Umbrella body of domestic carriers, Airline Operators of Nigeria (AON), has commended the Federal Government for taking bold steps to suspend indefinitely the controversial carrier – Nigeria Air.
The airline body said judging by the tough economic times in the country today, it would not make economic sense for any administration to invest over $ 3 billion in an airline project that is neither sustainable nor profitable.
In a statement on Thursday, its executive Chairman, Captain Nogie Meggison said the government took the right steps to pull the brakes on the planned carrier in response to the AON consistently called for a rethink on the project in the light of the tough economic situation; warning government that the concept of national carrier was moribund.
Besides, Meggison said 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 given its geographical location
Meggison said: ” At this time of our national limited resources and struggle to recover from recession, AON would like to state that there are private Nigerian Airline Investors ready to invest and already investing heavily on the sector and only asking for a more friendly operational environment and infrastructure support.”
“During these tough economic times, why do we want to rush and spend $3bn on an airline that we know will not make profit?
We know how many Nigeria roads can be tarred with the funds. The truth is that the whole National Carrier concept is totally unsustainable and will be a drain pipe that will lead to wastage of our scarce resources.”
Putting the issue in perspective, Meggison said: “Setting up of National Carrier will cost Nigeria at least $3bn (a single B777 as of today costs about $320m.)” He therefore asked: “Is it wise and our priority as a nation to take $3bn from the Nigerian coffers today and put into a venture that will for sure go down the drain within a maximum of five years to establish a “National Carrier”?
He went on: “We thank President Muhammadu Buhari and the Federal Executive Council (FEC) for listening to our many calls for the idea to be suspended. In our opinion we believe the process was neither transparent nor did it clearly define the role of Private investors in the entire process.
“At this time of our national limited resources and struggle to recover from recession, AON would like to state that there are private Nigerian Airline Investors ready to invest and already investing heavily on the sector and only asking for a more friendly operational environment and infrastructure support.
“National Carrier is an obsolete ‘“EGO/PRIDE” idea. Business and pride don’t go together. All over Europe South America, United States today, 90 per cent of their carriers including Lufthansa, British Airways are all flag carriers which are completely private entities.