Travel News

 BY MOLLY RUSSELL

"We need their service, but they need our market more," Haidi Sirika told a senate committee on Wednesday.

Following Emirates’ decision to suspend its Nigerian services late last month, Nigerian Aviation Minister Sirika has urged the Dubai-based flag carrier to exercise restraint with its current approach, as reported by Vanguard.

Continued dispute

Speaking at a Senate Committee for Aviation led by Senator Biodun Olujimi earlier this week, Sirika highlighted the ongoing financial crisis within the country triggered by COVID-19 and the recession, slamming Emirates’ decision to stop flights despite having signed an agreement.

Close

“Almost all countries except UAE understood, and we are trying to pay this money, but my concern is that countries go through war and problems, and there should be mutual understanding with each other,” said Sirika.

“We need their service, but they need our market more. We are assuring them that the money will be paid, but they should exercise restraint and treat Nigeria with value.”

It is the latest in a dispute between several international carriers and the Nigerian government following a lack of foreign currency trapping over $700 million in revenue within the country.

Emirates paused flights to Lagos on October 29 after attempting to repatriate at least 80% of its $85 million blocked funds. In a media statement provided to Reuters, the carrier confirmed that ‘extraordinary circumstances’ had led it to implement measures to mitigate further losses within the country.

The journey from Canary Wharf to Heathrow now takes 45 minutes on the Elizabeth Line

Live flight departure times are being displayed at Canary Wharf after the first Elizabeth Line services connecting the business district directly to Heathrow Airport began on Sunday.

It now takes commuters just 45 minutes to travel directly from Canary Wharf to the west London airport, so flight departure boards with real-time information from the airport terminals are being displayed.

It’s hoped the speedy connection will attract international tourists to Canary Wharf - and boost local business revenue - as well as making international trips easier for residents and workers in the area.

“Business travellers and residents who would have previously opted for multiple connecting Tube lines or taxis can now enjoy state-of-the-art travel on the Elizabeth line,” Canary Wharf Group chief executive Shobi Khan said.

“We hope businesses currently taking residency in Canary Wharf will relish the vast number of international business opportunities the extension is sure to bring, and we hope to inspire other businesses and Londoners alike to take up residency here.”

The Elizabeth line has already proven popular, with two million passengers departing at the Wharf since it opened there in May.

It came just a week after the opening of Bond Street Elizabeth line station, which marked the completion of the last new station on the line.

More than two million trips are currently made each week on the Elizabeth line, which has air conditioning on each train carriage, increased luggage space, and a mix of metro and mainline seats.

Services from Reading and Heathrow in the west no longer terminate at Paddington but run through new tunnels under central London to Liverpool Street, and vice versa.

Similarly, services from Shenfield and other stations east of London no longer terminate at Liverpool Street but continue in tunnels to Paddington.

Services from the line’s south-eastern branch at Abbey Wood run directly to Heathrow or Reading rather than terminating at Paddington.

The November 6 changes also sees the line now operating seven days a week.

Heathrow tickets will cost £10.80 off-peak and £11.50 at peak time – up to £7.30 more than the same journey on the Tube but less than half the price of the £25 Heathrow Express service.

The third and final stage of the line’s opening – to allow direct trains to run between Reading or Heathrow and Shenfield – is due to happen next May.

This will include end-to-end journeys, including from Shenfield to Heathrow, and up to 24 trains per hour during the peak between Paddington and Whitechapel.

BY  Chinedu Eze

In order to meet the envisaged high passenger demand during the Christmas season when passenger traffic more than double that of the previous months, Nigerian airlines have started acquiring more aircraft to meet the expected surge in passenger movement.

THISDAY learnt that some of these airlines have leased aircraft while some are in the process of leasing.

Some others, THISDAY learnt, are bringing back their aircraft earlier sent out for major maintenance, which exercise has been completed.

Since 2022 there have been recorded depletion of operating aircraft to the extent that by July this year all operating aircraft in scheduled domestic commercial service was put at 28, but indication shows that the number in the aircraft fleet of Nigerian carriers has started increasing.

