Years after the federal government of Nigeria announced its intention to revitalize the country’s national carrier, Nigerian Air, the Nigerian Civil Aviation Authority (NCAA), on Monday, presented an Air Transport License (ATL) to the interim management of the airline at the headquarters of the aviation regulatory body in Abuja.
Captain. Dapo Olumide, a former managing director of the defunct Virgin Nigeria Airways is the interim MD of the airline.
The ATL precedes the Air Operator’s Certificate (AOC) which empowers the airline to operate scheduled commercial flights.
Minister of Aviation, Hadi Siriki announced the receipt of the ATL through his Twitter handle on Monday.
“Nigeria Air Limited received from Nigerian Civil Aviation Authority (NCAA) an Air Transport License (ATL), signaling the end of the beginning of operations of the Airline,” he said, adding that the commencement date of domestic operations will be announced in due course.
https://twitter.com/hadisirika/status/1533790464855445505?s=20&t=UUUdWrXHfBdKjk_UsBf3-Q
Last year, the federal government said Air Nigeria would commence operation in April 2022, but it only applied for the ATL in the said month. Sirika then explained how the much awaited national carrier will function following a federal executive council meeting held in Abuja.
According to NAN, the Minister said that the Nigerian government will own about the lowest stake in the airline. According to Sirika, majority shares of 49 per cent of the Nigeria Air project will be owned by strategic equity partners, 46 per cent by Nigerians while the Federal Government will own five per cent of the shares.
The minister revealed that the council also approved N1.49 billion for the provision of Automated Civil Aviation Regulatory Equipment to be located at Nnamdi Azikiwe International Airport.
“Today in Council, Ministry of Aviation presented two memoranda. The first one is approval for the award of contract for the provision of Automated Civil Aviation Regulatory Equipment, including the software support and training, which will be located at Nnamdi Azikiwe International Airport, Abuja.
“In summary, this is the software that will allow all of the activities of civil aviation regulations to be done electronically on one platform, including payments, follow-ups on personnel licenses, medicals, economic regulation of airlines, safety regulations of airlines and all other businesses within the envelop of civil aviation, will be monitored by this single software. So, that has been approved.
“This one also is the approval of the Outline Business Case for the establishment of the National Carrier. This is the sixth time the memorandum appeared before the council and sixth times got lucky to be passed by council.
The structure of the proposed airline – Federal Government would be owing not more than five per cent. So, five per cent is the maximum equity that government would take.
“Then, 46 per cent would be owned by Nigerian entrepreneurs. So, if you add that is 51 per cent. So, 51 per cent majority shareholding by Nigerians.
“And then, 49 per cent will be held by strategic equity partners or partners will be sourced during the procurement phase, which is the next phase.’’
The minister revealed that the Nigeria Air, when operational, would generate over 70,000 jobs, saying “these 70,000 jobs, they are higher than the total number of civil servants that we have in the country’’.
While this is a totally different method of operation from the liquidated Virgin Nigerian Air, Nigerians are not optimistic about the chances of the national carrier to thrive. The pessimism is borne from the unrelenting headwinds the Nigerian aviation industry is battling with, which has seen many airlines go into massive debt and eventually out of operation.
There is also concern that the government’s involvement in the airline’s operation will dampen its growth as it is visible in other of its parastatals. However, experts said with the government’s influence limited to 5% of its stake, the national career has a chance to rewrite its story.
Nigeria Air Limited received from Nigerian Civil Aviation Authority (NCAA) an Air Transport License (ATL), signaling the end of the beginning of operations of the Airline. Commencement date of domestic operations will be announced in due course. ????https://t.co/yDcWtUZkf6???? pic.twitter.com/hIvl5YsEJY
— Hadi Abubakar Sirika (@hadisirika) June 6, 2022
