PassingShot:

The $300m is the required start-up - that is surely 100% of money required at start-up.

The 2nd fact is that government is investing maximum of 5% in the project. Does it make sense that the govt will pay 100% initial capital and pay 5% of subsequent running capital?

From all you have read, does $300m (which was clearly stated is the initial required capital) represent 5% of initial capital? If it does, then the initial capital will be $6bn.

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

SuperS1Panther:
Osus like Oby and Chike-Obi are bitter hateful beings.

They hate everything and anything. I am sure they even hate God.

No wonder they bad mouth a lot. Their brains are full of hate and evil wishes.

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

PassingShot:

Anyone and everyone who doesn't agree with your hate-induced position is paid.

See blackmailing!

He assumed the guy is paid because of his sound grammar. Street urchins can't argue using such refined English registers.

Aircraft manufacturers typically give steep discounts to list prices.

Below is a quora answer to a question on airline costs:

"To be clear, aircraft cost much less than their list price. A Boeing 737-700NG is listed at $80.6 million but the aircraft actually sells at a 52% discount of $38.7 million. Boeing even recently closed a deal for 20 737-700s for only $22.7 million each to stay competitive.

Another example is the much larger Boeing 777–300ER, which is listed at $320 million but has been sold for as little as $150 million. A Boeing 777–200LR sells for as little as $118 Million. Airbus also offers huge discounts in the range of 45% to 55% off."

How long does it take for an airline to break even on a new airplane purchase? by Ty Joseph https://www.quora.com/How-long-does-it-take-for-an-airline-to-break-even-on-a-new-airplane-purchase/answer/Ty-Joseph-1?share=27776828&srid=JbRm

PassingShot:

Anyone and everyone who doesn't agree with your hate-induced position is paid.

See blackmailing!

Well in my own opinion, the idea of reviving the national carrier is a great one.

However, I think it is a tad premature because the focus of the government should be towards revitalising the avaiation industry and where possible reflating the existing airlines that are currently flailing due to crippling running costs, excessive taxation and low patronage.

We should first identify reasons why Nigeria Airways and Virgin Nigeria failed and learn from those failures first. Why is this one going to be different? What is being done differently this time around?

The focus for now should be towards providing an enabling environment to foster the growth of the avaiation sector and encourage more patronage by providing incentives to make air travel more available and accessible to common Nigerians.

With a population of 200million there is huge potential for growth but just the same way GSm telephony grew when the cost of sim cards fell, same should be done for air travel to boost domestic demand.

Correct

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.

Pls I need to know where I can buy a plane for $80m. I want to buy one. Verify your facts well. I do not believe in the OP stories

Gabriel411:

Pls I need to know where I can buy a plane for $80m. I want to buy one. Verify your facts well. I do not believe in the OP stories

A simple Google search will help you.

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

RwandAir
Kenya Airways
Air Namibia

These are small African countries with efficient airways providing jobs for the citizens and forex for their countries.

Let's even assume we want to look up the number of air travellers in and out of Nigeria, if you combine number of air travellers in these three countries, they won't still match the number of air travellers in Nigeria. Cheers!

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

bros 99.99% of Nigerians can't afford air travels.

Hi many flights come into a nigerian state daily?

sholatech:


No comment. Your responses already shows who you are & what you are paid to do.

And yours show you've been paid to do your own job

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

And yet when it isn't done now, Fools like you later in the future will be shouting that Namibia, Rwanda and the likes have a airline and Nigeria doesn't. Some of you guys are just so pathetic and full of hatred. I know you're sad cos Buhari is the president. smh

Max24:

Fantastic ! Same way defunct NEPA and NITEL boosted our economy and provided jobs for thousands of unemployed youths at the expense of the masses for many years. Welcome to the Animal Farm of Chibuike Ameachi and APC !

You have to give PDP that credit

AZeD1:

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

Yes, it does. Permit me to explain this in brief.

The Nigerian Airways is a Nigerian offshoot company. Like every national carrier across the globe, the government is solely responsible for its set up. However, in order to stay efficient and free from government bottlenecks, willing investors who will manage its daily affairs like a private entity are needed. You don't expect a foreign company to set up a company that represent the Nigerian brand for us.

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.

80*5 equal 400 million

The former AMCON boss asked for explanation instead you attacked him...

