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This aviation expert believes FG’s Nigeria Air venture could kill local operators

Nigeria Air Launch: House Committee Summons Perm Secretary

The Chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, has alleged that the Federal Government’s plans to establish a new national carrier called Nigeria Air with Ethiopian Airlines would ultimately collapse existing indigenous airlines in the country.

Speaking to Nairametrics in Lagos earlier this week, Okonkwo also clarified that the domestic airlines under the auspices of Airline Operators of Nigeria (AON) are not against the reestablishment of a new national carrier for the country. Instead, they are against the process leading to the establishment of the national carrier.

Okonkwo, who is also the Public Relations Officer (PRO) of AON, assured that if the process leading to the formation of Nigeria Air was transparent, the operators would be among the first to patronise the new airline and give their support to it.

AON’s bone of contention: Okonkwo pointed out that the granting of a 15 years tax moratorium to Nigeria Air was absurd and insisted that it lacked patriotism of any type by the Ministry of Aviation.

He also explained that despite the 15 years of tax moratorium granted to the airline through Ethiopian Airlines, the government also agreed to indemnify the carrier for its loans abroad and in the country.

Okonkwo vowed that the operators would continue to kick against the position of the national carrier through the court, maintaining that the essence of the court was to interpret the action of the government and its agreement with the airline. He said:

Too disruptive for local airlines: Okonkwo wondered why the Ministry of Aviation, which has an aviation professional as its minister, would accept all the clauses embedded in the agreement with Ethiopian Airlines.

He also expressed worry that the action of the government would disrupt the recent growth in the sector, which was rated the second fastest-growing industry in the world in the last year after Colombia.

He, however, lauded the government for approving free customs duties to airline operators on the acquisition of aircraft and importation of aircraft, saying that this gesture had gone a long way to giving succour to the operators.

 

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