It was learnt that in addition of having the highest number of operating aircraft, Air Peace recently acquired four Airbus A320s and intends to add more before the height of the season in December.

Competent sources told THISDAY that Ibom Air is expected to have additional two Airbus A320 land in Nigeria before the end of this weekend.

In an exclusive chart with THISDAY, United Nigeria Airlines spokesman, Achilles Uchegbu, said the airline is expected to bring in additional aircraft in the next two weeks.

Also the Head of Communications, Arik Air, Adebanji Ola, told THISDAY that the airline has made adequate preparation for the high season and would certainly add more aircraft to its existing fleet.

It was earlier projected that that if the current cost of ticket, which base fare is now N75, 000 continued, it would rise to N200, 000 for one hour flight because of surging demand at that time.

Currently fares rise to over N100, 000 if bought 48 hours or less before flight time and industry insiders attributed it to inadequate equipment, the high exchange rate and high cost of aviation fuel, known as Jet A1.

Experts project that passenger traffic in air travel would have depleted to about 40 per cent of the current statistics if other means of travel like the road were safe, noting that the high airfares are not connected to demand and supply principles but exigencies that have to do with high exchange rate, the cost of aviation fuel, the cost of maintenance, scarcity of dollars and limited operating hours due to many sunset airports.

The genesis of the high cost of fares and relatively fewer number of equipment could be traced to the impact of COVID-19 during the lockdown, industry experts said.

The industry insiders said airlines spent hugely to resume flights after the lockdown in training to prepare for flight service that was safe from spreading the pandemic.

They got involved in the procurement of COVID-19 kits and other attendant stringent measures, including vacating middle seats in the aircraft.

By the time the lockdown came to an end, aircraft that were still airworthy after servicing them for operation became due for C-Check. C-check is compulsory after 18 months, according to the Nigerian Civil Aviation Authority (NCAA). Before the lockdown, airlines like Air Peace already had some of its aircraft ferried overseas for checks, due to the lockdown, maintenance facilities were not working and after the lockdown they were not quickly returned for service. Some existing operational aircraft in Nigeria then became due for C-check.

Then the Nigerian economy was hit by scarcity of forex, which value astronomically began to rise against the naira and made it very difficult for airlines to source dollars to pay and bring back their aircraft.

In February aviation fuel rose from N180 per litre to N400 per litre and has continued to rise and the airlines continued to reflect the increase in the cost of service to their airfares in other to sustain their operation.

Spokesman of Air Peace, Stanley Olise, told THISDAY on Wednesday that the airline was fully prepared for the Yuletide season, disclosing that it recently acquired four Airbus A320 and was inclined to adding more aircraft to its fleet. The airline has also added new routes and renewed service to Yola.

“We have been operating to our major destinations and we have also been operating to Warri, Akure, Ilorin and on November 8 we renewed flights to Yola, “he said.

He said that although the high airfares might have kept many potential air travellers from the airports, but airlines do not have any other choice if they must continue to operate and provide service to Nigerians, adding that the airline has been recording high load factor with lowest being 70 per cent despite the fact that there is overall reduction in passenger traffic.

Olise also said that the indication that fares might rise to N200, 000 for one hour flight would not happen because airlines have acquired more aircraft, so aircraft seats will to a large extend meet the demand of the travellers and that would to tame the fares.

“We always prioritise giving the best service to our customers and we are prepared to serve them efficiently this Christmas. I don’t think airfares will rise to N200, 000 during the holiday. It will not. We are bringing more aircraft and other airlines are doing so too,” he said.

But the CEO of Aero Contractors, Capt Ado Sanusi warned that airlines should be careful in the way they are wet leasing aircraft because of the rising cost of dollars, noting that as long as airlines sell tickets in Naira, it would always be difficult to source dollars to pay the leasing fees.

“The acquisition of aircraft is dependent of the business model of airlines. I know that some of the existing aircraft are going to maintenance but they should be careful as the dollar is unstable, so as they sell tickets in naira the dollar may rise that it will become very expensive to pay for the lease rentals,” he advised.

