New national carrier likely as FG/Ethiopian Airlines pact crumbles - Newstrends
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New national carrier likely as FG/Ethiopian Airlines pact crumbles

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New national carrier likely as FG/Ethiopian Airlines pact crumbles

The Federal Government may soon unveil a new national carrier following the suspension of the Nigeria Air project.

Permanent Secretary in the Ministry of Aviation and Aerospace Development, Dr. Ibrahim Abubakar Kana, gave the hint while clarifying an earlier comment attributed to him that he had the mandate of President Bola Ahmed Tinubu to deliver a new national carrier.

Daily Trust reported Kana as denying ever saying the suspended Nigeria Air project with the Ethiopian Airlines providing the technical support would be revived.

The Minister of Aviation and Aerospace Development, Festus Keyamo, on assumption of office in 2023 suspended the project.

He also declared that the Ethiopian Airlines deal on Nigeria Air was for Nigeria.

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Keyamo had said, “This is the Ethiopian Air agreement here. And you’ll be shocked if you look at this. What it simply says is that a foreign government should come and take over our national carrier.

“That is the long and short of the story, because Ethiopian Air was a single major shareholder in that deal.

“Ethiopian Air is owned by another government in Africa. It’s the same thing they have done to Togo. Togo is a small country. They have done it with Asky owned by Ethiopian Air. We cannot be Togo. I apologise, whoever I’m talking to but we cannot be Togo.

“We are big; we are big; we are ambitious. We cannot give up our entire ecosystem to another entity. Because what would have happened in that case is that the Ethiopian government would now be a complete beneficiary of all our BASA (Bilateral Air Service Agreement) routes.”

Stakeholders, industry players and analysts have expressed concerns over the failure of all the attempts at bringing back the national carrier since the demise of Nigeria Airways in 2004 despite millions of dollars and billions of naira sunk into it.

Former Minister Hadi Sirika in response to a report that N85bn was expended on the Nigeria Air project stated that only N3bn was spent on the project.

The former minister said: “Between the years 2016-2023, all the money budgeted for Nigeria Air, was about N5 billion but not all of it was released. Perhaps about N3 billion was released.

“Part of the N3 billion has so far been spent on the acquisition of offices, payments of consultancy fees, workers’ salaries and processing of Air Operators ‘Certificate (AOC).”

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In a statement yesterday, Kana confirmed that he had been inundated with inquiries about his reference to the revival of the National Carrier Project and needed to clarify the issue.

He said, “For the avoidance of doubt, I never said that there is a mandate to revive the botched Nigeria Air deal with Ethiopian airline. I received no such instruction.

“I was only referring to the general vision of the administration to still consider a National Carrier Project if it is favourable to the country and under the guidance and directives of Mr. President and the Honourable Minister of Aviation. I hope this clarifies all the ambiguities surrounding my earlier statement on this issue.”

From 2003 till date, virtually all the ministers of aviation that have served made attempts to bring back the national carrier with billions of naira spent on the various projects without giving an account of the money.

Daily Trust reported an aviation analyst, Group Capt. John Ojikutu, as saying instead of floating one national carrier, government should set up two flag carriers instead; one regional and continental and the other intercontinental.

He said, “This is what our contemporaries in the early times were doing. I will recommend Arik-Aero for the Regional-Continental and Air Peace-Ibom for the Intercontinental. Both would need foreign technical partners and investors but not from any of our competitors on the BASA Routes.

“First is to assess the local and foreign debts and assets of the airlines to the foreign investors and the domestic investors.”

He stated that both foreign and local investors should not have more than 30 per cent making 30 per cent in total while FG and the states or the six geographical areas should have 12% and the public through the Nigerian Stock Market 28% and the 40% balance should be for the airlines.

“Anything different from that cannot work and may not last,” he added.

New national carrier likely as FG/Ethiopian Airlines pact crumbles

Aviation

FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive

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FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive

FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive

The Federal Airports Authority of Nigeria (FAAN) has introduced a temporary hybrid toll payment system at airports nationwide following heavy traffic congestion caused by the rollout of its cashless toll payment policy. The move comes after President Bola Tinubu directed the authority to ease implementation challenges to prevent travel disruptions.

