Minister's clarifications on Nigeria Air

By Sen. Hadi Sirika

Dear Nigerians 

Since the very successful unveiling of the national carrier name and logo at the Farnborough Airshow and the wide acclaim of Nigerians and Investors. A few nameless and named Nigerians have unfortunately gone to social media to spread falsehood about the national carrier project. Constructive criticism is the hallmark of democracy but spreading falsehood does our nation and people no good service.

The current campaign of falsehood, unfortunately reminds me of what happened when we decided for safety reasons to close Abuja Airport and make repairs that had been abandoned for years. The same group of Nigerians went to social media again spreading falsehood. We stayed on course and delivered the runway which has served now faultlessly. As we delivered on the Abuja Runway repairs so shall we on the national carrier and we will not bow to falsehood.

While we provide the clarifications below for record purposes, only delivering a world class national carrier is good enough for Nigerians, this will stop the export of jobs and exploitation of Nigerian air travelers. We are not deterred but we are focused on our target and mission.

Part of the falsehood being spread is the lack of a domain name, as part of the airline PPP project development phase – Nigeria Air Limited - has been incorporated with the corporate affairs commission for now as a wholly government owned company with the corporate affairs commission using nominal directors who are directors of the ministry of aviation. On conclusion of the PPP procurement process, when full equity structure pre financial close is finalized the incorporation will be updated and certificate of incorporation made public. The present certificate of incorporation is attached. Nigeria Air Limited is indeed a legal entity.

Further to the incorporation of the company with nominal directors the domain name www.flynigeriaair.ng has been reserved and will be made active very soon as part of the project evolution and marketing process. Some people whose only desire is to steal Nigeria’s common wealth by hawking domain names will not a get a kobo from the people of Nigeria. They can eat their domain names.

In terms of ownership Nigeria’s national carrier by international convention must be beneficially majority Nigerian owned to enjoy the benefits and privileges accruing to national carriers. So in all cases majority ownership in equity terms will be Nigerian, while management of the national carrier will be concessioned via a renewable long term operate and maintain concession agreement to the minority private sector strategic equity partner to be selected via an open competitive international two stage PPP procurement exercise.

For general information and awareness, the national carrier is being procured as a PPP. Nigeria’s PPP process has three phases – one is an internal government bankability process – the business case phase and the other two external. The PPP process cycle is:

PPP Development Phase – Outline Business Phase

PPP Procurement – Request for Qualification and Request for Proposal to pre qualify and select PPP partner

PPP Implementation

For the national carrier only the Development phase has been completed and all the information about this phase has been transparently disclosed on the PPP Disclosure Portal of the regulator the Infrastructure Concession Regulatory Commission (no private party has been selected, final financial requirement not completed only business case funding estimate is available, final equity structure not in place yet).

Other information in the social media claiming ownership or others post PPP procurement decisions are false and unfortunate. Once the Request for Qualification and Information Memorandum document is completed for the procurement phase, these documents will be released to the public for an open competitive international bidding process to select a minority strategic equity partner who will invest and operate the national carrier. The public will know more.

As part of efforts to make airlines viable in Nigeria, the ministry is making moves to have the National Assembly pass a fly Nigeria act. This act will require that anybody travelling on a ticket bought with public funds must travel on a Nigerian carrier unless the  route is not served by a Nigerian carrier. However, with your private funds you can do as you like. Many countries including America has such as Act.

Answers to specific falsehood raised in the social media are provided below. 

Who are the owners of the 95% equity?

***Ans*** At start up government will own majority equity in Nigeria Air Limited Joint Venture Company. A Joint Venture Company that would be very similar to Nigeria LNG Limited. Nigeria LNG Limited is a huge JV success that is private sector managed so will Nigeria Air Limited. After one year of operations, government will through an IPO divest her equity for purchase by Nigerians subject to approval of the Securities and Exchange Commission. Government will then retain only 5% equity. The rest of 95% equity of Nigeria Air Limited will then be owned by the strategic equity investor and the general public. Majority ownership must however remain with Nigerians so that the national carrier can benefit from BASA and other bilateral agreements which require local beneficial ownership as a condition precedent. Management of the national carrier will be concessioned to the strategic equity investor with no step in rights and management control by government. Signed up acceptance and approval of the management concession agreement will be a condition precedent for the IPO. 

