Monday, September 30, 2013

FG’s Plan To Unveil A New National Carrier On October 1 Under Attack

The Federal Government plan to unveil a new national carrier on October 1 – in commemoration of the country’s 53th independence anniversary – is under attack from analysts.

They say the development is a step back to the dark ages, in view of the current global sentiments towards divestments.
Continue after the break.

The new airline would come out of the merger of Aero Contractors and Air Nigeria airlines, which are indebted to the Asset Management Corporation of Nigeria (AMCON), according to BusinessDay findings.

This is coming on the heels of refusal of some international airlines to partner with the local airlines due to the enduring crisis in the sector.

Bismarck Rewane, chief executive, Financial Derivatives company in the recent release observed that the last national carrier – Nigeria Airways – was plagued by mismanagement and therefore ceased operations in 2003.

“Back to the dark ages. Governments are divesting from airline business globally, but Nigeria is unveiling a national carrier officially to the public on October 1, which will comprise airlines indebted to the government via AMCON, Aero Contractors and Air Nigeria.”

Reports say the new airline will be funded through a private sector public offering of about N200 billion with government retaining 25 percent stake, and remaining percent controlled by yet to be disclosed private investors.

Source: BusinessDay

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