FAAN Managing Director, Mrs. Olubunmi Kuku, told journalists in Lagos on Thursday that the decision followed severe gridlock at major airport toll gates, particularly Murtala Muhammed International Airport (MMIA), Lagos, as motorists struggled to adapt to fully digital payment methods. “He [the President] saw the traffic congestion and directed us to temporarily revert to a hybrid approach,” Kuku said. “This ensures smoother access while we refine the cashless system — it is a win for the industry.”

The hybrid model allows commuters and travellers to pay tolls using a combination of cash, prepaid FAAN cards, e-tags, debit cards, and other electronic options. Kuku emphasized that the arrangement will let FAAN continue its digital payment initiative while still accommodating users who have yet to register or activate electronic payment channels.

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She highlighted that the authority had registered over 100,000 users on its cashless platform between October 2025 and March 3, 2026, with around 60,000 sign-ups occurring in the final three days before the March 1 rollout deadline. The technology reportedly achieved a 99% success rate during initial operations, demonstrating strong potential for adoption once operational challenges are addressed.

Kuku explained that the initial rollout lacked a comprehensive pilot phase due to the pressure to meet the government’s deadline. The additional time granted by the Presidency now serves as an extended pilot period, enabling FAAN to raise public awareness, onboard private technology partners, and enhance monitoring mechanisms to prevent revenue leakages while cash payments are still allowed.

The MD noted that no new deadline has been set for the complete elimination of cash payments. The focus now is on refining the system, ensuring user convenience, and achieving a smooth transition to a fully digital tolling platform in line with global best practices in airport infrastructure management.

FAAN said the hybrid arrangement aims to prevent delays that could cause passengers to miss flights, while also maintaining transparency in revenue collection and improving overall airport operational efficiency.

FAAN Introduces Hybrid Toll Payment System Following Tinubu’s Directive

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FCCPC Finds Evidence of Airfare Manipulation by Domestic Airlines

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Federal Competition and Consumer Protection Commission (FCCPC)

FCCPC Finds Evidence of Airfare Manipulation by Domestic Airlines

The Federal Competition and Consumer Protection Commission (FCCPC) says it has uncovered credible evidence of airfare manipulation by domestic airlines in Nigeria, revealing that some carriers may have artificially inflated ticket prices during the December 2025 festive travel season beyond what market forces would justify. In an interim report released on Thursday, the FCCPC said its extensive forensic review of airfare data collected directly from airlines across key domestic routes shows striking irregularities in pricing patterns that appear inconsistent with normal seasonal demand, fuel costs, foreign exchange movements, or other operational variables.

The review by the Commission’s Surveillance and Investigations Department, led by Director of Corporate Affairs Ondaje Ijagwu, compared peak-season fares in December 2025 against ticket prices in the post-holiday period of January 2026. In many cases — notably on high-traffic corridors such as Abuja–Port Harcourt, Lagos–Calabar, and Lagos–Enugu — the difference in fares reached as high as ₦405,000 for a single ticket, even though essential cost drivers remained relatively stable. “These fare differences appear to reflect airlines’ arbitrary pricing decisions, yield management strategies, and capacity allocation practices rather than any variation in regulated fees or significant changes in operating conditions,” Ijagwu said, suggesting that multiple domestic carriers might have engaged in tacit coordination rather than true competition.

The report also showed that during the peak period, reduced seat availability paired with clustered price ranges across multiple operators raised further competition concerns, lending weight to potential violations of Nigeria’s Federal Competition and Consumer Protection Act (FCCPA) 2018. The interim findings flagged possible breaches of provisions governing restraint of competition, abuse of dominant positions, price-fixing, conspiracy, unfair contract terms, and consumers’ right to fair dealings — signalling that airlines may have breached multiple competition and consumer protection rules.

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The Airline Operators of Nigeria (AON) swiftly pushed back against the FCCPC’s report. AON spokesman Prof. Obiora Okonkwo said the Commission lacks the specialised expertise to analyse aviation pricing, warning that the probe could harm Nigeria’s fragile airline sector. “They don’t understand the economics of airlines or how ticket prices are set based on yield, load factors, aircraft utilisation and revenue management systems,” Okonkwo said. “This action is very detrimental to the survival of domestic operators.”

