Home West Africa Federal court orders Nigerian government to suspend its partnership with Ethiopian Airlines

Federal court orders Nigerian government to suspend its partnership with Ethiopian Airlines

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  • The partnership with Ethiopian Airlines was opposed by the local Airlines alleging that Ethiopian Airlines was brought on board without giving due consideration to the local Airlines.

The Federal Government of Nigeria announced the launch of Nigeria Air, a new national carrier in 2018. After a four-year delay, it was planning to launch operations this year with flights between Lagos and Abuja. In September this year, Ethiopian Airlines was roped in to be its technical partner with a 49% stake in the airline.

The partnership with Ethiopian Airlines was opposed by the local Airlines alleging that Ethiopian Airlines was brought on board without giving due consideration to the local Airlines. Allen Onyema, CEO of Nigeria’s largest local airline, Air Peace, as well as the industry’s spokesman, argued that the Nigerian Air should be wholly owned by Nigerians. The argument was refuted by the aviation minister Hadi Sirika saying that the process has been transparent all through and provided information to every interested party.

Also read;

https://trendsnafrica.com/ethiopian-airlines-to-be-nigeria-airs-technical-partner/

https://trendsnafrica.com/foreign-airlines-in-nigeria-in-a-tight-spot-struggling-to-access-their-trapped-funds/

  Subsequently, eight local airlines including Air Peace filed a suit in the federal court. The Federal court has now ordered the government to suspend its partnership with Ethiopian Airlines. Though the temporary injunction can be overturned by another court, what it exposes is Nigeria’s challenges to relaunch a national airline. The national carrier that existed from pre-independence days, Nigeria Airways, wound up in 2003 mired in mismanagement and debt. After several years of delay, it was hoped that the Ethiopian Airlines deal will help the national Airlines to take off. Unlike Nigerian Airways which was wholly owned by the government, the government had only a 5% stake in the proposed Nigerian Air. The remaining 46% is owned by private Nigerian investors

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