By Chris Aligbe, Aviation Consultant

Mr. President, just towards the last days at the end of the Ministerial Retreat, you announced to your citizens that the new National Flag Carrier, Nigeria Air, would take off before the end of the year, precisely December.

Your announcement, to many of us who have eagerly awaited the birth of a new National Carrier that will provide succour to the teeming millions of Nigeria’s air travel passengers was a great relief.  It was so since we know the untold and unnecessary pains and humiliation they go through whenever they travel outside our shores.

  This is not to say that the disruptions and pains encountered on domestic air travel are any more acceptable.  But the humongous losses to the economy and the travel public at the international level are hitherto unknown in our national life. 

It is true that we are in a state of economic downturn which is a global phenomenon.  But the exploitation of our current experience derives majorly from the fact that there is no virile Nigeria Air Carrier that is competing with other foreign carriers on the known usual destinations that millions of Nigerians travel to.  These include UK, US, UAE, Middle East, China and Canada.  It is true that same Nigeria domestic airlines have been designated to operate on many of our BASA routes. But only Air Peace with 19 international designations, both in Africa and outside Africa is operating about six regional and two international routes.  While Azman with eleven designations seem not to be anywhere.  Neither of them is going to UK, Europe, US or Canada, either directly or through commercial alliance.

Mr. President, obviously, there are reasons why, some of which are beyond the airlines and others within the airlines.  Since the issue is subjudice, I will refrain from discussing the many anti-air travel passenger and anti-national interest elements in the ongoing judicial challenge of the Nigeria Air project.  However, I am addressing the piece to you, Mr. President, because the idea of replacing the ill-advisedly liquidated Nigeria Airways, was your idea and initiative.  Many stakeholders, let alone the public don’t know or remember this.  Mr. President, recall that on August 16, 2015, a team of the Ministry of Aviation led by the then Permanent Secretary, Mrs. Binta Bello, paid you a visit at the State House.  This was months before you constituted your Cabinet and even appointed Hadi Sirika, Aviation Minister.  During that meeting, in a follow up of your persistent question about what happened to Nigeria Airways during your campaign, you directed Mrs. Binta Bello to give you a programme for the establishment of a new National Carrier.

In response, Binta Bello set up a Committee for a new National Airline.  All of us presented papers to that Committee.  All these were before Sirika was appointed.  He only came to take the baton and as a Professional, radically re-ordered the programme.  That is why, Mr. President, when you announced Nigeria Air December take off, I concluded that the compass has come 360° round and was certain that you have not only “possessed your possession” but also fully primed to deliver your campaign promise on a new National Carrier to Nigerians.  But very soon after your announcement, the same very few stakeholders who ab initio resented a new national flag carrier, emboldened by the fact that you are in the twilight of your administration, and fast advancing towards nightfall, headed to the courts in exercise of their constitutional rights to truncate your promise. 

Mr. President, many of us did not see it coming but are not surprised.  The litigants have a right to defend their self-interest and nobody can deny them.  But what is intriguing to all of us is the near-total insensitivity of the Justice Ministry in this matter.  The present poor legal representation of the Government evidenced in the calibre of Lawyers from the Justice Ministry is despicable.  The few members of Airline Operators of Nigeria (AON) that sued the Government have a SAN handling the case while on the Government side are Lawyers from the Ministry that cannot attract the same level of respect from any presiding Judge for obvious reasons.  There are Senior SANs like George Etomi and younger ones like Fubara Anga that are well known to be hands-on on aviation matters for over thirty years, who can easily dismiss the AON challenge in the court based on facts.  There are over ten of such facts which Lawyers with proper briefs could advance. 

Aviation Stakeholders are wondering why Hon. Abubakar Malami, whose zealousness over legal matters concerning the State or “privileged individuals” is well known has remained unduly “away” on this matter, in spite of outstanding SANs in his Ministry’s inventory.

Mr. President, you owe Nigerians the obligation of directing your Justice Minister, Abubakar Malami to immediately brief a SAN before the next court hearing this month.  Unless this happens, the Government will lose this irritant case the way we lost Bakassi to Cameroun, the way Nigeria Airways lost its properties in London to its Nigerian Advertising Agency, its DC10 ANN to Equator Leasing and the ongoing imbroglio between FAAN and Bi-Courtney on MM2, all due to poor or inappropriate legal representations.

Mr. President, there is a second issue with Nigeria Air that has grave consequence if not addressed both with immediacy and act of finality.  This is the question of which country holds the top five Management positions in Nigeria Air.  These positions are; Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Technical Officer (CTO), Chief Marketing Officer (CMO) and Chief Human Resources Officer (CHRO).  Of these, in a 51/49% equity holding between Nigeria and Ethiopia respectively, two positions are non-negotiable.  These are CEO and CFO.

