President of Aviation Round Table (ART), Gabriel Olowo, has made case for the establishment of a private sector-driven airline and the need for domestic airlines to merge to form strong carriers.
In his submission to the President Bola Ahmed Tinubu-led government, tagged, ‘National Carrier Unending Debate: Advice to the New Government,’ Olowo said that given that Nigeria desires a national carrier, the Tinubu government should completely stay out of doing direct business in oil and gas, communications, aviation and other sectors.
While calling on the government to drive the solution through the private sector and stakeholders, he maintained that the over 20 or more licensed airline operators in Nigeria should form two or three formidable alliances, or merge to form the flag carriers.
Each alliance, Olowo said, must parade an aircraft fleet size of 50 either through direct leases, acquisitions, or alliances, among others.
“The carriers will in total be parading 150 aircraft to equate one Ethiopian Airlines (the largest airline in Africa) which today operates 144 modern aircraft to more than 150 domestic and international destinations across five continents.
“Large operational fleet and not share capital is the necessary and sufficient condition for good on-time performance (OTP) of airlines. Thereafter, ensure all BASA are reviewed for competitive reciprocity with full government backing to the three flag carriers who will reciprocate to all the destinations being currently operated by foreign airlines only,” Olowo said.
He cited how the banking regulators made mergers happen successfully in the banking sector, and today the country can boast of a strong and competitive banking sector, even as he urged the aviation regulatory body, the Nigeria Civil Aviation Authority (NCAA), to do same in the circumstance.
“Needless emphasising the advantage of three reliable Nigerian flag carriers in terms of economic tariffs, efficient passenger experience, curbing brain drain, reducing foreign airline home remittances, and reducing unemployment,” he added.
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