Global Courant
In an ever-connected world where global travel has become an integral part of our lives, the airline industry plays a vital role in shaping economies. From 2020, the aviation industry will be supported at least 65.5 million jobs worldwide and $2.7 trillion (3.6%) of the world’s gross domestic product (GDP). If aviation were a country, it would rank 20th in GDP by size. The industry is expected to grow $333.96 billion in 2023 to $386.21 billion in 2028. Certainly, there is a thriving market eagerly awaiting exploration.
In July 2018, Nigeria embarked on a journey to penetrate the global aviation market, with the unveiling of the country’s proposed flag carrier at the Farnborough Air Show in England. Five years later, the proposed national airline landed at Abuja airport, sparking a great deal of emotion among Nigerians. While some expressed delight at the long-awaited launch of a national airline, others questioned the logic of starting with just one plane. But there’s more. As citizens struggled with their feelings about the lone plane, it emerged that Nigeria was not the owner of the plane. Instead, it was borrowed from Ethiopian Airlines and renamed Nigeria’s.
Dapo Olumide, MD of Nigerian Air, made the case during an investigative hearing, revealing that it had hired the airline from Ethiopian Airlines to reveal its logo. “We have institutional investors who are not in aviation, but who put their money down for 10 to 15 years, so they have to see what the actual plane will look like. So we brought it here to show them what the plane will look like, and then the social media dimension came in,” he said.
He stressed that the case was misinterpreted by mischievous people. We are not yet at the point of operating the airline.
Nigeria’s lofty dream
It is important to recognize that at one point in its history, Nigeria had a thriving national airline. The now defunct Nigeria Airways was established in August 1958, following the dissolution of West African Airways Corporation (WAAC). It finally ceased operations in 2003 due to military raid, mismanagement, corruption and bad debt.
Defunct Nigerian Airways. PC: The Guardian
In its heyday, Nigeria Airways had at least 30 aircraft. Nigeria Airways was later succeeded by Virgin Nigeria and the ground facilities were taken over by Arik Air. Despite the obstacles it faced, Nigeria Airways’ legacy is a beacon of hope and symbolizes the country’s aspirations for a robust and prosperous national carrier.
At the moment, a lot of energy has been put into the development of the new Nigeria Air, which gives hope for its successful realization. The proposed airline would need it $8.8 million for preliminary costs and $300 million for initial operations. Nigeria envisions a fleet of 35 aircraft over the next five years, with the unveiling of the inaugural ‘loaned’ aircraft marking the start of this ambitious endeavor.
Last July, the Federal Executive Council approved the leasing of three aircraft, an important step towards the start of operations. However, amid ambitious ambitions and diligent efforts, challenges have emerged.
Ethiopian Airlines is a major investor in Nigeria Air, with a 49 percent Nigerian private investors hold 46 percent of the stake and the federal government 5 percent. The equity rates have since provoked mixed reactions, as many believe this would pose an existential threat to domestic airlines and the entire airline industry. A lawsuit has been filed by local airlines in the country, claiming they can manage Nigerian Air more effectively than a foreign airline.
Why do countries need a national airline?
Despite the cost, you might wonder why a country like Nigeria, with its dwindling resources, needs a national airline when it has been without for years. However, there are compelling reasons to consider. First, a national airline catalyzes economic growth and development. Its presence can play a vital role in facilitating trade and business contacts, attracting foreign investment and boosting the growth of related industries such as hospitality, transportation and tourism services.
In addition, establishing a flag carrier allows countries to retain revenue that would otherwise be lost to overseas operations. For example, Nigeria loses approx $2.3 billion on annual capital flights to foreign airlines. By owning a flag carrier, a significant portion of this previously lost revenue would be retained within Nigeria’s economy and potentially contribute to economic growth and development.
Nigeria Air on the tarmac of Abuja
Also important is the fact that a national airline helps facilitate the repatriation of citizens during crises so that they can return home safely. In times of conflict or civil unrest, when commercial flights may be disrupted or unavailable, a national carrier can step in to provide evacuation services and return citizens to their home countries.
For example, when Nigerian students were trapped in the Russo-Ukrainian war and war-torn Sudan, a national airline would have helped expedite the repatriation process. So, rather than relying solely on the benevolence of private airlines like Air Peace, which may face delays and logistical hurdles, a national airline could have facilitated a more efficient and coordinated rescue operation. This ensures the safety and well-being of citizens and demonstrates the government’s commitment to protecting its people and providing needed assistance in difficult times.
Finally, a national airline gives the country a sense of national pride. It is a tangible representation of the nation’s achievements and its ability to compete in the international space.
As Nigeria continues to grapple with the concept of its proposed Nigerian Airway, we eagerly await the swift realization of this idea, enabling its citizens to reap the benefits of belonging to “Africa’s Giant”.