  The CEO under the Nigeria Air partnership is the number one post.  It is the prerogative of Nigeria for many reasons, among which are; Nigeria Air is a Nigerian National Flag Carrier with 51% equity, collectively which is 2% above Ethiopian Airlines 49%, incidentally the highest single equity.  Secondly, the Federal Government equity in Nigeria Air is a SOVEREIGN COVER which is invaluable in aeropolitics.  It confers on Nigeria Air a kind of Diplomatic status which is very important to an airline or any business that intends to play in the international arena.  This is why the French and Dutch Governments hold 11.5% equity respectively in Air France and KLM.  Even British Airways used as an example of a fully-privatised airline, has a modicum of unwritten but always invoked sovereign cover which gives a protective status in international arena in aeropolitics.

Virgin Atlantic, a British major flag carrier has no such status as BA.  Sovereign covers are by far more than any monetary investment in value.  Thirdly, Airlines that fly internationally are members of global aviation bodies, such as IATA, ICAO, AFCAC, ACI as well as participate in meetings of regional bodies as African Union, AfDB, Afreximbank and UN Agencies and World Bank subsidiaries such as IFC.  All these are held and attended on Representational basis, mostly by CEOs.  Is it an Ethiopian that will represent the face of Nigeria in all these forums and Bodies while an Ethiopian CEO will be representing Ethiopian Airlines?  Who will safe-guard Nigeria’s national interests?  Fourthly, if the CEO position goes to Ethiopian Airlines, we will breach the second conditionality in our “Open Skies” Agreement with the US and it will be extremely difficult for Nigeria Air to fly the US routes which are collectively the number one destination for Nigerian air travellers.

It is necessary to recall that Virgin Nigeria was disallowed from flying the Lagos-US route by US Government for four reasons; two most fundamental of which are; that Branson who held 49% of the contraption called Virgin Nigeria was the highest single equity holder just like Ethiopian Airlines in Nigeria Air and that the top Management of Virgin Nigeria was in the hands of Branson’s Virgin Atlantic and therefore was not in the control of Nigeria.  It may be recalled that the only Nigerian at the senior level in Virgin Nigeria was Larry Agose who was General Manager, Corporate Affairs.

 The two other reasons are that Richard Branson for years opposed the liberalisation of the North Atlantic Route; UK-US and that Richard Branson carried a calumnious global campaign against BA-AA Alliance.  If Nigeria Air is disallowed into US, Ethiopian Airlines will be happy as it will boost its Togo-based investment and operation in ASKY where it will position more aircraft to fly millions of Nigerian passengers through Togo to its US destinations.  But this will be utterly repugnant to Nigeria and Nigerians and will be a cause of major protest and demand to review the ET-Nigeria Air Agreement when a new government comes.  This is why ET should be very wary about any hawkish action.

Without mincing words, ET cannot successfully question the credentials and reputed honesty and experience of Capt. Dapo Olumide currently setting up Nigeria Air.

On the other hand, the CFO position in this Partnership is the entitlement of Ethiopian Airlines.  Apart from being the second most powerful position, Ethiopian Airlines has a right to protect its 49% equity.  Beyond this, the position of Chief Technical Officer (CTO) cannot be denied ET for many reasons, some of which are: i. The aircraft types to be flown by Nigeria Air are modern generation B737 – 700/800 and B787 Dreamline. ii.   Nigeria has no competence on these aircraft types while ET is globally known to have very advanced competences on them, including maintenance capabilities.  Beyond these, the positions for Chief Human Resources Officer (CHRO) and Chief Commercial Officer (CCO) should be held by Nigeria for a balance – 3 Principal Officers for Nigeria and 2 for ET.  The General Manager, Finance and Industry Relations should be Nigeria’s positions.

The Officer responsible for Bilateral Air Services negotiation must be Nigeria as that schedule touches on diplomatic relations where our Missions are in-charge.  Procurement schedule should be left for ET.  The sad fact about our Nation is that officers negotiating on our part usually are very limited in the relevant knowledge.  Yet, they do not think it is very vital to engage those who know.  They think it is belittling and ego-deflationary.  The present ICRC, MOFI and Aviation and Justice Ministries negotiating team do not possess the required knowledge and competence.  They are not expected to as they have never been so exposed.  And there is nothing shameful or denigrating about it.  Ethiopia, in spite of their long-standing exposure to negotiation in Africa and beyond still come to the negotiation table with world-renowned Consultants like Erst and Young.  Even IFC, the investment arm of the World Bank, with its years of exposure and vast competence in negotiation, had to engage three Consultants when it was working to privatise Nigeria Airways during Obasanjo administration.  They included;