Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,151,341 members, 7,811,988 topics. Date: Monday, 29 April 2024 at 05:03 AM

Proposed National Airline: What Model Would Work? - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / Proposed National Airline: What Model Would Work? (2193 Views)

Establishing National Airline Not A Priority Of My Government – Buhari / FG Sets Up Committee On National Airline / Buhari Orders ‘quick Action’ On New National Airline (2) (3) (4)

(1) (2) (Reply) (Go Down)

Proposed National Airline: What Model Would Work? by Nobody: 1:29am On Nov 04, 2014
The Aviation minister, Osita Chidoka, recently stated that the Federal Government is still desirous of setting up a national carrier. Unlike the defunct Nigeria Airways, the new national carrier would be largely a private sector affair.

Should the airline be 100% FG owned, partially owned by the FG, or should it 100% private?
Re: Proposed National Airline: What Model Would Work? by Prodigee: 1:41am On Nov 04, 2014
undecided
Re: Proposed National Airline: What Model Would Work? by ichidodo: 2:11am On Nov 04, 2014
[b] In my Opinion,A national airline is how a nation represents itself along with flags,currency and national anthem.The defunct Nigeria Airways was a perfect example with Green-White-Green colors of its national flag painted on every plane,it looked elegant with a perfect symbol of statehood-before some 'backstabbers' betrayed some people and cannibalized that National edifice with the consent/along with 'other people'- but in a case of a wholly government ownership the bureacratic snags of overregulation, overstaffing, excessive
debt, political interference and poor
management become very common...but we need a National air-line regardless...So,we propose a major precondition that is having a strong champion in the government and a genuine wish for reform.Also it wouldn't be a bad idea to get the tourism board involved inaddition to investment funds with the trickiest part of finding a seasoned player with access to global networks and a low-cost base. Getting the right partner on board will involve complex negotiations.But a good transaction advisor can guide government through this process and other reform processes,hell they can even help with poorly-performing National carriers if you ask them to...So this Airline matter should be a joint private-public sector ish.[/b]
'"

1 Like

Re: Proposed National Airline: What Model Would Work? by Nobody: 2:47am On Nov 04, 2014
^^
I kinda agree with you. I'd prefer the ownership structure of the national carrier to be as follows:

FG - 20%

Nigerian citizens and institutions - 50%

Foreign citizens and institutions - 30%

A start-up capital of around $2bn would put the airline on a solid financial footing. The airline's primary hubs would be Lagos and Abuja; whilst its secondary hubs would be Port Harcourt, Enugu and Uyo.

As for the its international routes, I will suggest flights to these cities:

North America - Vancouver (Canada), Houston, San Francisco, *Los Angeles (United States).

South America - São Paulo (Brazil)

Europe - London, Paris, Amsterdam, Milan, Brussels, Barcelona

Africa - Johannesburg, Accra, Abidjan, Dakar, Yaounde, Nairobi, Casablanca.

Asia - Hong Kong, Kuala Lumpur, Singapore, Shanghai, Tokyo, Mumbai, Abu Dhabi.

*Seasonal flights to Los Angeles, and Jamaica should also be explored.
Re: Proposed National Airline: What Model Would Work? by Rawani: 2:53am On Nov 04, 2014
First of all, replace the traffic warden Osita with a technocrat from the aviation industry who can outline current aviation best practices and adapt it to the peculiarities of Nigeria, to give a clearer insight which will guide the determination of the most efficient and effective model for our national carrier. You can't plant beans and expect apples.

1 Like

Re: Proposed National Airline: What Model Would Work? by IGBOSON1: 3:56am On Nov 04, 2014
Rawani:
First of all, replace the traffic warden Osita with a technocrat from the aviation industry who can outline current aviation best practices and adapt it to the peculiarities of Nigeria, to give a clearer insight which will guide the determination of the most efficient and effective model for our national carrier. You can't plant beans and expect apples.

^^^Right from the time of Nigeria Airways, the aviation sector has seen many so called 'technocrats from the aviation industry', yet this didn't prevent the airline from going under! The man you derisively call a traffic warden acquitted himself creditably as head of FRSC; so much so that countries like Ghana and Sierra Leone have asked for Nigerias' assistance in setting up a similar road/traffic management system in their respective countries! Also, a Nigerian issued drivers license is now acceptable in a number of European countries, and this is partly thanks to the the 'traffic wardens' leadership credentials!