An official of Bi-Courtney Aviation Services Limited (BASL), Ayotunde Osowa, told THISDAY that the domestic terminal is fully ready for the upsurge of passengers during the holiday season in terms of facilities and personnel.

“Everything is in good shape. All the elevators are working. Our IT system are top notch; so we are prepared for the high season,” he said.

As Yuletide Approaches, Nigerian Carriers Acquire More Aircraft to Meet Demands of High Season

Chinedu Eze

In order to meet the envisaged high passenger demand during the Christmas season when passenger traffic more than double that of the previous months, Nigerian airlines have started acquiring more aircraft to meet the expected surge in passenger movement.

THISDAY learnt that some of these airlines have leased aircraft while some are in the process of leasing.

 Some others, THISDAY learnt, are bringing back their aircraft earlier sent out for major maintenance, which exercise has been completed.

Since 2022 there have been recorded depletion of operating aircraft to the extent that by July this year all operating aircraft in scheduled domestic commercial service was put at 28, but indication shows that the number in the aircraft fleet of Nigerian carriers has started increasing.

It was learnt that in addition of having the highest number of operating aircraft, Air Peace recently acquired four Airbus A320s and intends to add more before the height of the season in December.

Competent sources told THISDAY that Ibom Air is expected to have additional two Airbus A320 land in Nigeria before the end of this weekend.

In an exclusive chart with THISDAY, United Nigeria Airlines spokesman, Achilles Uchegbu, said the airline is expected to bring in additional aircraft in the next two weeks.

Also the Head of Communications, Arik Air, Adebanji Ola, told THISDAY that the airline has made adequate preparation for the high season and would certainly add more aircraft to its existing fleet.

It was earlier projected that that if the current cost of ticket, which base fare is now N75, 000 continued, it would rise to N200, 000 for one hour flight because of surging demand at that time.

Currently fares rise to over N100, 000 if bought 48 hours or less before flight time and industry insiders attributed it to inadequate equipment, the high exchange rate and high cost of aviation fuel, known as Jet A1.

Experts project that passenger traffic in air travel would have depleted to about 40 per cent of the current statistics if other means of travel like the road were safe, noting that the high airfares are not connected to demand and supply principles but exigencies that have to do with high exchange rate, the cost of aviation fuel, the cost of maintenance, scarcity of dollars and limited operating hours due to many sunset airports.

The genesis of the high cost of fares and relatively fewer number of equipment could be traced to the impact of COVID-19 during the lockdown, industry experts said.

The industry insiders said airlines spent hugely to resume flights after the lockdown in training to prepare for flight service that was safe from spreading the pandemic.

They got involved in the procurement of COVID-19 kits and other attendant stringent measures, including vacating middle seats in the aircraft.

By the time the lockdown came to an end, aircraft that were still airworthy after servicing them for operation became due for C-Check. C-check is compulsory after 18 months, according to the Nigerian Civil Aviation Authority (NCAA). Before the lockdown, airlines like Air Peace already had some of its aircraft ferried overseas for checks, due to the lockdown, maintenance facilities were not working and after the lockdown they were not quickly returned for service. Some existing operational aircraft in Nigeria then became due for C-check.

Then the Nigerian economy was hit by scarcity of forex, which value astronomically began to rise against the naira and made it very difficult for airlines to source dollars to pay and bring back their aircraft.

In February aviation fuel rose from N180 per litre to N400 per litre and has continued to rise and the airlines continued to reflect the increase in the cost of service to their airfares in other to sustain their operation.

Spokesman of Air Peace, Stanley Olise, told THISDAY on Wednesday that the airline was fully prepared for the Yuletide season, disclosing that it recently acquired four Airbus A320 and was inclined to adding more aircraft to its fleet. The airline has also added new routes and renewed service to Yola.

“We have been operating to our major destinations and we have also been operating to Warri, Akure, Ilorin and on November 8 we renewed flights to Yola, “he said.

He said that although the high airfares might have kept many potential air travellers from the airports, but airlines do not have any other choice if they must continue to operate and provide service to Nigerians, adding that the airline has been recording high load factor with lowest being 70 per cent despite the fact that there is overall reduction in passenger traffic.

