The biggest airline in Africa, Ethiopian Airlines, expects to get the promising Nigeria Air share in the coming three weeks, the airlines CEO reveals.
After being awarded by the government of Nigeria last year, Ethiopian Airlines has started discussions to set up a Nigerian flag carrier which was founded in 1958 and ceased operation in 2003. The two have agreed on almost all terms and have made significant progress in setting up the new national airline.
However, the process is facing a hurdle in the form of a court case which is delaying the introduction of Nigeria Air into commercial service.
“We expect the court case will be closed in the coming three weeks which will make us to complete the process and establish the airline,” said Mesfin Tasew, CEO of Ethiopian Airlines, adding, “Ethiopian airlines is ready to begin its operation as soon as the court case issues solved.”
The ownership structure of Nigeria Air consists of Ethiopian Airlines as a majority shareholder with a 49% stake, while Nigerian entrepreneurs and companies, namely MRS, SAHCO and the Nigerian Sovereign Fund hold a 46% stake. The remaining 5% stake is held by the Nigerian Federal government.
According to reports, Nigeria Air would have an initial capital of $300 million and plans to have 30 aircraft within four years.
The CEO also stated that Ethiopian Airlines is committed to expanding its operations in Nigeria and providing quality services to its customers. Additionally, the airline plans to increase the frequency of its flights to Lagos and Abuja.
Nigerian airlines composing the Airlines of Nigeria (AON) are pushing back against the large stake that Ethiopian Airlines will hold in Nigeria’s new flagship carrier Nigeria Air. The AON believes the Nigerian flagship carrier should be wholly owned and operated by Nigerian nationals and took the case to Court
The suit, filed on November 11, 2022, opposed the proposed partnership between Ethiopian Airlines and the Federal government of Nigeria, where ET became a majority shareholder in Nigeria Air with a 49% stake after being selected as the preferred bidder to establish the airline.
The court case hindering Nigeria Air’s start involves a group of smaller Nigerian airlines that filed a suit, resulting in a temporary order to suspend the establishment of Nigeria Air.
Once the case is finalized, the CEO also stated that the airline is planning to expand its routes to other African countries and increase its fleet size to meet the growing demand for air travel in the region “We are also completing the process to get 49 percent of air Congo,” he told Capital.
Additionally, Ethiopian airlines owns stakes in several other airlines, including 45% in Zambia Airways, 49% in Guinea Airways, 100% in Ethiopia-Mozambique Airlines, 49% in Chad Airlines, and 49% in Air Malawi.
Ethiopian Airlines has been working with the government of Nigeria for nearly five years to establish a flag carrier for the West African nation.