Why is the ownership shrouded in secrecy? 

***Ans***: No secrecy. The entire process is guided by the infrastructure concession regulatory commission guidelines/regulations. 

Because it’s a PPP, it has 3 stages - the project development stage, procurement stage and implementation stage. The project development stage was just concluded with the approval of the Outline Business Case, which the ICRC issued a certificate of compliance. Once the process gets to the PPP procurement stage, there will be an RFQ, Information Memorandum and RFP bidding process which will be made public, competitive and transparent. It is only after the PPP procurement process that the strategic equity investor will be known. At that stage the JV partners will be government and the strategic equity partner. Government’s equity share held in trust for Nigerians will be devolved to Nigerians via an IPO. The government will retain only 5% equity, the list of shareholders then will be available to SEC and the Nigerian Stock Exchange. At that point Nigeria Air Ltd becomes a public company subject to SEC, NSE and relevant CAMA rules for public companies. All PPP procurement and ownership moves will be made public. Signed up acceptance and approval of the management concession agreement will be a condition precedent for the IPO.

Why is 5% equity holder funding the business? 

T***Ans*** The Government is not funding the entire project. It’s just providing startup capital in the form of an Upfront Grant/Viability Gap Funding. Once the strategic equity investor is in place, they will be expected to build on the initial investment made. 

The OBC made it clear that the strategic equity investors will not start the national carrier; government has to start it in order to attract credible investors. 

Where are these findings $8m, $300m coming from? Budget? Borrowing? 

***Ans*** $8m represents startup capital for offices etc required for takeoff. But $300m is the entire airline cash flow funding requirements (aircrafts, operations and working capital) for three years (2018, 2019 and 2020). This funding can be in the form of equity or debt. The financial model estimates cash flow requirements as follows 2018 ($55m - $8 million is included here), 2019 ($100m) and 2020 ($145m). In order to ensure take of the airline in 2018 government will provide US $55 Million upfront grant/viability gap funding to finance startup capital and pay commitment fees for aircrafts to be leased for initial operations and deposit for new aircrafts whose delivery will begin in 2021.

The remaining financial injection by government will be determined by the quantum of equity that the strategic equity partner will bring as a result of the PPP competitive bidding process. This explanation clearly debunks the claim in the social media that government is paying $300 million for a 5% equity share. Furthermore, with ongoing discussions the cash flow requirement may be lower than $300 million; furthermore, the cash flow estimates contains a 20% buffer that is put in on the assumption that the airline may suffer an operating loss in year 1 due to competition and need to build a brand. As mentioned earlier governments contribution to equity will be in the form of an upfront grant/VGF. Government’s upfront grant/VGF contribution to equity will be funded through either a supplementary budgetary allocation or development financial institutions like AFREXIM bank, AFBD, ISDB etc, who have indicated keen interest in funding the national carrier project because of its bankability and profitability profile. 

Are the aircrafts under lease agreement? If yes, for how many years?

***Ans*** As you may be aware it’s almost impossible for you to pay for and get a new aircraft immediately because it is not an off the shelf item like indomie noodles. However, as part of discussions with major Aircraft Manufacturers, the Government will pay deposits for brand new aircrafts and the manufacturers will support Nigeria Air in getting very good dry lease aircrafts coming directly from c checks and certified by the original manufacturers. These aircraft lease period will be for an initial period of 5 years with an  early termination option after 4 years. By the time the new aircrafts are ready, they will be replacing the leased aircrafts. Till all the aircraft are owned by the airline. This is how Emirates Airlines started with two leased aircrafts from Pakistan Airlines until it was able to buy her own aircrafts. According to the manufacturers, the new aircrafts will start coming through from 2021. 

