Yemisi Izuora
The Federal Government, has kept in abeyance thr take off of the national carrier project, Nigeria Air.
The disclosure was made by the Minister of State for Aviation, Hadi Sirika, while addressing newsmen.
According to Sirika, the decision to suspend the procurement of Nigeria Air, was taken at the Federal Executive Council (FEC) meeting.
He also took to his Twitter feed to confirm the development.
“I regret to announce that the Federal Executive Council has taken the tough decision to suspend the National Carrier Project in the interim.
“All commitments due will be honoured. We thank the public for the support as always,” he tweeted.
Oriental News Nigeria reports that the airline was scheduled to commence operations on December 19, 2018. The proposed national carrier targeted 81 routes, comprising 40 domestic, regional and sub-regional and 41 international routes.
Sirika, had in July this year, unveiled logo for the airline for the country in Farnborough, United Kingdom.
The Federal Government, according to Sirika, would only own a maximum of five per cent shareholding and that the venture would be public-private partnership (PPP). Therefore, 95 per cent of the investment would be private-sector driven.
The proposed national airline according to government would require initial capital of between $150 million and $300 million (aboutN108.2billion) while the government sought a strategic partner to operate the carrier.
“The initial capital is likely to be in the range of $150 to $300 million, invested in tranches over time from start up through the first years of operation,” the government stated.
The government was expected to “facilitate the process for opening up the capital of the airline to private sector financial investors”.
A private operator, sought through a Public Private Partnership (PPP) process, will manage the airline without interference, it said.
The government would not own more than five percent of the new carrier, called Nigeria Air. He made the comments while providing details of the airline at the Farnborough air show in England.