6 Likes

Re: Proposed National Airline: What Model Would Work? by Nobody: 4:21am On Nov 04, 2014
IGBOSON1:


^^^Right from the time of Nigeria Airways, the aviation sector has seen many so called 'technocrats from the aviation industry', yet this didn't prevent the airline from going under! The man you derisively call a traffic warden acquitted himself creditably as head of FRSC; so much so that countries like Ghana and Sierra Leone have asked for Nigerias' assistance in setting up a similar road/traffic management system in their respective countries! Also, a Nigerian issued drivers license is now acceptable in a number of European countries, and this is partly thanks to the the 'traffic wardens' leadership credentials!
Mr. Chidoka doesn't need to be an aviation expert in order to set up a national carrier.

4 Likes

Re: Proposed National Airline: What Model Would Work? by Rawani: 7:41am On Nov 04, 2014
IGBOSON1:


^^^Right from the time of Nigeria Airways, the aviation sector has seen many so called 'technocrats from the aviation industry', yet this didn't prevent the airline from going under! The man you derisively call a traffic warden acquitted himself creditably as head of FRSC; so much so that countries like Ghana and Sierra Leone have asked for Nigerias' assistance in setting up a similar road/traffic management system in their respective countries! Also, a Nigerian issued drivers license is now acceptable in a number of European countries, and this is partly thanks to the the 'traffic wardens' leadership credentials!

Going by this logic, a driver that has distinguished himself on the road can be handed a 747, as he will transfer his excellent credentials to the cockpit. After all he 'acquitted himself creditably' *smh*

1 Like 1 Share

Re: Proposed National Airline: What Model Would Work? by Nobody: 7:54am On Nov 04, 2014
Interesting discussions here, following
Re: Proposed National Airline: What Model Would Work? by Nobody: 7:58am On Nov 04, 2014
It could be called "the new" Nigeria Airways cool, but it shouldn't inherit the problems of its forerunner, such as over-staffing and general mismanagement.
Re: Proposed National Airline: What Model Would Work? by LordMecuzy(m): 8:00am On Nov 04, 2014
It Shld be 100% owned By Bokoharam

Cos To me for now, We Don't Have a Federal government
Re: Proposed National Airline: What Model Would Work? by Greatomotoy: 8:18am On Nov 04, 2014
The Presidency should support this project by donating 6 out of his 10(abi e don add more) private jet
Re: Proposed National Airline: What Model Would Work? by Rawani: 8:19am On Nov 04, 2014
Our wise elders have said when a child falls, he looks forward and cries, but an adult will look back to see what tripped him.

Going by the history of our national carriers since 1958, there has been one common denominator - they have always been managed by a number of foreign companies, including British Airways, KLM and South African Airways. The latest pull out by Virgin Airlines that left us with a feeble Air Nigeria buttresses this point.

What I would suggest is that we should have an incubation period, during which aggressive training and development of indigenous talent should be pursued, who would understudy other successful indigenous airlines such as Qantas of Australia, and then allowed to replicate the model. Our external partnerships will then be limited to technical partnerships, maintenance and training & development. Management should be purely indigenous for strategic reasons.

2 Likes

Re: Proposed National Airline: What Model Would Work? by ichidodo: 8:26am On Nov 04, 2014
CFCfan:
^^
I kinda agree with you. I'd prefer the ownership structure of the national carrier to be as follows:

FG - 20%

Nigerian citizens and institutions - 50%

Foreign citizens and institutions - 30%

A start-up capital of around $2bn would put the airline on a solid financial footing. The airline's primary hubs would be Lagos and Abuja; whilst its secondary hubs would be Port Harcourt, Enugu and Uyo.

As for the its international routes, I will suggest flights to these cities:

North America - Vancouver (Canada), Houston, San Francisco, *Los Angeles (United States).

South America - São Paulo (Brazil)

Europe - London, Paris, Amsterdam, Milan, Brussels, Barcelona

Africa - Johannesburg, Accra, Abidjan, Dakar, Yaounde, Nairobi, Casablanca.

Asia - Hong Kong, Kuala Lumpur, Singapore, Shanghai, Tokyo, Mumbai, Abu Dhabi.