Olise also said that the indication that fares might rise to N200, 000 for one hour flight would not happen because airlines have acquired more aircraft, so aircraft seats will to a large extend meet the demand of the travellers and that would to tame the fares.

“We always prioritise giving the best service to our customers and we are prepared to serve them efficiently this Christmas. I don’t think airfares will rise to N200, 000 during the holiday. It will not. We are bringing more aircraft and other airlines are doing so too,” he said.

But the CEO of Aero Contractors, Capt Ado Sanusi warned that airlines should be careful in the way they are wet leasing aircraft because of the rising cost of dollars, noting that as long as airlines sell tickets in Naira, it would always be difficult to source dollars to pay the leasing fees.

“The acquisition of aircraft is dependent of the business model of airlines. I know that some of the existing aircraft are going to maintenance but they should be careful as the dollar is unstable, so as they sell tickets in naira the dollar may rise that it will become very expensive to pay for the lease rentals,” he advised.

An official of Bi-Courtney Aviation Services Limited (BASL), Ayotunde Osowa, told THISDAY that the domestic terminal is fully ready for the upsurge of passengers during the holiday season in terms of facilities and personnel.

“Everything is in good shape. All the elevators are working. Our IT system are top notch; so we are prepared for the high season,” he said.

(Bloomberg) -- Oil tankers hauling fuels like gasoline and diesel are poised for their biggest demand surge in three decades next year, with disruption to Russian oil flows boosting the distances vessels will have to sail. 

A closely-watched shipping industry gauge known as ton miles -- effectively the volume of cargo transported multiplied by the distance it sails -- will surge by 9.5% in 2023, according to estimates from Clarkson Research Services Ltd. It would be the biggest annual increase for tankers hauling refined fuels since 1993, data from the research unit of the world’s largest shipbroker show. 

With sanctions on Russian oil products set to come into effect from February, a global rerouting of cargo flows seems inevitable, boosting distances. There’s also the potential for bigger volumes as new refineries in Asia and the Middle East begin producing exporting, while China has room to grow its outflows.

“It could easily be five or six times the distance and that means that you’ll need much more ships to transport the same volume that you imported previously,” said Anders Redigh Karlsen, an analyst at Kepler Cheuvreux. “That is going to drive demand for product tankers.”

When combined with crude oil flows, ton miles are expected to rise by the most since 2014 next year, the data show, up by 6.4%.

That’s against the backdrop of an oil tanker market already seeing bumper earnings. Rates to hire so-called medium range tankers that carry refined fuels for one year are the highest since 2008, Clarkson data show. Crude tanker earnings are near the highest since May 2020

(Bloomberg) --

Turkish Airlines plans to carve out short-haul brand AnadoluJet into a standalone company as demand rebounds from the coronavirus crisis.

The unit is currently flying with occupancy levels approaching 90%, compared with around 80% for the group as a whole, making it ripe for expansion, Turkish Airlines Chairman Ahmet Bolat said Tuesday in an interview.

“Under current market-demand dynamics it is much easier to spin off AnadoluJet as a separate unit to boost its growth,” Bolat said in Istanbul at an International Air Transport Association conference.

The new company would initially be 100% owned by shareholders of Turkish Airlines, in which the state has a 49% holding, though the spinoff would make a future stake sale, listing or other fund-raising move faster and easier.

Shares of Turkish Airlines rose as much as 7.7% and were trading 5.8% higher as of 3:43 p.m. in Istanbul. The stock’s value has increased more than fivefold this year.

AnadoluJet was founded in 2008 and operates a fleet of 63 narrow-body planes, more than 50 of them Boeing Co. 737-800s, supplemented by more modern 737 Max jets originally destined for Russia’s S7 before it was sanctioned after the invasion of Ukraine. It also has a handful of Airbus SE A320neos.

AnadoluJet, which has operated somewhere between a discount carrier and a regional airline, has its main base at Sabiha Gökçen airport on the Asian side of Istanbul and serves mainly domestic destinations, though Bolat said it will add more routes to European cities following the spinoff.

