Efforts to revitalise Nigeria's national carrier, Nigeria Airways, seem to have hit the rocks, due to its heavy debt burden, government apathy in providing financial help, and a lack of serviceable aircraft.
The government is saddled with fashioning a credible political transition and creating a conducive economic environment. There are fears that it cannot save the airline, which could be declared bankrupt.
One section of the aviation community wants the government to designate independent airlines on major international routes and let them compete equally with Nigeria Airways.
The airline's debt is estimated at $90 million, but a committee set up by the Nigerian government in June 1997 to verify the debts has yet to submit its report. Last year, a London judge ruled that the airline's assets should be auctioned to recover $31 million owed to Equator Leasing, although an appeal is pending.
Nigeria Airways' revenue dwindled after the May 1997 ban by the UK Civil Aviation Authority on Nigerian registered aircraft. A Dubai service was launched instead, but the route's performance is merely 'satisfactory', say analysts.
Recently Nigeria Airways, which has a monopoly on traffic rights to 65 international cities from Nigeria, changed tactics and entered into agreement with an independent carrier, Bellview Airlines, to operate routes to Mumbai and Amsterdam jointly. Yet the flag carrier still controls less than 5 per cent of international traffic out of Nigeria.
Last year's talks with Virgin about a joint venture fell through after the UK group asked for a cash deposit of about $70 million and a free hand to manage the airline for a minimum of 10 years.
Source: Airline Business