If it's private investment, why would a 5% equity holder determine the name, logo and other trademarks of the airline? 

***Ans***

The logo etc are requirements for an ATL and AOC required for NCAA to license an airline. In any case the name and logo can be amended it the strategic equity partners feel it’s not right for the business. We must recall that the airline name and logo was the result of an open national competition. However, this airline line is going to represents our Nation, the Name, logo and color should be in line with what was done with the public. 

Is Air Nigeria same as Nigerian Airways? Staff of the airline are waiting for their entitlements

***Ans*** Well you can ask the owners of Air Nigeria, because what we have is Nigeria Air which is a totally different entity from Air Nigeria and Nigerian Airways. 

You can seek further clarification and confirmation from the CAC. 

Since it's private sector driven, why not adopt any of the existing airlines in Nigeria as the National carrier? 

The existing airlines have their own business plan and liabilities which does not conform with the OBC developed by the TA. Furthermore, to attract a good strategic investor, it’s best to start on a clean slate. Adopting the existing airlines will immediately transfer their liabilities to Nigeria Air and it may never take off.

Are there sinister motives? Sure! Time shall tell.

***Ans*** You are absolutely right, time will tell!!

 

Facts that you may need to compare notes:

Other National carriers in Africa.

Kenya 

Fleet size:40

Kenya Airways is 48.9% owned by the Government of Kenya 

Ethiopia

Fleet size : 100

Ethiopian Airways is 100% owned by government.

Morocco

Fleet size: 56

Royal Air Maroc is 100% owned by government of Morocco

South Africa

Fleet size :47

South African Airways is 100% owned by Government of South Africa.

Rwanda 

Fleet size 12

Rwandair is 99% owned by the Government of Rwanda

Tunisia 

Fleet size: 29

Tunisair The company is 74% owned by the Tunisian government

Egypt 

Fleet size: 54

Egypt Air is 100% owned by the Government of Egypt 

Nigeria Air

Fleet size: 0

Nigeria Air is 5% owned by the government .

Even the British airways was solely owned the British government until it was privatised in April 1987.”

*ans* The facts above are duly noted. However, you may wish to note business are operated to suit a particular environment. Nigeria is completely different from all the countries mentioned below. 

The airline business is not a 1 size fit all business. 

What we did was to identify our needs. Now we are trying to use our strength to get the opportunities that are out there in order to minimize our weaknesses and overcome our threats. 

Some tweeted this which is very true “An age where people can hashtag, tag and tweet useful suggestions on improving aviation industry especially on the back of #NigeriaAir launch..they spend it being bitter and doomsday prophets @hadisirika, while others am sure are receptive to positive ideas. @mustyjun2000”

The HMSA Sen. Hadi Sirika has mentioned time without number that he welcomes constructive criticism, it helps him in doing his job better. 

This National carrier is for us as a nation, and it should be our pride and joy. Let’s try and contribute positively to the success of Nigeria Air.

Dana Air Recognized as Being Most Socially Responsible…Hails FG’s campaign against fake news

One of Nigeria’s leading airlines Dana Air has clinched another award for being the most socially responsible airline at the 22^nd League of Airport and Aviation Correspondents (LAAC) seminar and awards held recently in Lagos.

The award presented to Dana Air was in recognition of the airline’s contribution to the fight against sickle cell anemia and cancer in Nigeria across the country since its inception in 2008.

The LAAC seminar and awards brought together stakeholders, airline operators, industry professionals, security agencies, aviation support service providers, and international airlines to brainstorm on the theme of the seminar – “Financing Aviation Development through Private Sector Partnership,’’

The Media and Communications Manager of Dana Air, Kingsley Ezenwa, while reacting to the award said, “at least our CSR efforts and contribution to the fight against sickle cell anemia and cancer is being recognized by a credible body. 