Plans for a similar separation of the Turkish Airlines cargo operation have been slowed, however, the executive said, reflecting waning investor interest in the sector, so that a spinoff would deliver only “marginal contribution.”

The business ranked fourth in the world among freight operations at passenger airlines in 2021, according to IATA, behind the cargo arms of Qatar Airways, Dubai’s Emirates and Korean Air Lines Co.

US Expansion

Turkish Airlines, or Turk Hava Yollari AO, will increase frequencies to North America, the fastest growing part of the overall business, according to Bolat, who spoke at IATA’s Wings of Change Europe event. The market contributed 22% of revenue in the third quarter, up from 15% pre-pandemic.

Asia traffic, which the company links with the rest of the world via an Istanbul hub offering more destinations than any other airport, is yet to pick up, though there are signs of recovery, especially in China and Japan, Bolat said.

“We have been diverting our business to other areas as Asia still lags far behind the global recovery,” he said.

Those heading to London City Airport or Gatwick Airport to catch a flight are being advised to check travel or the status of their flight due to weather conditions this morning (Monday, November 14). The Met Office has issued a weather warning this morning across London, the East and South East of England. The yellow warning for fog will be in force from 4am to 10am.

London City Airport tweeted today: "Due to adverse weather conditions, please check the status of your flight before travelling to the airport." It follows a tweet last night, which read: "It’s a foggy London night, and the fog may linger into Monday morning so we’d encourage all passengers to check the status of their flight before travelling to the airport."

Gatwick Airport Police also posted an image on Twitter of the fog, warning drivers to take extra care travelling to and from the airport. They said there are some areas of very low visibility on the road network around airport.

The Met Office warns that visibility could be reduced to 100 metres in places due to the fog, and has told people to expect slow journey times with delays to bus and train services, and the possibility of delays or cancellations of flights.

The warning covers many major motorways, including the M4, M25, M23 and M1. The alert, which is in place from 4am to until 10am, warns that fog may cause some delays to travel during Monday morning.

President Muhammadu Buhari has returned to Nigeria, following a “routine medical check-up,” in London, UK. Senior Special Assistant to President Muhammadu Buhari on Media and…

President Muhammadu Buhari has returned to Nigeria, following a “routine medical check-up,” in London, UK.

Senior Special Assistant to President Muhammadu Buhari on Media and Publicity, Malam Garba Shehu, announced this in a tweet on Sunday evening.

Buhari left the country on October 31.

“President Muhammadu Buhari just landed in Abuja. Alhamdu Lillahi,” Shehu tweeted.

Femi Adesina, a presidential spokesman, had announced that Buhari would return in the second week of November.

One of the highlights of Buhari in UK was his meeting with King Charles at Buckingham Palace.

The president disclosed this during his meeting with King Charles III at the Buckingham Palace, in the United Kingdom, according to BBC Hausa.

During a press conference after the meeting with the 73-year-old king, Buhari said the king asked him if he had a personal house in the UK to which he responded in the negative.

Buhari said the reason for his visit was to discuss the diplomatic and trade relationship between the two countries.

He said that the meeting was hitherto scheduled to take place in Kigali before Charles became king.

Buhari used the opportunity to congratulate the king on his ascension to the throne.

Since the first aircraft in Nigeria landed in Kano city, in 1925, the aviation sector has continued to experience slow and piecemeal growth, with policies strangulating airlines and the industry generally. For a future where travel is affordable, yet profitable for operators, these need to change.

These policies range from multiple taxations, the absence of refineries causing fuel prices to skyrocket and foreign exchange rates. Airlines continue to struggle with operating costs such as taxes, surcharges and maintenance costs which have risen because of the scarcity of foreign exchange.

The aviation fuel crisis which began in late February and deteriorated further through the months of March to May has further worsened and is currently threatening the ability of airlines to continue operations with the price of JetA1 rising from N200 in December 2021 to over N400 per litre in February. Currently, the price has skyrocketed to over N800 per litre.

