4 Play: If there were sound business reasons for establishing a national carrier, why is the Govt getting involved in the minutiae of setting this up?

Arik, any of the other local operators or an entirely new private sector owned local airline can function as one if there was a business need for this.

Among the aircraft types that would be operated by the national airline include Embraer, Bombardier and Boeing.

ugojamali: Why is nairaland filled with over zealous kids who don't read posts properly before commenting. The post clearly states that the federal government will not invest money in the carrier and will only own a limited stake in it. It will practically be driven by private investors.

So the issue here is getting the so called private partners not FG wasting her money!!!!

Lilimax:
You've made your point agreed but the level of abusing your
elder this way shows your height of irresponsibility.
Refrain from this

Acelifted:

Boeing again? with all the kata-kata that aircraft has being causing around the globe? abeg ooo.

naija_swag: They better acquire 20 brand new planes than 50 second new that will crash land everywhere.

ujchief: I didn't bother reading the entire epistle. I just read the first paragraph which states that the airplanes will be delivered before the end of next year!

Datz all!

Mekky2010: National Carrier to Begin Operations with 50 Aircraft

 Stella Oduah, Aviation Minister

Chinedu Eze

The federal government and its private investor partners may have concluded that the new national carrier, known as Nigeria One, would start operation with 50 aircraft that would be delivered before the end of next year.

Among the aircraft types that would be operated by the national airline include Embraer, Bombardier and Boeing.

THISDAY gathered from authoritative sources on Wednesday that while Embraer short haul aircraft types would be used for domestic operations, medium haul Bombardier would be used for regional services and Boeing planes would be used for long haul international flights.
All these aircraft would be delivered from the manufacturers, but it is not known yet whether they would be leased or they would be acquired by outright purchase.

As government is planning on how to establish the airline, it is also brainstorming on route development and THISDAY learnt that right now the body set out to establish the airline is meeting with some airlines for possible code share and other partnership with the future airlines, and in recognition of this the federal government is streamlining its bilateral service agreements with individual countries, aware that it would soon have its national carrier.

As the Ministry of Aviation has reiterated, the federal government does not intend and will not fund the establishment of the airline as it has designed an arrangement where the airline would be funded on public private partnership (PPP).

The private sector will drive the airline while government intends to own less than 25 per cent equity while significant percentage of the equity would be sold to the core investor, which is an international carrier, that will also influence the establishment of a maintenance, repair and overhaul (MRO facility) that would be completed shortly after the take-off of the national carrier.

THISDAY learnt that an international carrier from the Middle East has indicated interest to partner the airlines and an international business tycoon may put his money in the airline as a significant investor.

In spite of the bleak history of airline operation in Nigeria and the failed Virgin Atlantic and Virgin Nigeria partnership, the plan to attract foreign investors for the new national carrier attracted surprising enthusiasm from overseas.

This is attributed to the burgeoning air transport market in Nigeria, which an insider from one of the major airlines said would explode when effective and consistent competition crashed the fares to domestic destinations, “which a successful national carrier will do.”

The source told THISDAY, “We have concluded plans to acquire 50 aircraft. Yes, it is good to start small but we don’t want to do that; we want to hit the ground running because we know the market is there. I know that it will surprise you to know that an international airline from the Middle East has invested in the national carrier together with other rich investors from outside Nigeria. Our strategy is that it will be operated on PPP. FG is not investing any money but will not have many shares.”

On how organisations and individuals are investing in the new airline, the source said, “What we are doing is that we are selling shares on paper until the company is incorporated and the shares are being sold in percentages. After buying the shares you will then know the authorised shares.”

Many Nigerians are sceptical about the planned national carrier; very few are giving it the chance to succeed due to hind sight, including the parlous history of Nigerian Airways, but the source told THISDAY that such cynicism was to be expected because “It is a typical Nigerian attitude because of the people that ran organisations aground in the past. They lacked expertise and they did not want to seek expertise. They were not really sincere but this one is different.”

http://www.thisdaylive.com/articles/national-carrier-to-begin-operations-with-50-aircraft/153099/

thoth:

Please who are this private investor partners and what is their share in the whole deal? what is the FG investing and what are the Private Investors Investing ? we need numbers and information.
It will just be like the telecom and power sectors where the FG provides 90% or more of the capital and the company runs and takes 95% of the revenues.

omonnakoda:
Nigeria that borrowed $2billion this week will buy 50 aircraft next year . .....

ujchief: I didn't bother reading the entire epistle. I just read the first paragraph which states that the airplanes will be delivered before the end of next year!

Datz all!

rozayx5:





you take action they talk , you dont take they stiill talk

Nigerian's the hardest set of people to please in this world
SMH

NNMUU: I don't like the name "Nigeria one".
I would have preferred Nigeria Airways...... Either way good news though

The federal government and its private investor partners may have concluded that the new national carrier, known as Nigeria One, would start operation with 50 aircraft that would be delivered before the end of next year.

Samabu07: A boeing should go for $200m. For 50 aircraft it would gulp a whooping $10bn. There should be discount to that amount.
The question is, would Nigeria create this aviation n other related jobs for 85% of her citizens? Is this huge spending worth it.
GEj signed a $1.1b deal with China that would see to 4 New Airports created. Won't this national carrier liquidate in the future? We should use our resources wisely. Nigerians deserves a fair treatment.

Billionaires:

You are the only person I have to respond to, cos it seems you can spell correctly, meaning you've got something up there. Now, Nigeria One is largely financed by international consortium, the government retains approx. 25% ownership for regulative purpose. We have just signed a deal of $1.1b, which is part of a $3b loan from China on a 3% APR with moratorium of 25yrs. This is the best credit facility ever. Highly commendable.

Judging by the comments on Nairaland, its best to say, that this forum is no more a place for people with discerning minds, but a gathering of mentally lacking never-do-wells. I feel ashamed that the Mods and SuperMod have allowed this site to degenerate thus far, instead of deleting monika of mentally disabled commentators.