This is the 3^rd award and we are happy that our media partners actually believe in our commitment to continually give back to the society. We thank LAAC for not only supporting the industry, but for being a credible watchdog.’’

Meanwhile the airline has commended the Federal Government for launching a campaign against fake news in Nigeria, stating that the campaign is timely and in the right direction.

Speaking on the recently launched campaign, the airline’s spokesman, Kingsley Ezenwa said, “obviously, the recent issues of too many fake news emanating from faceless people and on social media particularly WhatsApp, has prompted the Federal Government to take this step, which I feel is a step in the right direction.'' 

We have suffered it twice; last year, it was somebody in Akwa Ibom that posted a fake report on facebook without verifying and now on WhatsApp. A couple of other domestic airlines have also suffered similar faith, so we believe this is a good step, particularly for the aviation industry.’’

The Minister of Information and Culture, Alhaji Lai Mohammed while launching the campaign in Abuja said, fake news has become a threat to global peace, including Nigeria, and if left unchecked, could endanger human existence.

The Minister appealed to Nigerians to play an active part by verifying information before sharing.  These simple measures may not end fake news but will go a long way in stemming its spread.” he said

IOM seeks media collaboration to curb irregular migration in Nigeria

The International Organisation for Migration (IOM) has called for the support of the Nigerian media to curb 
curb the spate of irregular migration in the country. 

Mr Jorge Galindo, Public Information Officer, IOM Nigeria, made the call at a three-day Media Workshop on Migration in Benin. 

Galindo noted that effective reporting and coverage of migration issues by journalists would help to create the much needed awareness on the dangers of irregular migration. 

He said since 2001, IOM had assisted over 15,000 stranded Nigerian migrants returned home safely from more than 20 countries across Europe, the Middle East and North Africa through its Assisted Voluntary Return and Reintegration (AVRR) Programme. 

"AVRR supports a variety of migrants who wish to return home,  including those who traveled for economic reasons,  unaccompanied children and survivors of trafficking. 

"IOM interviews them and assists with travel logistics and flights. Many receive protection support as well. 

"Once in Nigeria, the most vulnerable are offered additional support through in-kind reintegration assistance to start businesses,  study, pay medical fees etc. 

"The European Union Trust Fund will cover the reintegration of 3,800 Nigerian returnees over the next three years. "

Galindo said the IOM would continue to work with the Federal and State  Governments and other international partners to ensure that returnees are adequately supported to get their lives back on track. 

Also,  Miss Adaora Okoli, Communications Assistant, IOM Nigeria,  said over 9,000 Nigerians have voluntarily returned from Libya since 2017,  adding that more than 50 per cent of them were from Edo State. 

Okoli said 17 per cent  of the returnees were from Delta while Oyo, Ogun and Imo indigenes completed the top five states. 

She said the IOM was therefore intensifying efforts to sensitise the people on the dangers of seeking greener pastures in Europe through the perilous journey across the Sahara Desert and the Mediterranean Sea. 

According to her, some of the returnees have undergone training in various skills and businesses to reintegrate them into the society, adding that this was being done in collaboration with the state governments. 

Dana Air Re-brands Reward Programme as membership hits 18k …. Says airline unperturbed by efforts of mischief makers

Dana Air has rebranded its Dana Miles loyalty program to Dana Miles Club.

This is as the airline confirmed that the membership of the reward program has reached a record 18,000.

Speaking to newsmen in Lagos, the Media and Communications Manager of the airline, Kingsley Ezenwa, said the airline had to rebrand as a result of its growing membership and increased benefits attached to the tiers of membership - Blue, Silver  and Gold.''

‘’We have rebranded our reward program to Dana Miles club as a result of the growing membership and benefits. We are glad that our guests are now realizing the need to go cashless and use more of their miles for upgrade from economy to business class, payment of excess and alot of other flight and none flight related benefits.''

