Gist: Aviation Ministry Explains Acquisition of Aero  (Read 1244 times)

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Aviation Ministry Explains Acquisition of Aero
by dayod247 « on: November 15, 2013, 09:39:36 AM »

 Aero Contractors, which was recently acquired by the federal government due to the huge debts it owed Asset Management Corporation of Nigeria (AMCON) is not meant to be designated as national carrier. Instead, it would be merged with the planned airline that would be unveiled in the near future.
THISDAY learnt on Wednesday that the acquisition was at the final stage as the Ibru family, the owners of the airline might be disposed to giving majority of its stakes to the government, which plans to build a strong carrier that would effectively operate domestic, regional and international routes.

Inside source revealed that more domestic airlines might be incorporated into the airline but plans have been concluded on the acquisition of off the factory fleet to run the national carrier, as government also plans to encourage other operators owned by the private sector in order to have a robust competitive environment.

A reputable professional services firm has been working on the national carrier project for about two years and there are indications that an international carrier will invest in the airline in addition to other international investors who believe in the bright future of the airline because of the ever-growing air traffic market from Nigeria.
Also, significant part of its shares would be sold to the Nigerian public, while government would retain about five per cent of the stakes.

THISDAY learnt that this was to ensure that the government does not have any control of the airline, its management and its policies as the airline is meant to compete with mega carriers that operate into the country.
An informed source from the Aviation Ministry told THISDAY on Wednesday: “As part of the aviation reform, the federal government will provide the enabling environment for the national carrier to become operational. With domestic, regional and international routes, it would be economically sustainable to incorporate any of the existing domestic airlines into the full structure of the national carrier to take advantage of their experience and employee base.

“To be publicly owned, the national carrier will be truly our first public airline, with shares acquired by Nigerians, but the government will allow it to fly Nigerian flag and it will enjoy all the advantages of a global airline,” the source said.
President, National Association of Aircraft Pilot and Engineers (NAAPE), Isaac Balami told THISDAY that the national carrier was good because it would help develop local capacity.

“It will also help the country produce an airline that will compete with any airline in the world. We can also have flag carriers and empower them like in the US; they have many flag carriers that are as big as national carriers. The emergence of national carrier is key. The flag carrier is also a good option. British Airways is not owned by the British government but it is occupying the place of a national carrier like in the US, we can replicate a similar thing in this country.

“The ideal thing now is to put frameworks in place and ensure that our existing airlines today do not go down again. The challenge is when you don’t know the problem but now that we know the problem, let us just proffer solutions and that takes care of things,” Balami said.

Source: Thisdaylive


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