The Federal Government on Thursday announced that beginning from next week it would start sending out Request for Proposals to investors interested in owning shares in the proposed national carrier.

It also expressed hope that the carrier, Nigeria Air, would be quoted on the stock exchange, adding that Nigerians would be allowed to buy shares in the airline that was being planned to commence operations with three leased aircraft.

The Minister of Aviation, Hadi Sirka, disclosed this at a briefing in Abuja, where he explained that 46 per cent stake in the airline was exclusively for Nigerians, five per cent was for government, while 49 per cent was for strategic equity partners, which were assumed to be foreign investors.

Sirika said discussions with prospective investors had been ongoing and that Request for Proposals would be sent out next week.

He said, “We will release what is called Request for Proposals very soon, I believe next week. And this Request for Proposals will describe what and what we are asking for.

“You will now go and send us a document that you are proposing to partner us and this is what you are giving us. Then we will sit down, evaluate, discuss and choose a strategic partner or partners for this airline.

“So Request for Proposals are going out next week and by the grace of God we will continue to pursue that and people will show up.”

Responding to a question on how the 46 per cent stake to be owned by Nigerians would be acquired, Sirika said, “It will be purchased exactly the way you buy shares in every company.

“This is because Nigeria Air is a limited liability company for now, registered under the law of the land and structured in a PPP (public private partnership) manner.

“So you purchase it the same way you purchase shares in any company and later it is our hope that it will be listed and go through IPO (Initial Public Offering) and so on.”

The minister explained that the airline would start operations with three wet-leased aircraft, as it would take about three to five years to take delivery of an aircraft that was ordered for.

“They will start with wet-leased aircraft and that’s how 90 per cent of airlines in the world would have started. So they will start with a wet-lease of three aircraft and then continue to expand, place orders and then get deliveries,” he stated.

https://punchng.com/nigeria-air-fg-to-float-ipo-begins-operations-with-three-planes/?utm_source=auto-read-also&utm_medium=web&amp

Another story

Something tells me that the biggest scam in the history of the world is about to unfold, how do you do an IPO for a company that is not in operation?

News for PDP Dundees and IPOB terrorists to discredit.


Only bad news is good news to wailing losers.

Oga can you explain what an IPO is? Who will provide security if the FG refused to float the company? How will you guarantee that it will be well run as a business and not padi padi? Show me one IPO on a business before its existence.
See don't monopolies foolishness

JAMO84:
News for PDP Dundees and IPOB terrorists to discredit.


Only bad news is good news to wailing losers.

after4:
Oga can you explain what an IPO is? Who will provide security if the FG refused to float the company? How will you guarantee that it will be well run as a business and not padi padi? Show me one IPO on a business before its existence.
See don't monopolies foolishness

We know una.


If na bad news, you won't be asking questions, na straight acceptance.

Yes
Yes
Yes
Another one

We the youths are solidly behind our darling president Daddy oyoyo


We will soon get there

Is this a joke or what? How can a business have an exit event before it even begin?

Nigeria matter don tire me.

You want to start Nigeria Air soon. My main concern here is: why start with a wet lease? In a country with a high number of unemployed youths. You are doing wet lease?
For those that might not know, wet leasing means the 3 aircraft will be delivered with a complete crew. For me it's not fair to unemployed Nigerian youths. Speaks volumes about the sincerity of govt to reduce unemployment.

Let's watch

Just 3 planes

answer that question and stop zombieing that you are olodo

JAMO84:
We know una.


If na bad news, you won't be asking questions, na straight acceptance.

JAMO84:
We know una.

If na bad news, you won't be asking questions, na straight acceptance.

Do you plan on investing you're money into this venture? Cheerleading is easy if you're not putting any money on the table.

Fernandeswagger:
You want to start Nigeria Air soon. My main concern here is: why start with a wet lease? In a country with a high number of unemployed youths. You are doing wet lease?
For those that might not know, wet leasing means the 3 aircraft will be delivered with a complete crew. For me it's not fair to unemployed Nigerian youths. Speaks volumes about the sincerity of govt to reduce unemployment.

Hmmm. These are funds from investors from everywhere all over the world, not the usual national cake where excellent international service delivery and corporate governance will be sacrificed on the altar of politics and national character which killed the defunct Nigeria Airways.
While it is practical to hire everyone from here, it may not easily convince the international investors that want returns on their investments.