''We have had a case where someone travelling with his family ran out of cash and couldn’t pay for his excess baggage but used his excess miles to pay and still got an upgrade from economy to business class cabin. There are loads of benefits attached to being a member of the club and we are glad to have been able to grow its membership to this all time high.''

On the recent message circulating on social media about a statement purportedly made by one of the airline's Pilots, Ezenwa said – first, none of our pilots could have said such. Secondly, a pilot has the right to ground an aircraft if he or she is not comfortable with its level of maintenance. So why would any pilot say such about the aircraft he or she will still fly?’’

‘’Last year, someone raised a false alarm and was arrested and released after promising never to engage in such anymore. Now this is the latest of their infantile de-marketing strategy. Unfortunately for them, while they are focusing on their evil acts, we are focusing on delivering quality service hinged on safety and exceptional service and we are happy that our guests are better enlightened now.’’

He further advised the public against misusing their social media platforms to spread ‘’blatantly malicious’’ and unverifiable information, as the airline is determined to again  fish out the perpetrators and prosecute accordingly  

Air Peace inaugurates first all female flights to Abuja, Owerri

Air Peace on Thursday inaugurated its first all female flights from Lagos to Abuja and Owerri to promote gender equality in Nigeria's aviation industry. 

The Boeing B777-300 aircraft piloted by Capt. Simisola Ajibola assisted by Senior First Officer Quincy Owens landed at the Nnamdi Azikiwe International Airport, Abuja at 3.29pm amidst pomp and pageantry from aviation stakeholders. 

The aircraft also departed Abuja and touched down at the Sam Mbakwe Cargo Airport, Owerri at 6.00pm where it was welcomed with a ceremonial water salute. 

Speaking at a brief ceremony in Abuja, the Minister of State for Aviation, Sen. Hadi Sirika, commended Air Peace for joining the league of airlines that had operated flights with all female cockpit, cabin crew members, engineers and flight dispatchers. 

Sirika, represented by Capt Talba Alkali, Director, Safety and Technical Policy, Ministry of Transportation, said the feat had shown that the airline was gender friendly. 

According to him, this is the first time a Nigerian airline is carrying out an all female flight with a high capacity aircraft,  adding that  lower capacity aircraft were used by both Arik Air and Aero Contractors in previous occasions. 

" Air Peace has made a tremendous impact on the industry and we as regulators and the ministry will continue to create an enabling environment for the airline and other domestic airlines to thrive. 

"Today's event is yet another testament of the safety of our airspace and we will continue to work with the airlines to make it safer, "he said. 

Also speaking, the Chairman of Air Peace, Mr Allen Onyema,  said over 20 per cent of key positions in the airline were being held by women who had demonstrated that they had the capacity to deliver.

Onyema said the airline had employed about 2,000 workers since it began operations over three years ago, stressing that about 1,500 of the employees were women. 

"Air Peace is an airline run by women. We are very proud of giving women opportunities to excel because we believe that there is nothing that men can do that women cannot do. 

"We want to encourage our female children that they should aspire to be whatever they want to be by emulating what our female flight and cabin crew members have done today," he said. 

The Air Peace boss commended the President Muhammadu Buhari-led administration for the support given to domestic airlines especially the recent removal of the Value Added Tax on transportation and waivers on aircraft spares importation. 

On her part, Ajibola thanked Air Peace for giving her and her colleagues the opportunity to conduct the historic flight, adding that Nigerians should get used to having women on the cockpit. 

"There are times we are boarding and the men will see me in the cockpit and they will behave like: “Is it a female flying us? Are we safe? Are we safe? And we laugh about it, because it is 2018.

"We expect people to be conversant with having females in their cockpits. But I guess we will give them a little more time to understand that what the men can do, we equally can do," she said. 

The United States trained pilot called on young Nigerian girls to embrace their dreams without fear of intimidation by their male counterparts. 

Two passengers, Mr Emmanuel Ikedi and Mr Anthony Okoroafor, said they were impressed with the way the pilot flew the aircraft and lauded Air Peace for the feat.  

