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How Ethiopian Airlines Consortium Emerged as Nigeria Air’s Preferred Bidder – Sirika

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Aviation Minister, Senator Hadi Sirika has given reasons why the Federal Government decided to chose Ethiopian Airlines as the preferred bidder for the nation’s National Carrier, Nigeria Air.

According to the Minister, Ethiopian Airlines was the only airline that responded to its requests for expression of interest and fulfilled all the stipulated conditions laid down by Nigeria.

The Minister who disclosed this while presenting the scorecard of the Ministry of Aviation in Abuja on Thursday said other airlines in the world failed to respond to Nigeria’s invitation to join hands with her to float a national carrier despite the fact that he personally went to the airlines and met with them at several air shows and international aviation forums to convince them to partner with the country.

He, however, said that Ethiopian airline proved that it is not only efficient and prosperous by registering over $1bn profit after tax even in the wake of COVID-19 but has continued to flourish despite the challenges in the aviation sector globally.

He added, “We did not cede Nigeria Air to Ethiopian Airlines. It is the only airline in the world that made $1 billion profit even during the COVID-19 pandemic. It is the most prosperous, efficient and leading airline in the African continent and it was the only airline that responded to our request for partnership to run the airline after many months of advertisement of expression of interest.

“Even after some interested persons asked Nigeria to extend the time of EoI and we did, none of them showed interest. Officials of the ministry of aviation led by me personally visited some of the leading airlines across the world and pleaded with them to take up the partnership with Nigeria to set up the airline, none of them signified interest except Ethiopian Airlines, which has been allotted 49 per cent shares while Nigerian institutional investors take up 45 per cent while the federal government will take up only five per cent.

“The choice of Ethiopian Airlines is good for Nigeria and it is in line with the African Union Agenda. Our desire is for Africa to come together and lead the African aviation market through our new partnership with Ethiopian Airlines. The partnership will also reduce cost of operations and airfares for Nigerian and African air travellers as opposed to the current situation.

“Contrary to what people think, let it be known that Ethiopian Airlines emerged as the preferred partner of Nigeria Air through a transparent and credible process that cannot be faulted because we want the project to succeed so that Nigeria can have an airline that does not suffer the fate of the former Nigeria Airways.”

Speaking further, the minister noted that going forward, all airports in the country must be built and operated in accordance with the Aviation masterplan that had been developed in order to avoid chaotic situations that have already sprung out in many of the airports including Lagos International airport, where many structures have already been marked for demolition in the overall public interest despite the cost involved.

On the Nnamdi Azikiwe International International Airport in Abuja, the minister pointed out that the entire stretch running from Bill Clinton Way through Gwagwalada has been captured under the Abuja Airport Masterplan and that any development that does not fit into the masterplan would be demolished.

He, therefore, cautioned individuals and entities currently carrying out development projects along that stretch measuring about 12,000 hectares of land, to pause and await further information to avoid demolition.

The minister further warned international airlines operating in Nigeria to respect Nigeria’s sovereignty, dignity and honour in their operations under the Bilateral Air Services Agreement that they signed with the country and not to threaten it at random because of the delay in repatriating their funds.

He said that those airlines need Nigeria just as Nigerians need their services and that they should therefore show respect, patience and understanding with Nigeria, adding that trapped funds will be cleared before the end of the year.

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National Carrier to be Launched Before Buhari’s Exit, says Aviation Minister

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By Elizabeth Okwe

The Federal Government has given the assurance that all impediments against the establishment of the National Carrier, Nigeria Air, will be removed to enable it take to the skies before May 29, 2023.

Minister of Aviation, Sen. Hadi Sirika, who gave the assurance at the National Aviation Stakeholders Forum 2023, on Thursday in Abuja, said the Federal Government is taking necessary measures to overcome the hurdles introduced by the indigenous airlines that went to court to stop the process.

He described as unfair the action of the local airline operators, saying that the Buhari government had supported local airlines to stabilise and grow more than all previous governments.

Sirika described their action as constituting a stumbling block to the realisation of the national carrier project which will impact positively on job creation and better opportunities in the industry.

According to the Minister, the Nigerian Aviation industry is the only one in the world where qualified pilots are without jobs while in other climes there’s shortage of pilots.

“About 50 pilots had come to me at a time complaining about their unemployment status, and I believe that the national carrier should be able to employ more pilots and create other job opportunities” he said.

The reason for this, he said, was because of domestic airlines preference for foreign pilots and other operational staff and advised them to begin to put the nation first in their recruitments.

He described Ethiopian Airlines, the preferred bidder for the national carrier as amongst the very best that the industry has, with over 200 aircraft, highly profitability, one of the best training institutions and a Maintenance, Repair and Overhaul (MRO) facility.

The Minister further reiterated that with the population of Nigeria and Ethiopia, the two largest in Africa, and Nigeria’s location at the center of the continent, Nigeria Air will be able to play a major role in the Single African Air Transport Market (SAATM).

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Aviation Minister to Host Stakeholders on Developments in the Sector

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(File photo)

In continuation of the established tradition of regular interactions with major players in the aviation industry in Nigeria since the inception of the Buhari administration, the Minister of Aviation, Senator Hadi Sirika will host aviation stakeholders on Thursday 23rd March, 2023 in Abuja.

A statement by the Special Assistant to the Minister on Public Affairs, Dr James Odaudu said the idea of the regular meetings has been to ensure that all industry Stakeholders are carried along, and make inputs in the development and implementation of programmes and policies for the success of the industry.

