The Federal Government’s five per cent stake in the national carrier, Nigeria Air, is worth $12.5 million.
Prof. Tilmann Gabriel, who served as the Transaction Adviser to the project, disclosed this in a write-up, according to a Nairametrics report.
Gabriel said the Nigerian Government’s investment as start-up funding for the airline was $12.5 million, adding that the investment was in line with its five per cent share in the project.
Speaking on the formation of the airline, Gabriel said the process leading to the formation had been transparent contrary to the claim by the Airline Operators of Nigeria and other stakeholders.
He stated that the government had ensured a clear ownership structure for the airline under the Public Private Partnership Nairametrics report says.
He noted that the airline had a solid financial foundation with the total investment sum.
Gabriel added that Nigeria Air had a solid business plan for the next 10 years with a total start-up budget of $250 million.
He further stated that the national carrier was ready to launch with a fleet of Boeing 737 for domestic services, adding that the carrier was currently recruiting many Nigerian aviation professionals to help start its operations, Nairametrics says.
He said, “The Operations Control Centre at the Abuja Airport is ready to be opened with the most modern IT systems. The booking engines on the airline website and App will be available shortly with loyalty credit cards and other innovative pay systems.
“The immediate goal is to introduce all up-to-date customer service systems to make flying a pleasurable and easy-to-use enjoyment. Nigeria Air will be a new competitor in the Nigerian market, adding to the existing airlines. As Michael Porter taught us many years ago, the five factors of competition are for all businesses to recognise, amongst them is that all competition creates new businesses for all, as the customer has added choices.
“In short, the new year 2023 will have added choices for domestic flights for all customers, soon also on the regional and international markets.”
Gabriel also disclosed that Nigeria Air has applied to join the AON, “despite the kick by the umbrella body of indigenous carriers in the country to support the emergence of the airline.”
He also hinted that the Air Operators’ Certificate for Nigeria Air had reached phase three of the exercise, out of the five phases an intending operator is expected to go through, assuring that the airline would be issued the certificate by Nigeria Civil Aviation Authority, which would enable it to operate as a scheduled operator, according to Nairametrics.