Arondizuogu:


So we want to buy the lowest Boeing commercial plane abi? And we are targeting 84 destinations at icky off? That plane is phasing out, hope you know.
How will 5 planes deliver 84 destinations? You do know that staff would be paid? The aviation industry would be paid too? $300 million dollars would not go anywhere in starting an airline carrier. Do you even think that anyone u see on nairaland is a riffs raff?

Take time to educate yourself. That 5 planes will be acquired at start up doesn't mean more planes won't be acquired as time passes by. I won't explain every detail about a project that is already in the public realm for you.

transformed:
80*5 equal 400 million

Why didn't you use $55?

SMH for some of you guys.

Phagyrhe:


We are here to learn bro.

Can you please provide one or two examples of those national carriers?

Ethopian Airways is fully government owned.

9jaArea:
This is what patriots do.
Most of the people faulting the unveiled carrier now didn't even make an attempt at it when they were in government.

All of a sudden all Nigerians have turned aviation experts putting up wrong information in the media. The media on its part does more harm than good in this part of the world.

It's a good thing Baba doesn't have time for people like this.

StFU. $150-$300m is not a specific amount. Natuonal Airline is not an attractive investment opportunity for investors.
Per unit cost of Boeing 747-8 passenger plane is about $400m. So their projected $300m is a drop into an ocean.
Now, Naija has no track record of aviation success/hub/delivery. Richard Branson tried and failed.
This has no postive impact on economy of Nigeria since othet airlines are providing that market demand

AZeD1:

Does it make sense that the person who owns 5% of an airline is the one negotiating with aircraft manufacturers?

Yes. It's a "look at an opportunity" situation. Nigeria start the process. Nd then investors see a need to pour their money.

APL33:


Yes. It's a "look at an opportunity" situation. Nigeria start the process. Nd then investors see a need to pour their money.

What opportunity?

PassingShot:

Take time to educate yourself. That 5 planes will be acquired at start up doesn't mean more planes won't be acquired as time passes by. I won't explain every detail about a project that is already in the public realm for you.

Dude they said they are targeting 84 destinations at start up abi? With 5 planes? Small Boeing according to you oooooo? I replied with what you said.

Thank you for clearing the air on this matter. Some Nigerians have decided to jettison common sense in a lame attempt to discredit the Buhari administration. It is well with Nigeria. Buhari has been doing a decent job in the past few months (elections campaigns or not), he should get plaudits when he and his team do something right

PassingShot:
I read with great shock the outright lie tweeted by Mustafa Chike-Obi and posted on the FP of Nairaland (https://www.nairaland.com/4631046/mustafa-chike-obi-former-amcom-boss) about the initial capital for the newly unveiled national carrier - Air Nigeria. The claim by the former AMCON Boss that $300m initial capital for the national carrier represents 5% of the initial capital is not only misleading but mischievous and unpatriotic.

For clarification sake, the $300M is the total initial capital required for the first three years of the airline and it is only 5% (max.) of this amount ($15m) that the FG is obliged to contribute. It's the private investors that will contribute the remaining balance of $285m.

The above position was clearly reported by Reuters here http://www.africanews.com/2018/07/20/nigeria-air-seeks-strategic-partner-to-invest-300// where it clearly stated “The initial capital is likely to be in the range of $US 150 to 300 million, invested in tranches over time from start up through the first years of operation,” a government document stated.

It was also clearly reported by Vanguard here https://www.vanguardngr.com/2018/07/nigeria-air-to-gulp-8-8m-preliminary-cost-300m-as-take-off-cost/ . Punch clarifies the 5% stake of the FG in the Project by stating “The Nigerian Government will not own more than 5% (maximum) of the new National Carrier. Government will not be involved in running it or deciding who runs it,” he said http://punchng.com/breaking-nigeria-unveils-name-of-national-carrier-logo/

Now, if the man who prides himself a mathematician is to be correct with his tweet, is he now saying that the initial capital is $6bn? If $300m is 5%, surely the 100% required initial capital required must be $6bn. Chike-Obi needs to tell us where (if it exists anywhere at all) he got his own figure from.


