagos, the presiding judge, Hon. Justice Lewis-Allagoa gave an order of interim injunction restraining the defendants, Nigeria Air Limited, Ethiopian Airlines, Sen. Hadi Sirika, and Attorney General of the Federation, to maintain the status quo on the national carrier project.
The order came as a setback for the national carrier which was scheduled to start operation by December 2022. Already, there has been some ongoing work at the Muritala International Airport in Lagos to accommodate the national carrier.
