Ethiopian Airlines CEO blames politicization, local airlines’ resistance for Nigeria Air failure
Ethiopian Airlines CEO Mesfin Tasew Bekele has attributed the failure of the Nigeria Air project to politicization and resistance from local Nigerian airlines.
In a recent interview on Bloomberg Television, Bekele expressed his frustration over the lack of cooperation, noting that Ethiopian Airlines has no intention to partner with any Nigerian airlines due to the project being heavily politicized.
He highlighted that despite efforts to collaborate with the Nigerian government and institutional investors to establish a reliable and profitable airline, the plan was met with resistance from local airlines. This opposition ultimately contributed to the failure of the Nigeria Air project.
“We don’t have any intention to partner with any of the Nigerian airlines to date because it has been politicized.
“We tried to help the country by partnering with the government and other institutional investors in Nigeria, to use our expertise, our experience and establish a reliable airline, that would be profitable in the short term.
“But as you may have read from the media, it was not welcomed by the Nigerian airlines,” Bekele stated.
Bekele’s remarks follow his earlier disclosure in June that the Nigerian government had decided to abandon the proposed Nigeria Air project.
While the Nigeria Air project failed, Ethiopian Airlines is pursuing new partnerships with African governments. Bekele revealed that in the next 12 months, they plan to partner with at least two nations, either by managing existing airlines or launching new ones.
What you should know
The Nigeria Air project, initiated by former President Muhammadu Buhari’s administration, aimed to revive the defunct Nigerian Airways.
Announced on July 18, 2018, the project was suspended just two months later due to concerns about its relevance and sustainability, with initial costs estimated at $8.8 million and take-off costs at $300 million.
In 2022, Ethiopian Airlines secured the bid to manage Nigeria Air, agreeing to hold a 49% stake, with the Federal Government holding 5%, SAHCO 15%, and other investors 31%.
In May 2023, Aviation Minister Hadi Sirika officially launched Nigeria Air just before the previous administration ended.
However, by June 2023, the House of Representatives criticized the launch process as fraudulent, leading the House Committee on Aviation to pass a resolution calling for the suspension of Nigeria Air’s operations.
Festus Keyamo, the current Minister of Aviation and Aerospace Development, later criticized the deal with Ethiopian Airlines, arguing it was not in the country’s best interest.
In May 2024, Keyamo announced the indefinite suspension of the Nigeria Air project during a briefing marking President Bola Tinubu’s first year in office.
Currently, former Aviation Minister Hadi Sirika is under prosecution by the Economic and Financial Crimes Commission (EFCC) for alleged money laundering, contract fraud within the ministry, and issues related to Nigeria Air.