The tweet by the Mustafa, just as that by Oby Ezekwesili should be of great concern to all patriotic citizens of our country who genuinely seek to see Nigeria develop and succeed. Their tweets are a clear indication that many Nigerians do not mind cutting their nose to spite their face! They hate the president so much and if the total failure of the country is the only thing that must happen to justify their hatred for the president, it's all well and good in their own books.

Mumu county

hungryboy:
should a country in which almost 80% of it population can't afford air transportation be investing in an airline?

Go eat hungry boy.

Arondizuogu:


Dude they said they are targeting 84 destinations at start up abi? With 5 planes? Small Boeing according to you oooooo? I replied with what you said.

80 destinations in total at peak when 50 planes are acquired in the fleet.


Read it up and get educated.

.

PassingShot:

80 destinations in total at peak when 50 planes are acquired in the fleet.


Read it up and get educated.

Looks like they keep spinning different stories everytime. Last I read, they said they were targeting 84 destinations at start up, mostly international..... I'm commenting from what I read!!

With a complicated project plan, dead airports, messed up custom officers, I think the Airline just died.


An average lifespan for airlines in Nigeria is 10years, this one need grace to do 5!


A project plan that requires beer parlour explanations by party asslickers and sycophants..


How can you have 5% stake and control the business? Negotiate for airplanes and set up? OK, what do I know?

AZeD1:


All the above airlines mentioned are all being subsidized by the government. They are providing jobs but at what cost to the country?

Ethiopian Airways is the most profit making African airline.

https://www.google.com.ng/amp/s/www.thisdaylive.com/index.php/2017/08/18/ethiopian-airlines-targets-10bn-revenue-146-destinations-by-2025/amp/

Kenya Airways

https://www.reuters.com/article/kenya-airways-results/kenya-airways-posts-8-88-mln-operating-profit-for-apr-sept-idUSL9N1BX00M

https://www.kenyans.co.ke/news/28012-kenya-airways-2017-financial-report-records-ksh13-billion-operational-profit

Although Air Namibia and RwandAir are recording loses, other are doing great jobs and that should be a sort of motivation that we can set up a great airline too.

AZeD1:


All the above airlines mentioned are all being subsidized by the government. They are providing jobs but at what cost to the country?

Ethiopian Airways is the most profit making African airline.

https://www.google.com.ng/amp/s/www.thisdaylive.com/index.php/2017/08/18/ethiopian-airlines-targets-10bn-revenue-146-destinations-by-2025/amp/

Kenya Airways

https://www.reuters.com/article/kenya-airways-results/kenya-airways-posts-8-88-mln-operating-profit-for-apr-sept-idUSL9N1BX00M

https://www.kenyans.co.ke/news/28012-kenya-airways-2017-financial-report-records-ksh13-billion-operational-profit

Although Air Namibia and RwandAir are recording loses, other are doing great jobs and that should be a sort of motivation that we can set up a great airline too.

hungryboy:
should a country in which almost 80% of it population can't afford air transportation be investing in an airline?

The people who can afford it would afford it, and it would help grow the economy of the country, which in turn would positively affect the lives of everyone including the poor.

Not every venture must be aimed directly at the poor poor and poor before we accept it is good. Nigeria also has a large middle and upper class who need to be catered for.

Arondizuogu:


Looks like they keep spinning different stories everytime. Last I read, they said they were targeting 84 destinations at start up, mostly international..... I'm commenting from what I read!!

Read it again please. 5 planes can't cover Africa region let alone other international routes.

Alphagan:


This is an unfair assessment of Oby, she misfired on the subject of discourse, but hate? Definitely not Oby

It's only hate that would make someone of her calibre and status spew that rubbish. She could have disagreed without saying "it shall fail. It must fail". That tweet only exposed her deep-sitted hatred for the president who's daring to succeed where her belived OBJ failed.

hungryboy:
should a country in which almost 80% of it population can't afford air transportation be investing in an airline?

You sound like poverty has a headquarters in your yard.

