Rani
11th May 2004, 05:15
From the NigerianGuardianNews:
Nigeria Eagle can't take off in June, says technical partner
From Andrew Iro Okungbowa,
Durban, South Africa
NIGERIA'S hope for an immediate take-off of the newly-created national carrier, the Nigeria Eagle, was dashed yesterday by the new airline's technical partner, the South African Airways. Instead of the second quarter of this year earlier announced by the Federal Government for the start of operations for the new airline, the technical partner has said it would only be feasible in the last quarter, possibly in October. This is because a lot of the issues that would make for its smooth operation are yet to be concluded.
The President and Chief Executive Officer of the South African Airways (SAA), Mr. Andre Viljoen, told some Nigerian journalists yesterday in Durban, South Africa, that there was so much to be done by all parties to the deal.
Viljoen, who reiterated the commitment of his organisation to mid-wife the new airline, however, said that weighty issues that must be addressed before the airline's take-off were pending. "We are committed to see Nigeria Eagle get to birth and to start operating."
"As you know, there is a process that is being followed and the ideal is to create a fully-fledged airline in Nigeria," he said.
According to the SAA chief, in concept and principle, a Nigeria Eagle now exists but the practical details that would make it fly, are yet to be agreed on.
The Minister of Aviation, Malam Isa Yuguda, had declared the end of the second quarter of the year as the operational date for the new airline. But this date, the SAA boss said, might not be realistic. He picked the last quarter of the year as the likely date for the Nigeria Eagle to fly.
This, according to him, is also subject to how well topical issues surrounding the airline are handled.
"We also have a high hope that by the last quarter of the year, it might be done. It is a complex deal because you are now having a Nigerian government with a 51 per cent and SAA with 49 per cent to a deal... You haven't even had the Nigerian investors yet. Now, there is a lot of practical issues to deal with," he added.
Some of these details, Viljoen said, are: "Where the money is coming from
How much money will you need
What are the timing, the phases
When does it start
What happens to the old Nigeria Airways
And, the old staff, do they shift to the new Nigeria Eagle
What are the practical problems
"
He noted that part of the problem in getting the new airline off the ground might also be attributed to the fact that the 51 per cent share of the government is yet to be allotted to shareholders, who for now do not exist.
The situation, he says, makes it a very complex transaction to handle. Viljoen pointed to the matter of liquidators and creditors of the Nigeria Airways and the number of routes and flights. Specifically, he mentioned the number of flights (Lagos-London) being done by the British Airways and Virgin Atlantic Airways.
"Until all that is resolved and agreement signed and sealed, Nigeria Eagle cannot fly. But in principle, we have a deal." Despite the problems, Viljoen informed his audience that there was a willingness on the part of both Nigeria and South Africa to make the partnership work.
The airline chief said that both Presidents Olusegun Obasanjo and Thabo Mbeki (South Africa) were committed to the initiative because of the New Partnership for African Development (NEPAD) and the African Renaissance principle, which he remarked, "is very close to Mbeki's heart."
He said: "The presidents of South Africa and Nigeria support the deal. They want the deal. They know it is important for both countries. Nigeria is the powerhouse of the west and South Africa is the powerhouse of the south, it makes every sense to connect the two powerhouses with an airline. And for us to work together to create the bridge."
On what Nigeria stands to gain from having a national carrier, the SAA chief said the airline is needed for tourism to grow in the country and for the economy to flourish. "You need a national carrier. You need a domestic airline that is strong. You need national carrier that carries you to the world as a Nigerian as we want to be a partner that will help to make it happen."
For South Africa, he revealed that the partnership was too important to the government because "we could see a lot of traffic in the south. There is a lot of synergy and widening the business interest of both countries with a partner as South Africa Airways."
Nigeria Airways was last year slated for liquidation and a new privately-owned airline to be known as the Nigeria Eagle floated.
A bid for a technical partner was advertised with the South African Airways being the sole bidder and was chosen to operate the new airline. The choice of the SAA as the technical partner was, however, roundly criticised by a section of the aviation industry and some of the Nigerian Airways creditors.
The entire bidding exercise was described as designed to favour the South African carrier.
Already, there are law suits filed by Airways workers, groups and Air Atlanta, one of the creditors of the moribund Nigeria Airways, hanging as albatross on the project.
Also, some critics alleged that SAA has a weak financial base, claiming that the South African government is presently struggling to bail it out of its financial woes.