*Seasonal flights to Los Angeles, and Jamaica should also be explored.
Incentives should be lucrative enough to get seasoned Air-line companies interested therefore we propose ownership stocks split equally at both ends with each party reserving the interest of diluting stocks via IPOs.This venture will not only be a symbol of national pride but a cash cow to all parties involved including the Treasury....
Re: Proposed National Airline: What Model Would Work? by dridowu: 8:30am On Nov 04, 2014
I think Nigeria government should own about 30-40% of the Nigeria while the remaining percent should be own by private company. The government of Nigeria should start by contributing 9 of the presidential aircraft. An aviation expert should lead the government team. Government also should not let it to turn to political/tribal/religious settings.
Re: Proposed National Airline: What Model Would Work? by Nobody: 8:42am On Nov 04, 2014
My honest opinion is not under this present administration. Tell me one agency or institution that works right under GEJ.
Re: Proposed National Airline: What Model Would Work? by IGBOSON1: 10:48am On Nov 04, 2014
Rawani:


Going by this logic, a driver that has distinguished himself on the road can be handed a 747, as he will transfer his excellent credentials to the cockpit. After all he 'acquitted himself creditably' *smh*

^^^You're not making sense!......Compare like-for-like!!

There's the management/administrative part of the company on the one hand; and on the other, there's the technical/practical part where targeted/specialized training and know-how is required! A seasoned administrator can manage a hospital well without being a medical doctor; likewise, someone who has 'distinguished himself' in management/administration could equally manage an airline!

2 Likes

Re: Proposed National Airline: What Model Would Work? by Rawani: 12:26pm On Nov 04, 2014
IGBOSON1:


^^^You're not making sense!......Compare like-for-like!!

There's the management/administrative part of the company on the one hand; and on the other, there's the technical/practical part where targeted/specialized training and know-how is required! A seasoned administrator can manage a hospital well without being a medical doctor; likewise, someone who has 'distinguished himself' in management/administration could equally manage an airline!

My friend, again your logic is flawed.

A manager without technical understanding and relevant experience cannot effectively manage an airport, not to talk of an airline because apart from being usurped by technical personnel and inability to compete favorably with better manned organizations, he will also reduce organizational efficiency as a result of excessive dependence on consultants among other factors.

The world has moved beyond Taylorism to more dynamic management styles. Your presumption is based on the scientific management model which is obsolete and belongs with the dinosaurs. No wonder our public institutions are rotting by the day.

1 Like

Re: Proposed National Airline: What Model Would Work? by Nobody: 5:04pm On Nov 04, 2014
ichidodo:
Incentives should be lucrative enough to get seasoned Air-line companies interested therefore we propose ownership stocks split equally at both ends with each party reserving the interest of diluting stocks via IPOs.This venture will not only be a symbol of national pride but a cash cow to all parties involved including the Treasury....
The issue with your idea is that the national carrier may find it difficult to fly to the US.

I recall the wrangling that Virgin Nigeria had to go thru in order for the US DOT to grant them approval to ply American routes. The US DOT kept insisting that VN was not truly a Nigerian airline because Branson, via Virgin Atlantic, held 49% ownership of the carrier.
The Americans essentially thought that VA was seeking to increase its frequency to US routes through the backdoor.

I think it was only Aso Rock intervention that finally paved the way for VN to start flying into the US.

That's why I think foreign shares should be limited to 30%, or a max of 40%.
Re: Proposed National Airline: What Model Would Work? by ichidodo: 5:46pm On Nov 04, 2014
CFCfan:

The issue with your idea is that the national carrier may find it difficult to fly to the US.

I recall the wrangling that Virgin Nigeria had to go thru in order for the US DOT to grant them approval to ply American routes. The US DOT kept insisting that VN was not truly a Nigerian airline because Branson, via Virgin Atlantic, held 49% ownership of the carrier.
The Americans essentially thought that VA was seeking to increase its frequency to US routes through the backdoor.

I think it was only Aso Rock intervention that finally paved the way for VN to start flying into the US.