Phagyrhe:


Ethiopian Airways is the most profit making African airline.

https://www.google.com.ng/amp/s/www.thisdaylive.com/index.php/2017/08/18/ethiopian-airlines-targets-10bn-revenue-146-destinations-by-2025/amp/

Kenya Airways

https://www.reuters.com/article/kenya-airways-results/kenya-airways-posts-8-88-mln-operating-profit-for-apr-sept-idUSL9N1BX00M

https://www.kenyans.co.ke/news/28012-kenya-airways-2017-financial-report-records-ksh13-billion-operational-profit

Although Air Namibia and RwandAir are recording loses, other are doing great jobs and that should be a sort of motivation that we can set up a great airline too.

That was 6 months profit not for the year. Only Ethiopian Airways makes a profit in Africat. Nigeria doesn't need an airline, There's Arik and Aero which are actually owned by the government right now.

Nobody has provided a business case for Air Nigeria, not even the minister of aviation. What will Nigeria Air provide that Peace, Arik and Aero cannot provide giving the right business environment(which the government should actually be providing?).


A recent article about Kenya Airways.
https://www.reuters.com/article/us-kenya-airways/kenya-airways-looks-upmarket-for-financial-salvation-idUSKCN1GI245

deomelo:



Your problem is gross inability to read and comprehend simple English words.

That isn't his problem really. His problem, as a matter of fact, is hatred…hatred for a person, the president; and hatred for a people, the northerners. He's therefore so blind to read facts. What a shame.

Firefire:
Why not allowed the government of lies and deceit who have detailed information of the project to respond to the tweet?

Why base your response on newspaper publications which could be HALF-TRUTH?


FYI, this government is too fraudulent to be defended without empirical facts and figures l.

Good luck on your enterprise of defense.


“*Air Nigeria/Nigeria Air*

Ordinarily, it should gladdens the heart when plans were set to revive Nigeria air fleet for commercial purpose.

But critical comparison to other countries with national fleets has propounded these questions begging for answers.

One might ask why the rush to unveil a logo when there are no aircraft's, personnel's, websites and other functional apparatus on ground? Is this another gimmicks to score points.

*Time shall tell*


- Who are the owners of the *95%* equity?

- Why is the ownership shrouded in secrecy?

- Why is *5%* equity holder funding the business?

- Where are these fundings *$8m, $300m coming from? Budget? Borrowing*?

- Are the aircrafts under lease agreement? *If yes, for how many years*?

- If it's private investment, why would a *5%* equity holder determine the *name, logo and other trademarks* of the airline?

- Since it's private sector driven, why not adopt any of the existing airlines in Nigeria as the National carrier?

- Are there sinister motives? Sure! Time shall tell.

Facts that you may need to compare notes:

Other National carriers in Africa.

*Kenya*
Fleet size: *40*
Kenya Airways is *48.9%* owned by the Government of Kenya

*Ethiopia*
Fleet size: *100*
Ethiopian Airways is *100%* owned by government.

*Morocco*
Fleet size: *56*
Royal Air Maroc is *100%* owned by government of Morocco

*South Africa*
Fleet size: *47*
South African Airways is *100%* owned by Government of South Africa.

*Rwanda*
Fleet size: *12*
Rwandair is *99%* owned by the Government of Rwanda

*Tunisia*
Fleet size: *29*
Tunisair The company is *74%* owned by the Tunisian government

*Egypt*
Fleet size: *54*
Egypt Air is *100%* owned by the Government of Egypt

*Nigeria Air*
Fleet size: *Unknown*
Nigeria Air is *5%* owned by the government .

Even the British Airways was *solely owned* by the British Government until it was privatised in *1987*.

So, where are we?” - copied

good questions sir,

you will now see abracadabra answers to these question.
whose model are we following.
why will 5% holder be providing funds when 95% is not.
how can we know owner of 5% of this entity and we don't know the remaining 95%.
5% is the one talking &calling the shot while 95% is quiet.
and we say this is a proper business arrangement?

and we say it's not destined to fail.?

OK oh.

let us continue to look.

I'm even surprised the fleet are not on ground, company is not on ground and we say this is a proper business and we are unveiling.

pls has anyone seen products of even a company being uvelied without the product on stands.

but lemme be "patriotic"
continue the investment.

7years from now, I just hope it will not be helpNigeria

AZeD1:


That was 6 months profit not for the year. Only Ethiopian Airways makes a profit in Africat. Nigeria doesn't need an airline, There's Arik and Aero which are actually owned by the government right now.

