Can Nigeria Air take off before May 29th?
Nigeria’s Aviation Minister Hadi Sirika says the proposed national carrier, Nigeria Air will begin full operations before the end of the Buhari administration. Aba Ocheme, General Secretary, National Union of Air Transport Employees on how issues of litigation and foreign airlines’ trapped funds concerns may stall the take-off.
Mon, 27 Mar 2023 14:39:54 GMT
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AI Generated Summary
- The Nigeria Air project faces obstacles such as a court order halting the process, the need for an operating license, and stakeholder opposition to Ethiopian Airlines' majority shareholding.
- Foreign airlines in Nigeria are encountering difficulties repatriating funds due to unfavorable exchange rates and regulatory constraints.
- If unresolved, the trapped funds issue could not only disrupt international travel but also lead to job losses within the aviation industry, adding strain to Nigeria's already burdened unemployment market.
Nigeria's Aviation Minister, Hadi Sirika, recently announced that the proposed national carrier, Nigeria Air, is set to commence full operations before the end of President Buhari's administration. However, Aba Ocheme, General Secretary of the National Union of Air Transport Employees, shed light on the challenges facing the aviation sector that could potentially stall the take-off of the airline. During an interview on CNBC Africa, Ocheme highlighted three key issues surrounding the Nigeria Air project. The first concern is the existing court order halting the process until unresolved issues raised by private airlines in Nigeria are addressed. The second issue involves the necessity for the airline to obtain an operating license from the Nigerian Civil Aviation Authority, a process that is far from completion. Lastly, stakeholders in the aviation industry, including Ocheme, have expressed opposition to Ethiopian Airlines being selected as the majority shareholder for Nigeria Air, raising questions about the partnership's alignment with national interests. Due to these obstacles, Ocheme expressed skepticism about the feasibility of launching Nigeria Air before May 29. Beyond the Nigeria Air saga, foreign airlines operating in Nigeria have been grappling with trapped funds and unfavorable exchange rates. Ocheme emphasized the importance of adhering to established regulations that allow foreign carriers to repatriate their earnings without facing undue obstacles. Failure to address this issue, which has resulted in trapped funds exceeding $700 million, could not only impact international travel but also jeopardize job security within the aviation industry. Ocheme warned that if airlines are unable to access their funds, employees could face layoffs, further exacerbating Nigeria's already saturated unemployment market. The inability to resolve these challenges not only threatens the aviation sector's stability but also undermines Nigeria's credibility in international business dealings. It is imperative for authorities to prioritize addressing issues of trapped funds and fostering a conducive environment for foreign airlines to operate effectively within the country.