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Ethiopia Airlines to invest in Nigeria Air, likely to own 49 percent stake

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Ethiopian Airlines is to invest in Nigeria’s national carrier, Nigeria Air, after the Addis Ababa government-owned airline was chosen as the core investor and the technical partner.

The selection of Ethiopian Airlines was made ahead of the new operational launch date of June 2023. Recall that the flight operation was initially scheduled for April 2022.

The Nigerian government is taking steps to meet the commencement date after receiving the Air Transport Licence (ATL) from the Nigeria Civil Aviation Authority (NCAA) in June. The license is effective between June 3, 2022 till June 2, 2027.

Ripples Nigeria understands that Ethiopia Airlines’ selection as core investor hints on the company likely taking over the 49 percent stake in Nigeria Air, considering the Bureau of Public Enterprises explains that a core investor owns at least 51% of ownership in a government company.

Although the Federal Government had stated that 51 percent equity shares of Nigeria Air will be retained, as it is only willing to extend 49 percent to foreign investors.

Read also:Ethiopian Airlines acquires Africa’s first A350-1000 aircraft

According to a source quoted by This Day on Thursday, some pilots were sent to Addis Ababa to undergo training with Ethiopian Airlines. Also, the East Africa country reportedly received representatives of the Ministry of Aviation to complete the agreements.

“Yes, we have selected Ethiopian Airlines. We have agreed to work with the airline, and we are hoping to make the announcement soon.” The source said, adding that, “I heard the minister sent some pilots there some time ago for training.

“But it was ab-initio training. They are also preparing for the training of pilots on Boeing 737 NG aircraft. Ethiopian will provide the technical management.” the person with knowledge of the process added.

Revealing the reason for choosing Ethiopian Airlines, the source said the company has the necessary equipment needed for the operation of Nigeria Air, “Ethiopian Airlines has the equipment needed for the startup of the new national carrier, Nigeria Air.

“It has many Bombardier Dash 8 aircraft, which would be the equipment that would be deployed with the additional deployment of a few Boeing B737 NG aircraft. The airline is most prepared to support the Nigerian government to actualise its national carrier ambition.”

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