The minister of Aviation, Hadi Sirika and Airline Operators of Nigeria (AON) on Wednesday locked horns over the planned take off of Nigeria Air at the Senate Committtee on Aviation interactive session held Wednesday in Abuja.
While the minister insisted that Ethiopian Airlines will take 49 percent equity shares, the Airline Operators of Nigeria argued that the arrangement will decimate domestic airline business.
Speaking with journalists shortly after the stakeholders session with the Senate committtee, the minister insisted the project is slated for take off in December.
The minister explained that under the present arrangement, the Nigeria Air Limited, has equity shares control of 49% by Ethiopian Airlines, 5% by the Federal Government and 46% individual investors.
According to Sirika “Nigeria Air is a company that is registered and known to the laws of Nigeria which will become the much awaited airline.
“It is going to happen by the grace of God between now and December of this year. It will fly and also compete fairly with all of those existing airlines.
“The intent is not to kill any business. The intent is to help to promote all businesses to be able to provide the needed service and employ our people.
“This is the intent and the more the merrier. The more that you have people doing businesses, then the one that does it better take the advantage and they give more service and the people get served more better.
“If everyone of them is doing very well without any favouritism, then it means that the competition will be healthy and will bring down the price of tickets and increase the propensity to fly and make more people to fly and then make more money for the airlines and give more service to the country Nigeria.
“The idea is a very good one” he said.
Earlier, the Airline Operators of Nigeria said though they are not against the project but expressed worries on the 49 percent equity shares by Ethiopian Airlines and as major investor.
Specifically, AON is also not comfortable with the 15 years tax holiday for Ethiopian Airlines, saying it will send domestic operators out of market.
Defending the position of AON, a former Managing Director of Nigeria Airspace Management Agency (NAMA), Roland Iyayi, said the Nigeria Air project as presently constituted will affect domestic airline business.
“Ethiopia does not have agenda to grow Nigeria. The Agenda of Ethiopia over the years, has been on Aviation Colonialism in Africa.
“The Nigeria Air project if well implemented, would be a good legacy but as it is presently conceived, it will end up to be legacy that will lead to demise of local Airlines” Iyayi added.
Meanwhile, the chairman of Senate committtee on Aviation, Senator Biodun Olujimi ( PDP Ekiti South ), said “the Senate will resume plenary on the 14th November and look at all the issues, have a whole day meeting with the stakeholders and sort out the issues”.
