News Details

…Seek clarification on equity structure of Nigeria Air

…Consortium to hold 49% equity headed by Ethiopian Airlines

 

As Nigeria Air plans to launch next month, the House of Representatives Committee on Aviation headed by Nnolim Nnaji has asked the Ministry of Aviation to furnish it with the actual financial value of the 49 percent equity being ceded to the Ethiopian Airline in the proposed Nigeria Air Limited.

This is coming as the House of Representatives urged the Minister to ensure that the members of the Airline Operators of Nigeria (AON) that were willing to acquire shares in the national carrier were accommodated.

The Committee made the demand during a meeting with the Minister of Aviation, Hadi Sirika, and the representatives of the Airline Operators of Nigeria (AON) which wanted to know the structure of the planned national carrier.

The Minister had in his submissions disclosed that the Ethiopian Airline would hold 49 percent shares while the Nigerian Government and the Nigerian public would retain 5 percent and 46 percent equities respectively.

The Minister also informed the committee that the 49 percent shares would be held by a Consortium being spearheaded by Ethiopian Airlines.

On the issue of the value of the shares, Senator Sirika assured the committee that the full business case, (FBC) which would be out in six weeks’ time would spell out the details of the shares.

Nnaji had equally stressed that the essence of the interaction was to ensure that Nigerians were not shortchanged.

Nigeria’s Aviation Minister, Hadi Sirika

The committee equally said ” You must also ensure that Nigeria Air when established will not have undue advantage over the local airlines” the committee stressed urging the Nigeria Civil Aviation Authority, (NCAA) to ensure a level playing ground for both the national carrier and the other indigenous airlines.

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