Can Ethiopian Airlines truly manage proposed Nigeria Air when both are competitors?
The recent announced submission of bid by Ethiopian Airlines (ET) to partner Nigeria in setting up its national carrier has raised serious concerns on the chances of Nigeria Air to survive when both entities are supposed to be competitors in the same market?
Business Hilights gathered that while submitting the bid proposal, the Chief Executive Officer, Tewolde Gebremariam, said ET was in the forefront to manage the proposed Nigeria Air billed to commence operations on December 24 this year.
Explaining more at a conference in Addis Ababa, Ethiopia, he said “We are among a small group with an interest in establishing a national carrier (in Nigeria)…we do not know the results (of the tender), though we are frontrunners.”
The Federal Government had in London last month, unveiled the name and logo of the new national carrier, indicating that it was seeking a strategic partner to invest up to $300 million on the airline.
However, experts in aviation who spoke with our correspondents on the matter advised the federal government to be very careful in looking for a partner to avoid handing over the new airline to a possible competitor who can tactically suppress the target growth and expansion for selfish reasons.
A travel agent based at Muritala Mohammed International Airport (MMIA) Lagos told Business Hilights in confidence that “If the federal government makes the mistake of handing over the management of Nigeria Air to an established rival or better put, another seemingly successful national carrier, it means that government is not serious”.
“This is business and common sense will tell you that asking your competitor to look after your business means a sure way of killing your business.
“continuing, the agent who preferred not to be named said “The way and manner government is going about this Nigeria Air is so shrouded in secrets and not even one known private sector professional is carried along in a business that is being planned to be handled by the same private sector they are avoiding from day one.
It would be recalled that the federal government had once denied any secret management plan with either Ethiopian Airlines or another national carrier in Africa, but was silent on who is in its mind for the partnership.
Besides, there has been no indication that upon telling Nigerians that government will place order for the first five aircrafts which Nigeria Air will start with at the just concluded London AirShow, there had been nothing to show that orders were placed even as the end of the year is very close.
The Minister of State for Aviation, Capt. Hadi Sirika had repeatedly assured Nigerians that the airline will be airborne effective December 24, 2018, but apart from having no aircraft on ground or known plan for such, there is yet no sign of acquiring office complexes, staffing or other forms of certification.
On the other hand, government is planning to send a ‘Fly Nigeria Bill’ to the National Assembly. The target according to the minister is to compel every public office holder and civil servants to fly Nigeria Air instead of any airline of his or her choice.
Even though the airline is yet to be on ground, analysts say such restriction may cause shocks on the survival of other domestic airlines that get the bulk of their passengers from the public sector flyers especially along the busiest Lagos-Abuja route.