Air Peace to operate first all-female flights on July 5

Air Peace female flight and cabin crew members will on Thursday step into an arena that has been dominated by their male counterparts for almost four years running, taking full charge of the carrier’s four-sector flights on the Lagos-Abuja, Abuja-Owerri, Owerri-Abuja and Abuja-Lagos routes.

The development is coming days after Air Peace gave command to Sinmisola Ajibola, who made history as the airline’s first female captain and was decorated with her new rank by the Chairman/Chief Executive Officer, Mr. Allen Onyema on Monday, June 25.

A statement issued by Air Peace Corporate Communications Manager, Mr. Chris Iwarah said the flight was planned in honour of the carrier’s first female captain, Sinmisola Ajibola.

“Captain Sinmisola’s achievement is a testament to Air Peace’s avowed commitment to gender equality and promotion of Nigerian women in aviation as possessing the requisite skills to distinguish themselves anywhere across the globe in their chosen career,” the airline said.

Air Peace explained that although women occupy most of its top positions, “Sinmisola’s elevation is a great milestone in our effort to grow capacity for women in the cockpit.”

Sinmisola, who will be in command of the four-leg flight, will be assisted in the cockpit by Senior First Officer Quincy Owen.

The all-female crew flight scheduled to take off from the General Aviation Terminal (GAT) of the Murtala Muhammed Airport, Lagos at 1310 hours is estimated to arrive to a water salute at the Nnamdi Azikiwe International Airport, Abuja at 1420 hours.

The flight will depart the Nnamdi Azikiwe International Airport at 1450 and arrive at the Sam Mbakwe International Cargo Airport, Owerri to another round of water salute at 1550 hours.

After a brief event at the Owerri Airport, the flight will leave at 1620 hours for Abuja and arrive at the Nnamdi Azikiwe International Airport at 1720 hours.

The flight will finally depart the Abuja airport at 1750 hours and touch down at the Murtala Muhammed Airport at 1900 hours.

Dana clears air on malicious social media messages

The Dana Group has urged the general public to ignore two malicious broadcast messages circulating on the social media asking them not to patronise Dana Air and not to buy a "Dana "branded rice that allegedly arrived the country from Pakistan. 

Mr Kingsley Ezenwa, Communications Manager, Dana Air, gave the advice in a statement issued on Monday in Lagos. 

Ezenwa said :  "We would ordinarily not want to dignify the perpetrators and their paymasters with a response. However, we felt the need to unearth their puerile, senseless and deliberate act of peddling two false broadcast messages about a single brand in one day.

" It is either their pay master is so clueless to have advised them to circulate both messages in one day or the perpetrators decided to be overzealous

"For the records, the Dana brand has been in Nigeria for over 45 years contributing positively to the Nigerian  economy with quality products in the areas of Aviation, Steel, Manufacturing, Automobile, Banking, Real Estate, Health, and Beverage, just to mention a few."

According to him, the Dana Group being a proudly Nigerian brand committed to the growth of the economy and development of the country stopped the importation of rice in 2015.

He noted this was in line with the desires and commitment of both the outgoing and incoming administrations to grow local capacity for quality rice production in Nigeria.

Ezenwa said Dana Air on its part had been battling and navigating these mischief-makers since inception in 2008, when the airline took the industry by storm by offering pocket-friendly fares, on-time departures, world-class in-flight service and above all, safe and reliable air transport.

"The peddlers  of this baseless broadcast message  have also refused to come to terms with Dana Air’s towering status in the industry having flown over 2.7 million passengers in the last nine years of its operation and have survive even the worst operational challenges in the industry.

"We, therefore wish to reassure our teeming guests that their safety and comfort remains top-priority to us at Dana Air and our unwavering adherence to civil aviation regulations and global best practices are the reasons for our latest consecutive international recognitions. 

"We advise the perpetrators to desist from this evil act of working at cross-purposes with a conglomerate that has shown massive commitment and contributed immensely to the growth and development of our country," he said.