FG tinkers with multiple flag carrier option

The Federal Government is currently exploring the option of having multiple flag carrier airlines instead of a single national carrier. This option, if eventually implemented, could help the country reduce the over N200 bilion lost to foreign airlines that operate to Nigeria due to lack of strong national airline for the country. Former Minister of Aviation, Osita Chidoka, at his valedictory speech last week, noted that in developing this concept, specific measures needed to be identified for Nigerian airlines to achieve the flag carrier status.

To him, such measures will be based on several parameters, which could include corporate governance, fleet size, information system, safety records and operational coverage. He said: “The flag carrier option could help to eliminate the possibility of rivalry between government, which would have a significant role in setting up national carrier and other do- mestic operators.” In fact, government may have begun the processing when it designated Medview Airlines on 11 routes, includ- ing the lucrative Lagos-London route, penultimate week.

In a bid to address the lop- sidedness in the Bilateral Air Services Agreement (BASA) be- tween Nigeria and other coun- tries, the Federal Government had designated Nigeria’s flag carrier airline, Medview, on the lucrative Lagos-London route. This development would lead to Nigeria fully reciprocating the pact, which stipulates that countries can designate same number of carriers to each other’s territory. While Britain designated Virgin Atlantic Airways and British Airways to Nigeria with 21 frequencies, only Arik Air operates to London with a daily flight to London Heathrow Airport. Aside the London route, other designated routes are those in Eu- rope and Africa. In total, Medview was given 10 new foreign routes.

The approval was contained in a letter addressed to the airline’s management dated April 23 by the Ministry of Aviation. The letter, which was signed on behalf of the Minister of Aviation, Osita Chidoka, by the Deputy Director, Air Transport Management in the ministry, M.S. Noibi, listed the new desig- nated routes as: London in United Kingdom, Lisbon in Portugal, Douala in Cameroun and Kin- shasa in Democratic Republic of Congo. Others are: Abidjan in Cote D’Ivoire, Bamako in Mali, Monrovia in Liberia, Conakry in Guinea and Freetown in Sierra Leone. The letter, however, gave the airline deadline within which to commence operations to the affected routes or lose the right.

“You are advised to comply with all the rules and regulations of the aeronautical authorities of Nigeria and the respective coun- tries.” Chidoka further disclosed that the Ministry of Aviation had es- tablished a committee to assess the national carrier initiative, stressing that the committee also suggested criteria for airlines to meet in order to be granted flag carrier status. These include evi- dence of IOSA accreditation, es- tablishment of a clear and trans- parent governance structure. Others are agreeing to restruc- ture the ownership through the sale of shares on a 60/40 basis, the restructuring of the man- agement to accommodate pro- fessionals, evidence of technical capacity, meeting optimum fleet size and equivalent type, route asset and development plan, employee size and financial health disclosure.