Nigeria’s domestic airlines are in a ‘life and death’ struggle to secure the Forex they need to acquire their spare parts to maintain their aircraft. This is a major influence on how quickly a grounded aircraft can be fixed and restored to its flight schedule, which in turn has a huge impact on the schedule reliability of domestic airlines.

BusinessDay’s checks show that aviation fuel currently takes about 45 percent of operating cost, labour 17 percent, aircraft rent and ownership 8.5 percent, non-aircraft rents and ownership 7 percent, professional services 4.5 percent, landing fees 2 percent, food and beverage 1.5 percent, maintenance materials 13 percent, transport-related 1.5 percent.

Stakeholders say if the right policies are put in and implemented, the country’s aviation sector would have been able to ride on the back of these policies to cushion the effects of the global economic crisis as a result of the oil prices.

In the last 50 years of commercial air travel in Nigeria, over four dozen of airlines have come and gone as a result of politics, mismanagement of funds, corruption, high cost of aviation fuel or financial loss.

Aviation experts over the years have expressed worry over the development in the aviation industry; which they said portended a bleak future for the industry in Nigeria.

Olumide Ohunayo, an aviation analyst said forex and the crippling fuel price, which has continued to increase uncontrollably. He said at this time, the funds for foreign airlines are not being remitted which has also put stress on the naira ticket in international routes.

This is the time government needs to address the foreign exchange crisis and mitigate the continuous rise in fuel prices, he said.

“Not having a refinery for aviation fuel has held us down in this situation. The government can however assist and work on the taxes associated with airline operations. This would help reduce the cost a bit. The airlines on their part cannot continue to run a subsidized system at the expense of safety.

“A fuel surcharge ranging between 25 to 40 percent would be charged depending on the routes and the removal of five percent NCAA fees. It is better for them to operate profitably instead of them to struggle in operations,” he said.

According to him, there would be an aggregate effect on the economy if the government does not work on the variables; from security to the forex crisis to the fuel crisis.

Roland Iyayi, the chief executive officer of Topbrass Aviation and former managing director of the Nigerian Airspace Management Agency said airlines are failing because the environment in which they operate is extremely harsh and not even conducive for growth.

“We have a multiplicity of charges in the industry that are inconsistent with the purpose of growing the industry. On one hand, we have government agencies that are supposed to be cost recovery agencies geared to grow their Internally Generated Revenues, which is an inconsistent objective with the industry growth,” Iyayi said.

London residential rents set a new average weekly record in October, with tenants in the capital paying £571 a week.

This exceeded the previous high of £553 per week seen in September 2022, according to property agents Foxtons.

This is a 4% uplift in comparison to September, which would typically be the peak for the lettings market.

Central London rental costs grew almost 30% year on year to an average £643 a week.

There were 22 renters competing for every new property in October 2022 — the stiffest competition since 2018.

Applicants’ weekly budgets remained much higher than they typically do in October. The average weekly renter budget in October 2022 was £485, which is over £20 more than the average budget in October 2021.

For the second month in a row Foxtons saw renters spending over their budgets to secure a property. In October 2022, renters spent 101% of their registered budget, a 3% increase compared to October 2021.

“Competition for London lettings is intense,” said Gareth Atkins, Foxtons’ lettings managing director. “We’re seeing a return to renters spending over their registered budget at 101% on average — a number we haven’t seen since before the pandemic.”

There were 22,000 new properties listed in October, the lowest monthly volumes so far this year.

Sarah Tonkinson, managing director, Institutional PRS and Build to Rent, said: “This October’s £571 average rent prices actually surpassed September’s record high, which is a huge departure from the normal trend.

“Typically, Londoners don’t want to move house around the holidays, and we often help negotiate different tenancy lengths between landlords and tenants, like 15 months instead of 12, to avoid properties coming on the market this time of year.

“Instead, there were 22 applicants per new listing last month, which is higher competition in October than we’ve seen even pre-pandemic in 2019.”

The national carrier project may be stopped by the court as domestic airlines have taken the Federal Government and its foreign technical partner and majority shareholders to court.

