Ministers seeks partners for Nigeria Air as it requires initial start-up of between $150m and $300m

AVIATION minister Hadi Sirika has revealed that the new national carrier Nigeria Air will require an initial capital of between $150m and $300m to get off the ground successfully when it launches in December.

Earlier this week at the Farnborough Air Show in Kent, in the UK, Mr Sirika, revealed the name and logo of the new airline, following extensive negotiations with several international airlines and aircraft manufacturers. He pointed out that Nigeria Air will fly to 80 different destination and will have a fleet of 30 aircraft once it becomes operational.

Shedding further light on the planned carrier, Mr Sirika pointed out that the federal government is seeking a strategic partner to operate the carrier, stressing that the state would not own more than 5% of the new carrier. According to Mr Sirika, a private operator, sought through a public private partnership process, would manage the airline without interference.

He added: “The initial capital is likely to be in the range of $150m to $300m, invested in tranches over time from start up through the first years of operation. The government will facilitate the process for opening up the capital of the airline to private sector financial investors.”

An official document on the deal noted that the government would provide the initial capital but did not state the sum or give further details. Nigeria Air will serve domestic and international markets and is expected to have a fleet of 30 aircraft in five years with hubs in Lagos and Abuja.

Also, according to the document, Nigeria is overhauling its aviation infrastructure and handing over its airports to private managers in order to improve the business environment for the industry to attract investment. It noted that current air traffic in the country was around 15m passengers, which is expected to grow at 5% per annum through to 2036.

According to the government, a majority stake could be available to an overseas backer as it seeks know-how and cash to help the start-up avoid the fate of former flag carriers. Mr Sirika, who is currently negotiating with several international airlines about holding a stake in Nigeria Air, said the new operator plans to begin flying in December with a fleet of 15 leased aircraft and has started talks with Airbus and Boeing about buying its own planes.