German Aviation Expert Reveals Plan For Nigeria Air, How Much Carrier Costs FG

Prof. Tilmann Gabriel, the technical advisor to Nigeria Air, said the Airline Operators of Nigeria (AON) should accept the country’s national carrier as a competitor that will create new business.

In an article titled; ‘Nigerian Airline Status 2022 – What is next in 2023’, Gabriel said Nigeria Air will give domestic airline passengers more options to choose from. 

According to the German, Nigeria Air will expand into regional and international markets, “Nigeria Air will be a new competitor in the Nigerian market, adding to the existing airlines. 

“As Michael Porter taught us many years ago, the five factors of competition are for all businesses to recognise, amongst them that all competition creates new business for all, as the customer has added choices.

“In short, the new year 2023 will have added choices for domestic flights for all customers, soon also on the regional and international markets,” he said.

Gabriel’s statement comes ahead of the court hearing slated for January 16, 2023, which would have counsel from the Airline Operators of Nigeria try to convince the judge to terminate the deal between the Federal Government and Ethiopian Airline. 

Last year, Prime Business Africa reported that the AON, which represents the umbrella body of domestic airline operators, filed a lawsuit against the Minister of Aviation, Hadi Seriki, the Federal Government, and Ethiopian Airlines, amongst others.

The Airline Operators of Nigeria said the deal between the government and Ethiopian, which has been awarded a 49 per cent stake in Nigeria Air, poses risk to the domestic operators and the local aviation market.

Meanwhile, Gabriel disclosed that the start-up budget for Nigeria Air is $250 million, out of which is $12.5 million from the Federal Government, which represents the 5 per cent stake owned by the government in Nigeria Air. 

“Nigeria Air has the strategic direction, with a solid business plan for the next ten years and a start-up budget of 250 million US dollars. 

“The Nigerian Government only invests 5% into this start-up funding (12.5 million US dollars), in line with its 5% share in Nigeria Air,” Gabriel wrote.