Local airline operators lament loses over failed national carrier

Domestic airline operators said they lost business opportunities and multi-billion naira investment due to government’s plan to float a national airline, Air Nigeria which was suspended on Wednesday.

The national carrier was also cited as one of the reasons for the withdrawal of three different investors who had earlier indicated interest to invest in Aero Contractors, which AMCON put up for sale since early last year.

The Chief Executive Officer of Aero Contractors, Captain Ado Sanusi, who confirmed the effect of the planned national airline on other operators, said many investors who were attracted to invest in Aero said that “the problem we are facing is that we don’t want to compete with your national airline.”

Industry consultant and CEO of Belujane Konsult, Chris Aligbe, also said the suspension of the national carrier project has wide ramifications.

He said what happened is a sad commentary on Nigeria when the huge amount of money lost to the project since the plan to set up a new airlines from the past years till now is considered.

“We have already lost West African hub to Accra, Ghana. We are also not going to benefit effectively from Single African Air Transport Market (SAATM) without a national airline. So the suspension has wide ramification because no foreign airline can build a hub for you,” he said.

An economist and Managing Director of Financial Derivatives Company Limited, Bismarck Rewane had earlier described the national carrier project being funded by government as misplacement of funds.

“Nigeria’s total budget for this year is $26 billion, so I don’t know why government should invest $300 million as seed capital in an airline you are not sure will make a return on investment.”