FG’s investment in Nigeria Air is $12.5 million – Transaction Adviser

The Nigerian Government’s investment as startup funding for Nigeria Air is worth $12.5 million.

Prof. Tilmann Gabriel, who served as the Transaction Advisor for the controversial National Carrier, revealed that the investment was in line with the Federal Government’s 5 per cent share in the project.

Gabriel insisted that the process leading to the formation of the airline had been transparent, unlike the claim by some stakeholders in the sector, especially the Airline Operators of Nigeria (AON).

“The Transaction Adviser insisted that with the total investment sum, the airline had a solid financial foundation.”

He stressed that the government had ensured a clear ownership structure for the airline under the Public Private Partnership (PPP).

The Transaction Adviser insisted that with the total investment sum, the airline had a solid financial foundation.

According to him, Nigeria Air has the strategic direction, with a solid business plan for the next 10 years with a total start-up budget of $250 million.

He insisted that Nigeria Air 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 the airline operation.

“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.”

Besides, Gabriel explained 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.”

The Transaction Advisor also disclosed that the Air Operators’ Certificate (AOC) 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 (NCAA), which would enable it to operate as a scheduled operator.