The Airline Operators of Nigeria (AON), has commended the Federal Government over its decision to suspend the Nigeria Air project in view of the fiscal realities and the capital intensive nature of the project.
The association’s Chairman, Capt. Nogie Meggison, on Thursday said that the decision by the Federal Executive Council (FEC) aligned with the position of many stakeholders that government should have a rethink on the national carrier project.
Citing the tough economic situation in the country as a sound basis for putting the project on hold, the umbrella body of airline investors projected that commencing the take off of the national carrier project in December as earlier planned would have cost the taxpayers up to $3 billion.
According to the AON chairman, apart from the $3 billion start-up funding requirement, it would require also an annual $500 million annual subsidy to keep the carrier running for the next 10 years.
He clarified: “Setting up of National Carrier will cost Nigeria at least $3bn (a single B777 as of today costs about $320m.)”, he said, it would not be wise to spend that huge amount on “a venture that will for sure go down the drain within a maximum of 5 years to establish a “National Carrier”?
“Bearing also in mind that the National Carrier will need an additional cash injection of $500m subsidy per year on average for the next 10 years to keep the airline afloat while about 97% of the 200 million Nigerian masses today are grappling for the basic necessities of life; food, shelter, electricity, water, education and good roads.
“Once again we thank the President and the FEC for this indefinite suspension of the national carrier. However, government should go back to the drawing board and engage with the private sector with transparency on how to position Nigeria as the hub for Africa to take advantage of our God given gift of geographical location”, Meggison added.
Another industry top shot, Capt. John Ojikutu, was quoted as expressing his concerns on why the project couldn’t be pursued to a logical conclusion after over a year’s preparation, asking the Minister of State for Aviation, Hadi Sirika, to explain why the project was suspended.
He said: “Whatever has happened between him and the cabinet members that makes the project suspended or to be kept on hold must be shared with the public if truly it is a national carrier project and not government or private project.”
