Air Peace CEO Allen Onyema wants Nigeria Air dissolved and instead suggests investing in a flag-bearer airline.
He criticized the airline’s shareholding structure on Arise Television’s morning show. Nigeria is investing in the airline, but Ethiopia will earn 49% without contributing any money. Foxiz Nigeria reported that the first plane of Nigeria Air was delivered to the Federal Government despite protests from local airline operators who claimed it violated a court order. Air Peace declined an offer from Ethiopian Airlines to partner in 2019 due to patriotism for Nigeria. He said Ethiopians wouldn’t invest money in Nigeria Air as per the agreement. Ethiopians were supposed to lead all management positions, while Nigeria received the deputy position. Onyema criticized the disclosure of Nigeria Air despite the ongoing legal case, calling it disrespectful to the court. He also noted that Ethiopian Airlines was set to hold top management positions in the partnership.
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“ET owns 49% of the shareholding, with Fairfax also owned by ET. Fairfax is their transaction adviser and will receive a 3% commission.” 5% of the $250 million in share capital will be brought in by Nigerian companies SAHCO and MRS, while ET will provide $122 million in rentals instead of cash. I have the document. ET won’t bring money to Nigeria; just pay plane rentals for five years.” Black and white: Air Peace is worth over $2 billion, even if they pay $122 million.” Boeing is in my office for the delivery of our over-billion-dollar 737 Max. Embraer’s billion-dollar aircraft have arrived in Nigeria. ET is taking 49% of your country’s wealth without contributing. President Ahmed Bola Tinubu must dissolve Nigeria Air and pursue his own vision, according to the speaker. Onyema argues that a national carrier is obsolete globally, contradicting the minister’s position.
“Going that route is no longer viable for countries. Those currently doing so are phasing it out.” National carriers are now called flag carriers and are owned by the government. British Airways is owned by IAG, and only a few countries, including South Africa, have national carriers. However, South African Airways is causing financial strain. Attempts to close it have been opposed by unions, leaving the government exhausted. It’s questioned why Nigeria in 2023 would move backwards instead of forwards, and instead the ease of doing business should be improved to encourage investment in aviation by private parties. “We’re not afraid of competition, and we’re not fighting only for ourselves. AON wants Nigeria to improve the ease of doing business and remove obstacles for airlines to grow.” Air Peace was interested in partnering with Nigeria Air but was ultimately unsuccessful due to the secrecy surrounding the national carrier and being blocked from the website.