Yuguda has, however, shifted the take-off date for the new airline several times even as aviation experts doubt if the unborn carrier may successfully walk through the mine-field before it.`
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Nigeria Eagle can't take off in June, says technical partner
From Andrew Iro Okungbowa,
Durban, South Africa
NIGERIA'S hope for an immediate take-off of the newly-created national carrier, the Nigeria Eagle, was dashed yesterday by the new airline's technical partner, the South African Airways. Instead of the second quarter of this year earlier announced by the Federal Government for the start of operations for the new airline, the technical partner has said it would only be feasible in the last quarter, possibly in October. This is because a lot of the issues that would make for its smooth operation are yet to be concluded.
The President and Chief Executive Officer of the South African Airways (SAA), Mr. Andre Viljoen, told some Nigerian journalists yesterday in Durban, South Africa, that there was so much to be done by all parties to the deal.
Viljoen, who reiterated the commitment of his organisation to mid-wife the new airline, however, said that weighty issues that must be addressed before the airline's take-off were pending. "We are committed to see Nigeria Eagle get to birth and to start operating."
"As you know, there is a process that is being followed and the ideal is to create a fully-fledged airline in Nigeria," he said.
According to the SAA chief, in concept and principle, a Nigeria Eagle now exists but the practical details that would make it fly, are yet to be agreed on.
The Minister of Aviation, Malam Isa Yuguda, had declared the end of the second quarter of the year as the operational date for the new airline. But this date, the SAA boss said, might not be realistic. He picked the last quarter of the year as the likely date for the Nigeria Eagle to fly.
This, according to him, is also subject to how well topical issues surrounding the airline are handled.
"We also have a high hope that by the last quarter of the year, it might be done. It is a complex deal because you are now having a Nigerian government with a 51 per cent and SAA with 49 per cent to a deal... You haven't even had the Nigerian investors yet. Now, there is a lot of practical issues to deal with," he added.
Some of these details, Viljoen said, are: "Where the money is coming from
How much money will you need
What are the timing, the phases
When does it start
What happens to the old Nigeria Airways
And, the old staff, do they shift to the new Nigeria Eagle
What are the practical problems
"
He noted that part of the problem in getting the new airline off the ground might also be attributed to the fact that the 51 per cent share of the government is yet to be allotted to shareholders, who for now do not exist.
The situation, he says, makes it a very complex transaction to handle. Viljoen pointed to the matter of liquidators and creditors of the Nigeria Airways and the number of routes and flights. Specifically, he mentioned the number of flights (Lagos-London) being done by the British Airways and Virgin Atlantic Airways.
"Until all that is resolved and agreement signed and sealed, Nigeria Eagle cannot fly. But in principle, we have a deal." Despite the problems, Viljoen informed his audience that there was a willingness on the part of both Nigeria and South Africa to make the partnership work.
The airline chief said that both Presidents Olusegun Obasanjo and Thabo Mbeki (South Africa) were committed to the initiative because of the New Partnership for African Development (NEPAD) and the African Renaissance principle, which he remarked, "is very close to Mbeki's heart."
He said: "The presidents of South Africa and Nigeria support the deal. They want the deal. They know it is important for both countries. Nigeria is the powerhouse of the west and South Africa is the powerhouse of the south, it makes every sense to connect the two powerhouses with an airline. And for us to work together to create the bridge."
On what Nigeria stands to gain from having a national carrier, the SAA chief said the airline is needed for tourism to grow in the country and for the economy to flourish. "You need a national carrier. You need a domestic airline that is strong. You need national carrier that carries you to the world as a Nigerian as we want to be a partner that will help to make it happen."
For South Africa, he revealed that the partnership was too important to the government because "we could see a lot of traffic in the south. There is a lot of synergy and widening the business interest of both countries with a partner as South Africa Airways."
Nigeria Airways was last year slated for liquidation and a new privately-owned airline to be known as the Nigeria Eagle floated.
A bid for a technical partner was advertised with the South African Airways being the sole bidder and was chosen to operate the new airline. The choice of the SAA as the technical partner was, however, roundly criticised by a section of the aviation industry and some of the Nigerian Airways creditors.
The entire bidding exercise was described as designed to favour the South African carrier.
Already, there are law suits filed by Airways workers, groups and Air Atlanta, one of the creditors of the moribund Nigeria Airways, hanging as albatross on the project.
Also, some critics alleged that SAA has a weak financial base, claiming that the South African government is presently struggling to bail it out of its financial woes.
Yuguda has, however, shifted the take-off date for the new airline several times even as aviation experts doubt if the unborn carrier may successfully walk through the mine-field before it.`
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