Nobody has provided a business case for Air Nigeria, not even the minister of aviation. What will Nigeria Air provide that Peace, Arik and Aero cannot provide giving the right business environment(which the government should actually be providing?).


A recent article about Kenya Airways.
https://www.reuters.com/article/us-kenya-airways/kenya-airways-looks-upmarket-for-financial-salvation-idUSKCN1GI245

First of all, Nigeria has more air travelers than Kenya or Ethiopia. Yet, both of these countries have successful carriers, and frankly most of their carriers rely a lot on the customers they get from Nigeria

Secondly, if you have looked up air travel options on any booking agency of recent, particularly to African and middle eastern destinations, you will realize that majority of the flights leaving Nigeria are dominated by African carriers that also employ nearly 90% of the workforce from their own home countries. Thus, a national air carrier should create a lot of employment opportunities for Nigerians.


Thirdly, it will generate a lot of revenue for the government on the long run, directly (as share holders) or indirectly (through taxes)

tiwiex:

I don't think a GSM analogy is valid here. Travellers are different. A national airline involves a lot of international travellers to be profitable. The problem is that they have to pass through your country and airport. Our airports are the worst in the world. Finally, Nigerians can barely feed. What percentage even fly locally? We have serious economic issues. I don't see a profitability path with our current infrastructure.

When you have serious economic issues, you drum up investments to create jobs, expand revenue base and so on, but according to people like you, it's the other ignorant and backward way around.

Major investments like what we are talking about in this thread create jobs for many Nigerians and the same jobs will make it possible for the same Nigerians you think you are fighting for to afford food, a roof over their heads, school fees and even money to buy plane tickets if possible.

Or you think the airline will fly without Nigerian pilots, without Nigerian ticketing agents, without Nigerian vendors, without Nigerian accountants, without Nigerian lawyers, without Nigerian printers and sign writers, without Nigerian stationary vendors, without Nigerian car dealerships, without Nigerian jet fuel and oil companies and on?

Such businesses and investments grow the government's taxes/IGR, the same IGR is what your government build schools, hospitals, roads, bridges and fund government program and services.


You people are just too shortsighted and misguided because[code][/code] you in one breath act as if you really care about the poor man while in another breath you are against jobs, food and rent and everything that helps the same poor man you are faking support for.


You people care less about the poor man, you are just against Nigeria, against the Nigerian government and anything Nigerian.

obailala:
The people who can afford it would afford it, and it would help grow the economy of the country, which in turn would positively affect the lives of everyone including the poor.

Not every venture must be aimed directly at the poor poor and poor before we accept it is good. Nigeria also has a large middle and upper class who need to be catered for.

Well said. In fact, the poor benefits directly and indirectly from such investments via jobs and infrastructures the generated IGR from such investments creates.

AZeD1:


That was 6 months profit not for the year. Only Ethiopian Airways makes a profit in Africat. Nigeria doesn't need an airline, There's Arik and Aero which are actually owned by the government right now.

Nobody has provided a business case for Air Nigeria, not even the minister of aviation. What will Nigeria Air provide that Peace, Arik and Aero cannot provide giving the right business environment(which the government should actually be providing?).


A recent article about Kenya Airways.
https://www.reuters.com/article/us-kenya-airways/kenya-airways-looks-upmarket-for-financial-salvation-idUSKCN1GI245

I totally understand your point bro, however, let's not forget that private airlines flourish even in countries where there is a national carrier too.

Thankfully, you admit that Ethiopian Airways is the only government owned airline making profit in Africa, and not just some profit, huge profits. And the fact that Kenya Airways made six months profit says it all. The fact that Ethiopian Airline can do it should also motivate and drive us towards having a successful national carrier too.

Nonsense.....



It's an avenue to siphon funds


300million that is not in the budget.....is it gon be outsourced?



Dubious people.

PassingShot:
[s][/s]
The plane being planned is 737 and not 777. It costs between $55m and $80m depending on the grade. At launch, just five units will be bought.

Now, swerve since it's obvious you belly-ache about the news.