About eight local airlines and their association took the government to court on Friday, listing Nigerian Air, Ethiopian Airlines, Minister of Aviation, Hadi Sirika, and Attorney-General of the Federation, Abubakar Malami, as defendants.

Among other prayers, the indigenous airlines want the court to stop the national carrier deal and withdraw the Air Transport Licence already issued to Nigeria Air by the Federal Government/Nigerian Civil Aviation Authority.

They also claimed that the firm which served as Transaction Adviser for the transaction, was incorporated in March last year and alleged that the company was linked to the aviation minister.

The local airlines further alleged that ATL issued to Nigerian Air did not pass through the normal security clearance.

According to them, the Federal Government’s partnership with Ethiopian Airlines on the project will send domestic airlines out of business by opening up the domestic air travel market to Ethiopian Airlines.

In September this year, the Federal Government named Ethiopian Airlines Consortium as preferred bidder for Nigeria Air. The Minister of Aviation, Hadi Sirika, announced this in Abuja.

But it was learnt on Sunday that the Registered Trustees of the Airline Operators of Nigeria, including Azman Air, Air Peace, Max Air, Topbrass Aviation and United Nigeria Airlines, filed a suit against the move on Friday.

The defendants in the suit include Sirika, Nigeria Air Limited, Ethiopian Airlines, and the Attorney-General of the Federation, Abubakar Malami. The suit was filed in the Federal High Court of Nigeria in the Lagos Judicial Division.

Four defendants

The first, second, third and fourth defendants in the suit were Nigeria Air Limited, Ethiopian Airlines, Senator Hadi Sirika, and Attorney-General of the Federation.

The court summoned Sirika and other defendants named in the suit to cause an appearance to be entered for them to the summons within 30 days after service of the summons on them.

The court said the summons was for the determination of several questions. It outlined the questions to include, “1. Whether on proper construction of the Companies and Allied Matters Act 2020, SEC (Securities and Exchange Commission) Nigeria Consolidated Rules & Regulations 2013 (as amended in 2022), Nigerian Investment Promotion Commission Act, International Civil Aviation Organisation Convention, Civil Aviation Act, Public Procurement Act, Concession Regulatory Commission (Est.) Act, 2005, Federal Competition and Consumer Protection Act, Procurement Processes for Public Private Partnership in the Federal Government under the National Policy on Public Private Partnership (N4P) and Nigeria Civil Aviation Regulations, 2015 and other regulatory statutes on aviation, companies and investment laws in Nigeria; the action, conduct and or decisions in the sale of the shares and operations of the 1st defendant is not invalid, null & void.

“2. Whether on construction of International Civil Aviation Organisation Convention, among others, the entire administrative actions and decisions of the third and fourth defendants in the sale of the shares of the 1st defendant to the 2nd defendant and its consortium is not invalid, void and of no effect having regard to the process embarked upon and the extant local and international laws and regulations on aviation including the terms and condition stated in the request for proposal.

“3. Whether, on a construction of Section 78 (1) & (2) of the Companies and Allied Matters Act 2020, Rule 406(2) of SEC Nigeria Consolidated Rules & Regulations 2013 (as amended in 2022), section 20 of the Nigerian Investment Promotion Commission Act, Article 7 of the International Civil Aviation Organization Convention, section 33 of the Civil Aviation Act Cap C13 LFN 2004 (as amended in 2006); the 2nd Defendant and its consortium were competent and qualified to bid for shares in the 1st Defendant and commence business accordingly.

“4. Whether, on a construction of Sections 4 & 5, among others, of the Infrastructure Concession Regulatory Commission (Est.) Act, 2005; Sections 24 & 27, among others, of the Public Procurement Act; and Clauses 2, 3 and 4 of the Procurement Processes for Public Private Partnership in the Federal Government under the National Policy on Public Private Partnership, sections 76-81 of the Federal  Competition and Consumer Protection Act; the selection of the 2nd Defendant and its consortium as the sole bidder in the bidding exercise for the Nigeria Air Project conducted by the 1st, 3rd& 4th Defendants is proper, lawful and valid?