That's why I think foreign shares should be limited to 30%, or a max of 40%.
Virgin Atlantic via its owner have always been regarded as a 'bucanneering' prospect as far as American bilateral air-line interests are concerned therefore we suppose this snag you opined must be peculiar to Richard Branson's blond hair, we can also suppose government take on board a less bilateral-agreement toxic company maybe Lufthernsa?,we can be sure 50%? should get this efficient german air-liner on-stream...The key word here is stability,having a third-party stock option will leave for unscrupulous hedgefunds,Politicians,Money-bags to corner much of that equity which might not be in the venture's interest look at what happened to Econet..till today that company is still reeling from not wholly owning its stock...as its nigerian moneybag stock holders kept on fustrating every technical partner after another from taking its telephony to the next level....Air-line biz is much more volatile than GSM therefore a stable two-way stock option gurantees equity,stability and longevity.
Re: Proposed National Airline: What Model Would Work? by Nobody: 11:06pm On Nov 04, 2014
ichidodo:
Virgin Atlantic via its owner have always been regarded as a 'bucanneering' prospect as far as American bilateral air-line interests are concerned therefore we suppose this snag you opined must be peculiar to Richard Branson's blond hair, we can also suppose government take on board a less bilateral-agreement toxic company maybe Lufthernsa?,we can be sure 50%? should get this efficient german air-liner on-stream...The key word here is stability,having a third-party stock option will leave for unscrupulous hedgefunds,Politicians,Money-bags to corner much of that equity which might not be in the venture's interest look at what happened to Econet..till today that company is still reeling from not wholly owning its stock...as its nigerian moneybag stock holders kept on fustrating every technical partner after another from taking its telephony to the next level....Air-line biz is much more volatile than GSM therefore a stable two-way stock option gurantees equity,stability and longevity.
Okay. A 50-50 deal between Lufthansa and Nigerian private investors seems to be workable. I think the new carrier could also be able to fly to German cities (or city), just like the Arik and Emirates partnership whereby Arik still does the Lagos-Dubai route.

1 Like

Re: Proposed National Airline: What Model Would Work? by faithin9ja: 1:25am On Nov 05, 2014
All the above comments are foolish and ignorant. Why did we need a so-called national carrier, what stupid pride are projecting. Let's feed the whole country first, provide electricity and security, then we can be proud.

Name any country with a profitable national carrier? The richest, most peaceful countries don't have National carriers but they still have functioning aviation services with decent airports.

Denmark, United States, Argentina, Britain, Spain, Belgium, Mexico, Italy name their national carriers (please don't name the private sector airlines that have no business with the government)
Re: Proposed National Airline: What Model Would Work? by Nobody: 2:21am On Nov 05, 2014
faithin9ja:
All the above comments are foolish and ignorant. Why did we need a so-called national carrier, what stupid pride are projecting. Let's feed the whole country first, provide electricity and security, then we can be proud.

Name any country with a profitable national carrier? The richest, most peaceful countries don't have National carriers but they still have functioning aviation services with decent airports.

Denmark, United States, Argentina, Britain, Spain, Belgium, Mexico, Italy name their national carriers (please don't name the private sector airlines that have no business with the government)
Kenya airways and Ethiopian are pretty profitable. Emirates (despite being a "govt corporation"wink is quite profitable too.
Re: Proposed National Airline: What Model Would Work? by faithin9ja: 3:12am On Nov 05, 2014
CFCfan:

Kenya airways and Ethiopian are pretty profitable. Emirates (despite being a "govt corporation"wink is quite profitable too.

So our models should be Kenya and or Ethopia? Emirates, Ethical and the other Gulf airlines are 'vanity' models owned by billionaire country leaders such as their ownership of Manchester City.

Nigeria does NOT need a national carrier, any private business that thinks it can run a profitable and SAFE airline can do so, it does not need any identity with Nigeria.

Our prestige venture should be the best health care in Africa not airline that 90% of the people will never use.

1 Like

Re: Proposed National Airline: What Model Would Work? by chenkov(m): 3:56am On Nov 05, 2014
Rawani:


Going by this logic, a driver that has distinguished himself on the road can be handed a 747, as he will transfer his excellent credentials to the cockpit. After all he 'acquitted himself creditably' *smh*


There is a difference between managing an airline and piloting an aircraft,so think deeply!
Re: Proposed National Airline: What Model Would Work? by SLIDEwaxie(m): 4:50am On Nov 05, 2014
CFCfan:

Mr. Chidoka doesn't need to be an aviation expert in order to set up a national carrier.
mr. Chidoka cld help us with a successful 'currently non-existing' federal transport sector while an aviation savvy from a successful private airline cld head this sector...it's a political appointment, the minister doesn't need to be a civil servant...
Re: Proposed National Airline: What Model Would Work? by ichidodo: 5:40am On Nov 05, 2014
CFCfan:

