$12.5 million is the value of the Federal Government’s 5% ownership in Nigeria Air, the national airline.
According to a Nairametrics article, Prof. Tilmann Gabriel, who acted as the project’s Transaction Adviser, reported this in a write-up.
According to Gabriel, the Nigerian Government invested $12.5 million in the airline as start-up capital, which was in line with their 5% ownership stake in the venture.
Speaking about the establishment of the airline, Gabriel asserted that, in contrast to what the Airline Operators of Nigeria and other parties had claimed, the formation process had been transparent.
He said that, as part of the Public Private Partnership, the government had made sure that the airline had a clear ownership structure.
He noted that the airline had a solid financial foundation with the total investment sum.
Gabriel added that Nigeria Air had a solid business plan for the next 10 years with a total start-up budget of $250 million.
He further stated that the national carrier was ready to launch with a fleet of Boeing 737 for domestic services, adding that the carrier was currently recruiting many Nigerian aviation professionals to help start its operations, Nairametrics says.
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He said, “The Operations Control Centre at the Abuja Airport is ready to be opened with the most modern IT systems. The booking engines on the airline website and App will be available shortly with loyalty credit cards and other innovative pay systems.
“The immediate goal is to introduce all up-to-date customer service systems to make flying a pleasurable and easy-to-use enjoyment. Nigeria Air will be a new competitor in the Nigerian market, adding to the existing airlines. As Michael Porter taught us many years ago, the five factors of competition are for all businesses to recognise, amongst them is that all competition creates new businesses for all, as the customer has added choices.
“In short, the new year 2023 will have added choices for domestic flights for all customers, soon also on the regional and international markets.”
Gabriel also disclosed that Nigeria Air has applied to join the AON, “despite the kick by the umbrella body of indigenous carriers in the country to support the emergence of the airline.”
He also hinted that the Air Operators’ Certificate for Nigeria Air had reached phase three of the exercise, out of the five phases an intending operator is expected to go through, assuring that the airline would be issued the certificate by Nigeria Civil Aviation Authority, which would enable it to operate as a scheduled operator, according to Nairametrics.
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