THE NATION MONDAY, NOVEMBER 25, 2013
33
ISSUES
• Oduah
• Aligbe
• Ore
Long road to the proposed national carrier Continued from page 32
It is expected to hold some lucrative routes in monopoly, negotiate commercial agreements, pools and bilateral agreements with foreign airlines, articulate manpower training for the sector and serve as a diplomatic tool for Nigeria. Designating Aero Airlines as the national carrier may also allow the airline to codeshare with other international airlines, as this would improve Nigeria's ability to take advantage of BASA it has in place with other countries. Aero Airlines may have been selected for the role because of the 60 per cent stake the AMCON holds in the airline. Controversy is trailing the choice of a national airline, as the Ministry of Aviation has denied that an existing airline has been chosen. Princess Oduah said early this month that a new national airline would be unveiled before the end of the year. Speaking in an interview, the Special Assistant on Media to the Aviation Minister, Mr Joe Obi, said: "I am not aware of the designation of Aero as national carrier. What I know is that the new national carrier would be unveiled soon and there would be a lot of new aircraft coming into the country as well. “This will not be the first time speculation has centred on an indigenous airline being considered as the national airline. Last year, there were speculations that Arik Air was going to be named the national airline.” However, Assistant General Secretary, Air Transport Senior Staff Association of Nigeria (ATSSAN), Comrade OlayinkaAbioye, said the government had the right to pick either Aero Airlines or Arik Air as the national airline, but added that before doing so it should settle the outstanding benefits of Nigeria Airways staff. He said the government should not be in a hurry to unveil the new national airline until everything necessary to ensure its success has been put in place. Of concern to him is the huge debt profile of most indigenous airlines which, he said, government should consider first before designating any airline as the national carrier. But a former managing director of the defunct Nigeria Airways, Captain Mohammed Joji, said the country does not need a national carrier but a flag carrier. He said: "Nobody should take taxpayers' money and set up an airline. If you want to set up an airline, you go to the banks and raise a loan for it. Local airlines should be supported to go into alliance with international airlines. There are 24 airlines flying out this country and we cannot compete with a single one of them." The Nigerian government is seeking a new dominant carrier to fly its national colours. "What we are looking for is not a national carrier but it should be a dominant carrier. Whichever airline that they are hoping to be (the0 national carrier is going to go the same way Nigerian Airways went, it will die a natural death," Captain Dele Ore, Presi-
dent, Aviation Roundtable said in an interview last week. The domestic airline will enjoy privileges and preferential rights given by the Federal government for international operations. As the national carrier, it will also have a monopoly over some routes and bilateral agreements with foreign airlines. "They have not established and explained to the world and Nigeria why Nigerian airways was liquidated. Staff who were pensioned from Nigerian airways were unpaid and they think they'll be wishing them luck to succeed in whatever they are doing," explained Ore. Nigerian Airways served as the country's flag carrier from October 1, 1958 and ceased operations in 2003. It was wholly owned by the government and the airline's operations were concentrated at Murtala Muhammed International Airport, Lagos. "The shoes of Nigerian airways are too big for anyone to step into." In terms of operations, almost all the seven local carrier airlines are battling with funding, huge debt load and multiple charges. Ore believes that no matter how smart or good the idea is, the government is going about it the wrong way. "The government is not doing enough to encourage investments into this place. Rather, than doing that, they have some very hostile policies that make it very unattractive," he said. According to Ore, if there is going to be a strong carrier, it will have to emerge from the private sector as the government doesn't run good enterprises. Nigeria One (Lagos) has been renamed to Nigerian Eagle, sources intimate with the Nigerian aviation industry hinted last week. Though still subject to official confirmation, Nigerian Eagle is set to come about from the amalgamation of Aero Contractors (AJ, Lagos) and defunct national carrier, Air Nigeria (VK, Lagos) by virtue of them both being controlled by the government-owned AMCON. Nigerian Eagle Airlines (VK, Lagos) was the name chosen for Air Nigeria's predecessor following the withdrawal of Richard Branson and the Virgin Atlantic (VS, London Heathrow) brand from Virgin Nigeria (VK, Lagos) in 2010.