Okay. A 50-50 deal between Lufthansa and Nigerian private investors seems to be workable. I think the new carrier could also be able to fly to German cities (or city), just like the Arik and Emirates partnership whereby Arik still does the Lagos-Dubai route.
True that, as a member of the Star Alliance with close to 200 routes,Bayer Lufthansa can technically help Nigeria Airways with the servicing of her Europe,America,middle East and far East Asia commercial routes...
Re: Proposed National Airline: What Model Would Work? by Nobody: 6:56am On Nov 05, 2014
faithin9ja:


So our models should be Kenya and or Ethopia? Emirates, Ethical and the other Gulf airlines are 'vanity' models owned by billionaire country leaders such as their ownership of Manchester City.

Nigeria does NOT need a national carrier, any private business that thinks it can run a profitable and SAFE airline can do so, it does not need any identity with Nigeria.

Our prestige venture should be the best health care in Africa not airline that 90% of the people will never use.
I agree that our health-care system should be the envy of Africa, however, a national carrier could massively spur the development of indigenous aviation manpower.
Re: Proposed National Airline: What Model Would Work? by daveP(m): 8:14am On Nov 05, 2014
CFCfan:
^^
I kinda agree with you. I'd prefer the ownership structure of the national carrier to be as follows:

FG - 20%

Nigerian citizens and institutions - 50%

Foreign citizens and institutions - 30%

A start-up capital of around $2bn would put the airline on a solid financial footing. The airline's primary hubs would be Lagos and Abuja; whilst its secondary hubs would be Port Harcourt, Enugu and Uyo.

As for the its international routes, I will suggest flights to these cities:

North America - Vancouver (Canada), Houston, San Francisco, *Los Angeles (United States).

South America - São Paulo (Brazil)

Europe - London, Paris, Amsterdam, Milan, Brussels, Barcelona

Africa - Johannesburg, Accra, Abidjan, Dakar, Yaounde, Nairobi, Casablanca.

Asia - Hong Kong, Kuala Lumpur, Singapore, Shanghai, Tokyo, Mumbai, Abu Dhabi.

*Seasonal flights to Los Angeles, and Jamaica should also be explored.
i hope as the FG may have 20percent that it should not be expensive for its citizens.


They can start by making it affordable and yet standard service like before.

Mumc na book of records o grin

oga mi i hail o! smiley
Re: Proposed National Airline: What Model Would Work? by Nobody: 8:25am On Nov 05, 2014
daveP:
i hope as the FG may have 20percent that it should not be expensive for its citizens.


They can start by making it affordable and yet standard service like before.

Mumc na book of records o grin

oga mi i hail o! smiley
Yes, the airline could introduce low fares for the first few months of operations to attract customers of the other carriers.
Re: Proposed National Airline: What Model Would Work? by daveP(m): 8:42am On Nov 05, 2014
CFCfan:

Yes, the airline could introduce low fares for the first few months of operations to attract customers of the other carriers.
i pray it kicks off without partiality.

It should be dont in such a way that it would beat Ethiopian Ailines record in gathering ground internationally.


My Sport boss, today's another voting day for ms Nl......
Re: Proposed National Airline: What Model Would Work? by faithin9ja: 10:19am On Nov 05, 2014
CFCfan:

I agree that our health-care system should be the envy of Africa, however, a national carrier could massively spur the development of indigenous aviation manpower.

A National carrier does nothing to help aviation business, probably the biggest single country aviation industry is the United States, what is the America national carrier?

Vanity vanity all is vanity. less than 10% of Nigerians can partake in air travel, please let us have 70% of our roads as good as German roads first. Let the private sector sort out aviation.

Its laughable the comments being made on 'proposed routes and airfares ' by people who don't have a clue how much aviation fuel costs, how much it costs to lease a plane, how much it costs to pay a crew, how much is the different airport tax, how many potential passengers there are on the so-called profitable Lagos -London route.

For your information we do not have more than 5 direct flights from Lagos to London daily, that's is less than 3000 passengers, meanwhile there are no less than 40 flights a day from London to New York and you want to compare?

(1) (2) (Reply)

ESSENCO: Buhari's Failed Commodity Price Control Scheme. / Biafra Flag On Building All Over Igboland / Usa Live Town Hall Meeting With Professor Yemi Osinbajo. Live Live Live..

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 71
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.