Whose decision is it to purchase 5 aircraft? What if the expected investors in the carrier have different opinions? Where is the $300 million plus operational expenses coming from? My friend, this national carrier stuff appears hasty. Why not use few aircraft from Presidential Fleet as start up? Many Nigerians are not sold on this national carrier stuff, especially as information is sketchy on source of the $300 million to buy 5 aircraft and initial operational expenses! More info is required pls.

PassingShot:
The plane being planned is 737 and not 777. It costs between $55m and $80m depending on the grade. At launch, just five units will be bought.

Now, swerve since it's obvious you belly-ache about the news.

Just 5 units would be bought? Are you sure? Please what is the source of this info? Kindly provide the link or url, so we can read and verify.

new2012:
With a complicated project plan, dead airports, messed up custom officers, I think the Airline just died


An average lifespan for airlines in Nigeria is 10years, this one need grace to do 5!


A project plan that requires beer parlour explanations by party asslickers and sycophants..


How can you have 5% stake and control the business? Negotiate for airplanes and set up? OK, what do I know?

at emboldened


Yet majority of carriers in Africa continue to troop into the Nigerian market everyday e.g. Namibia airways of recent just entered the Nigerian market.


5% stake doesn't mean they shouldn't initiate the project, it simply means they eventually hope to sell majority sake to investors or own less than 5% of shares on a long run.

In addition, if you read through your own submissions on the topic, you will realize that maintaining a low percent in the venture will be the best option to take because of low maintenance culture of the Nigerian government as you have rightly pointed out in the 10years life span of most national air carriers.

So how is their business sense wacky?

PassingShot:
I read with great shock the outright lie tweeted by Mustafa Chike-Obi and posted on the FP of Nairaland (https://www.nairaland.com/4631046/mustafa-chike-obi-former-amcom-boss) about the initial capital for the newly unveiled national carrier - Air Nigeria. The claim by the former AMCON Boss that $300m initial capital for the national carrier represents 5% of the initial capital is not only misleading but mischievous and unpatriotic.

For clarification sake, the $300M is the total initial capital required for the first three years of the airline and it is only 5% (max.) of this amount ($15m) that the FG is obliged to contribute. It's the private investors that will contribute the remaining balance of $285m.

The above position was clearly reported by Reuters here http://www.africanews.com/2018/07/20/nigeria-air-seeks-strategic-partner-to-invest-300// where it clearly stated “The initial capital is likely to be in the range of $US 150 to 300 million, invested in tranches over time from start up through the first years of operation,” a government document stated.

It was also clearly reported by Vanguard here https://www.vanguardngr.com/2018/07/nigeria-air-to-gulp-8-8m-preliminary-cost-300m-as-take-off-cost/ . Punch clarifies the 5% stake of the FG in the Project by stating “The Nigerian Government will not own more than 5% (maximum) of the new National Carrier. Government will not be involved in running it or deciding who runs it,” he said http://punchng.com/breaking-nigeria-unveils-name-of-national-carrier-logo/

Now, if the man who prides himself a mathematician is to be correct with his tweet, is he now saying that the initial capital is $6bn? If $300m is 5%, surely the 100% required initial capital required must be $6bn. Chike-Obi needs to tell us where (if it exists anywhere at all) he got his own figure from.


The tweet by the Mustafa, just as that by Oby Ezekwesili should be of great concern to all patriotic citizens of our country who genuinely seek to see Nigeria develop and succeed. Their tweets are a clear indication that many Nigerians do not mind cutting their nose to spite their face! They hate the president so much and if the total failure of the country is the only thing that must happen to justify their hatred for the president, it's all well and good in their own books.

Here's the complete quote from the Africanews link the op presented

" initial capital is likely to be in the range of $US 150 to 300 million, invested in tranches over time from start up through the first years of operation,” a government document stated.

It said the government will provide initial capital but did not state the sum or give further details.


The government will “facilitate the process for opening up the capital of the airline to private sector financial investors”, the document stated.

No where was it stated that the 5% was for the initial start up cost.

Secondly, it clearly stated that the government will provide the initial capital.

Third, the estimation left rooms for cost over runs as there was no clear time frame when the government will stop the funding..

Fact remains that the proposal is still murky and lacks transparency.

Chile obi might be right in his initial assessment until the government proves otherwise.