The statement also explained that the Stakeholders’ Forum, the 10th of the kind, is to bring together all relevant Industry Players to brainstorm on the Policies and Programmes that have, and will continue to move the nation’s aviation industry forward and set it as one of the best in the global aviation community.

“The Forum will assist the Federal Ministry of Aviation and all its Agencies to have direct contact with the very important Stakeholders in and outside the industry, articulate ideas on the way forward and brainstorm on the developments within the sector as a whole.

“The Forum is also expected to afford the Stakeholders another opportunity to ventilate their opinions on the journey so far, and ensure that policies and programmes implemented in the aviation industry mirror the expectations of Nigerians, and truly lead to the socioeconomic and national development of the nation”.

It quotes the Minister as saying that the Forum will also seek to provide answers to pertinent questions, provide sensitisation and clarifications on policies and programmes, provide awareness on activities of government and non-governmental organisations in the industry.

The Forum which is expected to be declared open by the Vice President, Professor Yemi Osinbajo will bring together all relevant industry players within and outside the industry namely; The Ministers of Finance, Budget and National Planning, Labour and Employment, Health, Agriculture, Transportation and Environment.

Also expected at the Forum, aside the regular aviation sector players, are the Secretary to the Government of the Federation, the Head of Civil Service of the Federation, Accountant General of the Federation, Chairman, National Salaries, Income and Wages Commission, Director-General, Budget Office, Presidential Committee on Salaries, and CEOs of Media establishments.

According to Odaudu, Senator Hadi Sirika, since assumption of office as Minister of Aviation, has made it a point of duty to hold regular consultations with Stakeholders in the industry including Airline Operators, Labour unions, service providers, regulators etc, especially on the implementation of the Aviation roadmap which was put in place by the Buhari administration.

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Foreign Airlines Trapped Funds Rise to $743m, as Aviation Minister Assures IATA of Intervention

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By Aduku Odaudu

Despite government’s past efforts to tackle the issue of blocked funds of foreign airlines, the amount has increased to $743,721,097 from $662m in January 2023, the the International Air Transport Association has reported.

In a letter presented to the Minister of Aviation, Senator Hadi Sirika, signed by the Regional Manager West and Central Africa, Dr Samson Fatokun, IATA called on the minister to intervene so the foreign airlines can repatriate their funds.

“For over a year, Nigeria has been the country with the highest amount of airline-blocked funds in the world” the letter indicated.

IATA reckoned that the “trapped funds sends a strong message against FD! The increasing backiog of international airlines blocked funds in Nigeria sends a strong message against foreign direct investment (FD!) in Nigeria. Potential investors are reading from the plight of the airlines that they would not be able to expatriate their funds from Nigeria even al this moment when Nigeria is expecting investments in the concession of some of its prominent airports.”

Dr. Samson Fatokun said that it’s important Nigeria respect contractual obligations Foreign airlines fly into Nigeria within the legal framework of the Bilateral Air Service Agreement (BASA) signed between their countries and the Federal Republic of Nigeria.

The IATA/Foreign Airlines delegation with Senator Hadi Sirika and the Permanent Secretary, Dr Emmanuel Meribole

He noted that it is agreed in those BASAs that Nigeria will facilitate the repatriation of.the funds.

He said this has also led to high-ticket prices to mitigate the increasing backlog of these funds in Nigeria and its impact of their cash flow, some airlines have decided to reduce the number of their frequencies, or the number of seats made available for sale in the Nigerian market.

Commenting, the Minister of Aviation, Sen. Hadi Sirika said the “government is concerned especially the ministry of aviation. I am sure you are all aware that this is not a problem that is currently within the leverage of the ministry of aviation if it were to be here it would be resolved today.”

“Unfortunately, it sits somewhere else more with the Central Bank of Nigeria who in turns keeps saying it is between them and the commercial banks” he further explained.

“We will do the very best we can to resolve this matter soon” he promised.

“We will begin from today, we have been doing the best we can because we understand the importance of the services being provided and also the legitimacy of the request because it is something that is backed by the Bilateral and multi-lateral Agreements and something that is the law itself so there is no reason why it should continue to remain” he assured.

Aviation Permanent Secretary, Dr Emmanuel Meribole, Minister of Aviation, Senator Hadi Sirika and the IATA Regional Manager for West and Central Africa, Dr Samson Fatokun during the visit

He also urged the airlines to bear with certain situations, adding that the way they deal with the matter is not the best way to deal with issues of sovereign and in this case some of the airlines that decide not to come to Nigeria, it is a commercial decision you take which is fine but to do other things to show some resentment to the country is not acceptable.

“Some go to the extent of saying that they are not allowing Nigerians to go or no visa issuance which I think is anniversary and uncalled for; we do know that we need your services but we are very convinced that you need our market more that we need your services. I think Nigeria should be treated with some level of dignity and honour” he quarried.

“From your document here Qatar Airways has $208m blocked, Ethiopian Airline with $117m blocked. These are the major tickets and IATA $216m which is the highest while Emirates is $35m” he said.

“I know certain payments have been made. At some point when we decided to closed down Abuja airport for rehabilitation and to move to Kaduna. All of you foreign airlines refused to go to Kaduna which shows that you are only interested in what you can gain from a country which is the money but you are not willing to give anything.

“Some of you approached me and said you do not have were your crew will stay so you can fly to Kaduna. But we provided hostels that were better equipped than most hotels in town, good catering services, still you refused to identify with us”

He charged them to always adopt the give-and-take attitude in business relationships.

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