I hope you know how many Nigerian citizens that lost their lives since Buhari became president

Nigerian has never been good I will give you facts.

Patriotic citizens that wants this country to succeed are not allowed to rule

Patriotic citizens wants resource control

You cannot start an air line targeting 84 destinations with $300 million dollars. Na flying Keke you wan buy? Do you know how much an a Boeing costs? Dude you are the one who is wrong.

Phagyrhe:


Yes, it does. Permit me to explain this in brief.

The Nigerian Airways is a Nigerian offshoot company. Like every national carrier across the globe, the government is solely responsible for its set up. However, in order to stay efficient and free from government bottlenecks, willing investors who will manage its daily affairs like a private entity are needed. You don't expect a foreign company to set up a company that represent the Nigerian brand for us.

This is a whole lot of rubbish.
The government says its will own only 5% of the company, which means its basically a private airline.
National carriers are either fully government owned or majorly government owned.

Phagyrhe:


RwandAir
Kenya Airways
Air Namibia

These are small African countries with efficient airways providing jobs for the citizens and forex for their countries.

Let's even assume we want to look up the number of air travellers in and out of Nigeria, if you combine number of air travellers in these three countries, they won't still match the number of air travellers in Nigeria. Cheers!

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

PrecisionFx:


bros 99.99% of Nigerians can't afford air travels.

Hi many flights come into a nigerian state daily?

Permit me to disagree with you on this. Rwand, Kenya, Qatar, Emirates and Ethiopian Airways get huge chunk of their revenue through international routes. There are two major airports in United Arab Emirates, one in Kenya, Rwanda, Namibia, Qatar and Ethiopia.

Between, Lagos and Abuja routes are among the busiest in Africa

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.

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?

Enjoy.

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

Yes. We need the revenue.

Any political party that oppose Nigeria air cannot be trusted...the same people will oppose refinery, processing and manufacturing plants etc. based on their money and market economy rubbish ideology. But what we have from this government too seem to be shrewd with misinformation and confusion...why launch logo when you can wait 3 more months to launch main airlines?$300 million can do no jack...cant even ship down 2 planes in Naija contest be it 737, 747 or 777...it is hard to think this is not political staunt...on another note, Buhari can donate 6 of the 11 presidential aircrafts and our pastors too can loan us...maybe we can start from there

sholatech:


No comment. Your responses already shows who you are & what you are paid to do.

You shouldn't have responded or debate with lame gossips, rumors, innuendoes and tales that you can not prove with sane and rational facts...

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.

On the contrary, government is actually footing the whole bill for the startup capital. The whole setup is rubbish in my opinion. Gov't is just using our money to fund Amaechi African Airlines/Airways (take your pick). Probably explains why he has been in the shadows, pulling the strings instead of being front and center taking the glory like we know him for.

I am still on the opinion that FG should convert Arik Air as the National carrier.

greenmonk:


Why do people always attack anyone with contrary opinion to yours even the n issues you know nothing about?
If $300m is the total project value what is the cost of a Boeing 777 jet?
Arm chair politicians and economics gurus Kontinu sai baba until we are all buried the shithole we are being led into.

Planes and major airline operational structures are financed, not paid for outright.

Don't blame your own ignorance on other people or hide under opinion. You cannot reooqce facts with lame and ignorant opinion..

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?

$300mil is for the first 3years. To start it up. We know u went to sch. The rest is up to the investors. This people already have a road map to their destination. Stop forming ITK

obi58:


Well in my own opinion, the idea of reviving the national carrier is a great one.

However, I think it is a tad premature because the focus of the government should be towards revitalising the avaiation industry and where possible reflating the existing airlines that are currently flailing due to crippling running costs, excessive taxation and low patronage.

We should first identify reasons why Nigeria Airways and Virgin Nigeria failed and learn from those failures first. Why is this one going to be different? What is being done differently this time around?

The focus for now should be towards providing an enabling environment to foster the growth of the avaiation sector and encourage more patronage by providing incentives to make air travel more available and accessible to common Nigerians.

With a population of 200million there is huge potential for growth but just the same way GSm telephony grew when the cost of sim cards fell, same should be done for air travel to boost domestic demand.

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.

AZeD1:

This is a whole lot of rubbish.
The government says its will own only 5% of the company, which means its basically a private airline.
National carriers are either fully government owned or majorly government owned.

We are here to learn bro.

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