“5. Whether the entire process for the sale and transfer of shares of the in the 1st Defendant to the 2nd defendant and its consortium by the 3rd and 4th Defendants is in line with the provisions of the Infrastructure Concession Regulatory Commission (Est.) Act, 2005, Federal  Competition and Consumer Protection Act, International Civil Aviation Organisation Convention, the National Policy on Public Private Partnership, sections 76-81 of the Federal  Competition and Consumer Protection Act and does not affect the entire process including the selection, approval or grant to the 2nd Defendant and its consortium by the 3rd and 4th Defendants is not invalid and thereby entitling the entire process to fresh bidding  exercise?”

The domestic airlines demanded, in the court document, an order directing the immediate revocation and cancellation of the Air Transport License issued by the Nigerian Civil Aviation Authority to the 1st Defendant.

N2bn damages

They also demanded an order of N2bn only as damages “for the injury suffered by the Plaintiffs and still suffering as a result of the wrongful exclusion of the Plaintiffs, wrongful action; unlawful bidding and selection processes and their wrongful projection of the plaintiffs as not having properly, rightly and timely bid for the Nigeria Air project.”

The Federal Government’s choice of Ethiopian Air¬lines as the core investor and technical partner in the Nigeria Air project, had been described as a win for the East African carrier and a huge loss for Nigeria.

Some critics argued that instead of giving Ethiopian Airlines a 49 per cent stake in Nigeria Air, there could have been better partnership arrangements that would benefit Nigeria more.

The Assistant General Secre¬tary, Aviation Round Table, Olumide Ohunayo, said though Ethiopian Airlines had been a successful airline in Af¬rica, its partner carriers on the continent had all failed.

Ohunayo named the failed partner carriers to include Congo Air¬ways, Tchadia Airlines, Zam¬bia Airways and others, adding that it was on Asky Airline that was surviving as it (Asky) just upped its fleet of aircraft to about 12.

The Chief Execu¬tive Officer, Centurion Security Limited, Capt. John Ojikutu (retd.), had said in an interview with The PUNCH that similar partnerships in the past by the defunct national carrier, Nigeria Airways, with KLM and South African Airways in the early 1990s did not benefit Nigeria.

He said this new move with Ethiopian Airlines would not be different from the others.

Aviation minister

As analysts and operators raise diverse concerns about the national carrier project, the government through its aviation minister, Sirika, gave reasons why it picked Ethiopian Airlines as the preferred bidder for Nigeria Air.

Sirika told journalists in Abuja on Thursday that Ethiopian Airlines was the only airline that responded to the government’s requests for expression of interest and fulfilled all the stipulated conditions laid down by Nigeria.

He said other airlines in the world ignored Nigeria’s call to join hands with the country to float a national carrier despite the fact that he personally went to the airlines and met with them at several air shows and international aviation events to convince them.

Sirika, however, said the airline proved that it was not only efficient and prosperous by registering over $1bn profit after tax even in the wake of COVID-19, but had continued to flourish despite the challenges in the aviation sector globally.

He said, “We did not cede Nigeria Air to Ethiopian Airlines. It is the only airline in the world that made $1bn profit even during the COVID-19 pandemic. It is the most prosperous, efficient and leading airline in the African continent and it was the only airline that responded to our request for partnership to run the airline after many months of advertisement of expression of interest.

“Even after some interested persons asked Nigeria to extend the time of EoI and we did, none of them showed interest. Officials of the Ministry of Aviation led by me personally visited some of the leading airlines across the world and pleaded with them to take up the partnership with Nigeria to set up the airline.

“None of them signified interest except Ethiopian Airlines, which has been allotted 49 per cent shares, while Nigerian institutional investors take up 45 per cent and the Federal Government will take up only five per cent.

“The choice of Ethiopian Airlines is good for Nigeria and it is in line with the African Union Agenda. Our desire is for Africa to come together and lead the African aviation market through our new partnership with Ethiopian Airlines. The partnership will also reduce cost of operations and airfares for Nigerian and African air travellers as opposed to the current situation.