AON applauds FG for suspending planned National Carrier
The Airline Operators of Nigeria (AON) has commend the federal government of Nigeria for taking the bold step to suspend the planned National Carrier Project in the interest of the nation.
AON said in a statement that the suspension was in response to its many cries for reason and continued call for a rethink by government regarding the project in the light of the tough economic situation in the country today and the fact that it is a moribund idea.
The AON chairman, Capt. Nogie Meggison stated that: “We thank President Muhammadu Buhari and the Federal Executive Council (FEC) for listening to our many calls for the idea to be suspended.
In our opinion we believe the process was neither transparent nor did it clearly define the role of Private investors in the entire process.”
He maintained that: “At this time of our national limited resources and struggle to recover from recession, AON would like to state that there are private Nigerian Airline Investors ready to invest and already investing heavily on the sector and only asking for a more friendly operational environment and infrastructure support”.
Putting the issue into perspective, Capt. Meggison said: “Setting up of National Carrier will cost Nigeria at least $3bn (a single B777 as of today costs about $320m.)”
He asked: “Is it wise and our priority as a nation to take $3bn from the Nigerian coffers today and put into a venture that will for sure go down the drain within a maximum of 5 years to establish a “National Carrier”?
“Bearing also in mind that the National Carrier will need an additional cash injection of $500m subsidy per year on average for the next 10 years to keep the airline afloat while about 97percent of the 200 million Nigerian masses today are grappling for the basic necessities of life; food, shelter, electricity, water, education and good roads. This is corroborated by a recent CNN report which stated that Nigeria has overtaken India as the country with the largest number of people living in extreme poverty, with an estimated 100 million Nigerians, or around half of the country’s population, thought to be living on less than $1.00 a day”.
Speaking further, he remarked that “National Carrier is an obsolete just for ‘“EGO/PRIDE” idea. Business and pride don’t go together. All over Europe South America, USA today, 90percent of them have been made private including Lufthansa, British Airways etc. Also, they are all flag carriers which are completely private entities.
Meggison explained further that “just about 10 days ago on September 12, 2018 was a clear indication of what obtains in the true world. Boeing financed a private Nigerian airline, Air Peace for purchase of 10 Boeing 737-8MAX airplanes in a deal valued at $1.5billion. This is much more than the Nigeria National Carrier and a clear indication of the future and where the world is today!!
South African Airways has been termed as being in insolvency in the last 10 years and has been receiving from the government bailout yearly ($400 million) in order for it to stay in business. Kenya Airways has equally been struggling. The airline is facing tough financial crisis that is threatening its very existence. The airline recently got a $750million bailout in the past year. It’s a known fact in the industry that Ethiopian airlines with over $35bn exposure, is rushing to go public (Plc.) or may start to default in payments soon”.
Stressing that Nigeria is a natural Hub for Africa, the AON chairman observed that airlines do not make a hub; but world-class infrastructure that makes a hub.
Today, Air Peace is Nigeria’s largest airline operator with 30 aircraft. The Airline has acquired four (4) B777 with ten (10) B737Max on order. Medview has gotten B777 and B767, while Azman Air just received an Airbus 340. These are huge positive steps and the biggest growth in Africa this quarter that needs government support, better infrastructure, low interest rates , double,taxes fewer levies, better runway landing aids among others as well as encouragement, Meggison said.
He pointed out that the AON believes government should focus on governance and let the businessmen do the business, adding that “government has no business in business.”
Maida expressed excitement at Nigeria’s success at World Radio Communications Conference 2023
Maida expressed excitement at Nigeria’s success at World Radio Communications Conference 2023
Maida expressed excitement at Nigeria’s success at World Radio Communications Conference 2023
Maida expressed excitement at Nigeria’s success at World Radio Communications Conference 2023