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A source at AMCON said it was not the responsibility of firm to decide for Nigeria which airline would be a national carrier. He said: "AMCON does not decide who will be the national carrier." The Minister of Aviation, Mrs. Stella Oduah, had said that government is trying to set up a national carrier that will not be funded and managed by the Federal Government and that the carrier will be called 'NigeriaOne." The Minister of Aviation, Ms. Stella Oduah, assured Nigerians that the proposed National Carrier, would commence operations before the end of year. According to her, all the necessary framework and legal requirements for the smooth roll out of the carrier are already in place. She said: "Well, I think that everything we need to do for the carrier to take off is in place. "We are just waiting for the approval from presidency and the Federal Executive Council (FEC), to take off, so give or take, the new national carrier will take off before the end of the third quarter." Besides, the final approval from presidency and FEC, she added that every other thing was there, including the the legal framework establishing the national carrier. "We are awaiting the final approval from FEC and the presidency to roll out the carrier," Oduah stated. The minister, who spoke through Obi, has also reacted to the pessimism expressed by some persons over the project. "This national carrier that we are talking about is supposed to be private sector driven, government is only providing the legal and other framework, and the enabling environment for the carrier to take off.” According to him, there is going to be a core investor who will be a private entity and then other shares of the company will be thrown to Nigerians, "you and I, including the governor and every other person will buy in, assuring that the carrier will also be professionally managed. Oduah said the former national carrier failed due to bad management. "This one will be private sector-driven, will be managed by professionals who managed other carriers elsewhere in the
We must avoid what led to the failure of the defunct national carrier and the plan to form several other ones since then, if we must have a new national carrier this time around. I am optimistic that a new national carrier will go a long way in saving the industry a lot of money and assist travellers. I think the minister is passionate about it, too
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world, and don't forget that since it is going to be private sector-driven with private sector funds, there is no private sector corporate entity that will put in so much money in setting up a capital intensive business like aero plane business and will now leave it to mediocres to manage." The Minister of Aviation, Ms. Stella Oduah, also assured Nigerians that the proposed National Carrier, would commence operations before the end of the year. According to her, all the necessary framework and legal requirements for the smooth roll out of the carrier are already in place. She said: "Well, I think that everything we need to do for the carrier to take off is in place. Stakeholders are, however, divided over the desirability of a national carrier for the country. Minister of Aviation in the Second Republic, Mr. Samuel Mafuyai, has called on the Federal Government to establish a national carrier in order to maximise Nigeria's growing air travel market, and boost the image of the country in the comity of nations. Mafuyai said the national carrier is a tool of diplomacy and a symbol of greatness as the airline, emblazoned with the country's insignia flies to different parts of the world, registering its presence. "The Federal Government needs to set up a national carrier that the people could be proud of. The Managing Director, Belujane Konsult and former spokesman of Nigeria Airways, Mr. Chris Aligbe, has cautioned that the Federal Government should not have controlling equity in the proposed Nigerian national carrier. He said government should not have more than five per cent equity stake in the carrier. He said the only way Nigeria can become a hub in Africa Aviation industry is to have a national carrier that can compete with other foreign airlines coming to the country, but for the airline to succeed, government should not have controlling shares as that will lead to undue interference in the running of the airline. He said the decision by the government to scrap the defunct Nigeria Airways was a major mistake that has taken the Nigerian aviation industry back. He contended that the defunct airways was inefficient because of corruption, but it was government's undue interference and control that led to the collapse of the airways. He pointed out that it was a mistake to have invited Virgin Atlantic to come and help Nigeria set up a national carrier. Chris Aligbe, former manager, corporate affairs of defunct Nigeria Airways Limited (NAL), noted: “The failure of the first national was not only due to corruption but government interference on the management and the running of the airline.” He said since it was fully owned by government, it was seen as wholly appointing the managers at will and remotely controlling the activities of the company. Aligbe, who is also the chief executive officer of Belujane Konzult, however noted, that as much as he would support the formation of another national carrier, it is advisable that government owns between five to 10 percent in the airline, while the remaining percentage should go to the private sector. “We must avoid what led to the failure of the defunct national carrier and the plan to form several other ones since then, if we must have a new national carrier this time around. I am optimistic that a new national carrier will go a long way in saving the industry a lot of money and assist travellers. I think the minister is passionate about it, too. “But government only needs to own a little share to give it a sovereign coverage. That is the difference between British Airways and Virgin Atlantic Airways. Kenya is also proud of Kenya Airways. Today, Ethiopia is proud of Ethiopian airlines today because they are successful,” he said. He said it will also be difficult for the country to become a hub as desired. “Unless Nigeria has a national carrier, it will never turn Nigeria into a hub. We even need more than one national carrier but as soon as government owns more that 10 per cent in the new carrier, there may be problem,” he added. Also, former President, Nigeria Cabin Crew Association, Olu Fidel Ohunayo, believes that unless the national carrier is wholly managed and owned by private investors, with government owning about five per cent stakes, it may be difficult for such airline to succeed. 2