For that kind of vision, it's not even compulsory that the M.D come from Nigeria, especially at the early stages if you truly want to quickly make inroads into the highly capital intensive but competitive aviation industry. The Executive Managing Director/ President of the Emirates Airline is a British citizen Sir Tim Clark KBE https://en.m.wikipedia.org/wiki/Tim_Clark_(airline_executive) who was previously managing the Sri Lankan airways and later moved to the Emirates where he has been the President of Emirates since January 2003 (almost 20 years now) and you need to see how infectious his passion is. He literally grew the Emirates Airline to what it is today yet he is British. So if we can get someone like that, for practical purposes, he and the investors will insist on assembling his team of highly experienced crew from all over the world in order to build the brand and culture then in later years, start increasing the number of Nigerians in the company.

Hopefully, before then, he or she would have shown promises of profitability in the company so it can get more investors to fund its future expansion. It becomes a win win to all the stakeholders in the long run; government achieves seeing the National Airway flying in the sky again and creating jobs and capital importation while investors get their dividends.
Incidentally, this was a similar model FG used for setting up NAHCO and even after divesting from NAHCO during Pa Obj's tenure, NAHCO still retained its name yet it's 100% private run and profitably too. In fact, NAHCO appointed an expatriate recently to resume this December,. If you go through the profile of the man NAHCO just hired, you will know that NAHCO took the vacancy to the international audience and didn't restrict it to Nigeria.
During his tenure in NAHCO , there will be knowledge transfer, more efficiency and profitability due to his past experience in that role at different times in different international airports in different countries, and more jobs created as NAHCO grows more to yield more dividends to the shareholders.

I support their steps so far and it shows some thinking has gone into it. To start an airline is good o but the ability of the airline to survive and compete profitably over time is more important.

From my experience of how the management and workers of defunct Nigerian Airways were giving their relatives free tickets those days, starting with Nigerian crew who may soon start giving family, friends and associates free tickets can be avoided with a wet lease.
Once the corporate culture is set and more of our compatriots come on board, they will just fall in line and understand that everything they must do must be top-notch international best practices.

May God bless Nigeria.

FreeStuffsNG:

Hmmm. These are funds from investors from everywhere all over the world, not the usual national cake where excellent international service delivery and corporate governance will be sacrificed on the altar of politics and national character which killed the defunct Nigeria Airways.
While it is practical to hire everyone from here, it may not easily convince the international investors that want returns on their investments.

For that kind of vision, it's not even compulsory that the M.D come from Nigeria, especially at the early stages if you truly want to quickly make inroads into the highly capital intensive but competitive aviation industry. The Executive Managing Director/ President of the Emirates Airline is a British citizen Sir Tim Clark KBE https://en.m.wikipedia.org/wiki/Tim_Clark_(airline_executive) who was previously managing the Sri Lankan airways and later moved to the Emirates where he has been the President of Emirates since January 2003 (almost 20 years now) and you need to see how infectious his passion is. He literally grew the Emirates Airline to what it is today yet he is British. So if we can get someone like that, for practical purposes, he and the investors will insist on assembling his team of highly experienced crew from all over the world in order to build the brand and culture then in later years, start increasing the number of Nigerians in the company.

Hopefully, before then, he or she would have shown promises of profitability in the company so it can get more investors to fund its future expansion. It becomes a win win to all the stakeholders in the long run; government achieves seeing the National Airway flying in the sky again and creating jobs and capital importation while investors get their dividends.
Incidentally, this was a similar model FG used for setting up NAHCO and even after divesting from NAHCO during Pa Obj's tenure, NAHCO still retained its name yet it's 100% private run and profitably too. In fact, NAHCO appointed an expatriate recently to resume this December,. If you go through the profile of the man NAHCO just hired, you will know that NAHCO took the vacancy to the international audience and didn't restrict it to Nigeria.
During his tenure in NAHCO , there will be knowledge transfer, more efficiency and profitability due to his past experience in that role at different times in different international airports in different countries, and more jobs created as NAHCO grows more to yield more dividends to the shareholders.

I support their steps so far and it shows some thinking has gone into it. To start an airline is good o but the ability of the airline to survive and compete profitably over time is more important.

From my experience of how the management and workers of defunct Nigerian Airways were giving their relatives free tickets those days, starting with Nigerian crew who may soon start giving family, friends and associates free tickets can be avoided with a wet lease.
Once the corporate culture is set and more of our compatriots come on board, they will just fall in line and understand that everything they must do must be top-notch international best practices.

May God bless Nigeria.

I like your point of view. Good reason for the wet lease. I pray that was also their reason for it. Time will surely tell. All the best for the country.