Independent aviation analysts in Nigeria say pricing behaviour in the sector has long lacked transparency. Dr. Uche Okoro, a transport economist, told news editors that while peak-season travel normally pushes fares up, the consistency of spikes across multiple airlines on the same dates and routes — even where there was no significant change in fuel or exchange rates — suggests coordinated pricing behaviour. “Market competition should push airlines to differentiate prices based on service levels and actual costs,” Okoro said. “When several carriers raise prices almost in unison, especially on predictable peak travel dates, it warrants scrutiny.”

The Nigerian Civil Aviation Authority (NCAA) acknowledged the FCCPC’s interim report and pledged to support the broader probe, noting that the aviation sector must balance airline financial sustainability with fair market practices. An NCAA spokesperson said: “We are engaging with the FCCPC and industry stakeholders to promote a transparent pricing environment. While airlines need to remain viable, consumers must also be protected from exploitative fare regimes.” The NCAA emphasised that factors such as fleet size limits, airport slot restrictions, seasonal demand patterns, and infrastructure capacity do affect pricing, but agreed that unusually steep price spikes merit investigation.

According to the FCCPC, the route-by-route analysis showed that on Abuja–Port Harcourt, average peak-period fares were far higher than post-peak levels, with many tickets in December priced well above the typical seasonal range. On Lagos–Calabar and Lagos–Enugu, similar patterns of clustered fare bands across airlines suggested pricing behaviour broadly aligned among competitors rather than differentiated by market forces. Across sampled routes, median fares during the festive period were significantly elevated compared with post-peak benchmarks, despite stable fuel price trends, unchanged airport taxes, and no major exchange rate shocks. The FCCPC noted that while predictable seasonal demand surges can justify higher fares, the magnitude and pattern of the increases observed in December 2025 are not fully explained by ordinary market conditions.

FCCPC Executive Vice Chairman and CEO Tunji Bello stressed that the interim report is not an enforcement action, but a step toward deeper investigation. “The Commission’s role is to ensure that market outcomes reflect competition and consumer protection principles,” he said, adding that full findings and possible enforcement measures will follow after the ongoing review. Bello also signalled that foreign airlines operating international routes involving Nigeria will soon be probed, following complaints that Nigerian passengers are often charged significantly higher fares on similar international distances. “No operator — domestic or foreign — will be shielded if evidence confirms fare-fixing or consumer exploitation,” Bello said. The FCCPC has asked both airlines and consumers to assist in the investigation by providing additional data, while warning airlines that violations of the FCCPA could result in regulatory sanctions, fines, or mandatory corrective orders once the full review is concluded.

FCCPC Finds Evidence of Airfare Manipulation by Domestic Airlines

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248 Passengers Safe as Aircraft Makes Emergency Landing in Lagos

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Murtala Muhammed International Airport
Murtala Muhammed International Airport

248 Passengers Safe as Aircraft Makes Emergency Landing in Lagos

An aircraft carrying 248 passengers and 12 crew members made a successful emergency landing in Lagos after developing a mid-air technical fault, aviation and emergency authorities have confirmed.

The aircraft, operated by Qatar Airways, landed safely at the Murtala Muhammed International Airport (MMIA), Lagos, after the flight crew alerted air traffic control to the fault while en route. Emergency response teams were immediately placed on standby as the plane approached the runway.

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Officials said the aircraft executed a controlled landing, with all passengers and crew evacuated safely and no injuries or fatalities recorded. Emergency agencies, including the Lagos State Emergency Management Agency (LASEMA), FAAN, fire services and medical responders, coordinated the operation.

Eyewitnesses at the airport described tense moments as rescue teams lined the runway, but calm was restored shortly after landing when passengers disembarked without incident.

The incident has again drawn attention to aviation safety in Nigeria, though authorities praised the swift response and professionalism of the flight crew and emergency agencies, noting that early alerts and coordination helped avert a major disaster.

248 Passengers Safe as Aircraft Makes Emergency Landing in Lagos

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