Ethiopian Airlines is set to own a majority stake in the new Nigerian airline; Nigerian Air.
The Nigerian Aviation Minister, Hadi Sirika has announced to the public that a consortium led by Ethiopian Airlines is the preferred bidder for shares in Nigeria Air.
A day prior, during the Nigeria Air press conference, the minister disclosed that plans were being finalized to launch the country’s new national carrier. According to the minister, the airline would begin with flights from Lagos to Abuja and back.
Ethiopian Airlines will own a 49% stake in the new airline, the Nigerian Sovereign Fund will own 46% and the Nigerian federal government the will have the remaining 5%.
Ethiopian Airlines is 100% owned by its government, which implies that majority stake in Nigeria Air will be owned by the Ethiopian Government.
“Nigeria Air is a limited liability company that will have no government intervention,” Hadi Sirika said.
The minister reported that the Federal Government had spent less than the budgeted amount for the project. He also said that Ethiopian Airlines won the bid for the airline as it met the bidding evaluation criteria and the deadline.
According to a statement released by Nigeria Air Limited, Nigeria Air will be launched with three Boeing 737-800 in a configuration very suitable for the Nigerian market. It was also revealed that the airline would be owned by a Nigerian private Investor Consortium.
The airline has already begun its recruitment process for captains and crew members. According to the aviation minister Nigeria Air would have an initial capital of $300 million and 30 aircraft within four years.
Also to note, Nigeria Air will not be the first indigenous airline owned by Ethiopian Airlines in Africa. Ethiopia also has shares in airlines in other countries including owning 45% of Zambia Airways, 49% of Guinea Airways, 100% of Ethiopia-Mozambique Airlines, 49% of Chad Airlines and 49% of Air Malawi.
