Minister of Aviation, Hadi Sirika this week announced that the Federal Governent had signed a Memorandum of Understanding (MOU) with two aircraft manufacturers Boeing and Airbus in respect of the establishment of a national airline . Sirika made this known in a tweet from his twitter handle.
Boeing said they can’t wait to discuss their proposal for the Nigerian National Carrier. Will sign an MOU at the IWAF pic.twitter.com/mj2QW3tzZf
— Hadi Sirika (@hadisirika) November 16, 2017
Airbus signified interest in our National Carrier and our MRO. Will discuss further during the upcoming ICAO forum ?? pic.twitter.com/aIrxsz1G7K
— Hadi Sirika (@hadisirika) November 15, 2017
How will the airlines benefit ?
Partnering with the government to set up a national carrier provides the airlines an avenue to sell their aircraft, in one of the biggest markets in Africa.
Will history repeat itself ?
Nigeria has had a chequered history when it comes to public private partnerships, especially in the aviation sector. Virgin Atlantic, which ran Virgin Nigeria a national carrier in partnership with the Federal Government, pulled out after a new administration came into office. The company accused the Federal Government of not keeping to its own side of the agreement. Virgin’s stake was bought by popular businessman Jimoh Ibrahim, who shut the airline a few years after due to labour issues.
The aviation sector is a difficult one to operate in, as the airlines have a short lifespan. The Federal Government through the Asset Management Company of Nigeria (AMCON) has had to take over two of the country’s major airlines Arik Air and Aerocontractors due to their indebtedness to the bad bank.
The Boeing company, founded on July 1, 1916 is an American company that is into the sales and manufacture of aircraft, rotor craft, rockets and satellites. Boeing is the largest exporter in the United States by dollar venue. The company is listed on the New York Stock Exchange (NYSE) and has its headquarters in Chicago.
Airbus,( formerly known as European Aeronautic Defence and Space Company) , was founded in 1970 and is into the design and sale of military and areonuautical products. The company’s corporate headquarters and main office are located in Toulouse, France. Airbus is listed on the Paris, Frankfurt, and Madrid stock exchanges.
