Monday, 10 September 2012

Air Nigeria stops operations today,New buyer may take over operation

AS Air Nigeria formally stops flight operations today, there are indications that the airline is being proposed for sale to fresh investors for close to $200m.

But financial analysts believe that the proposed sell off may be above the margin, given that airlines often have few or limited assets.

Meanwhile, a new entrant, Med-View Airlines is set to begin operations in the country.

The Air Nigeria’s board chairman had last week Wednesday, in a statement, announced that the airline would suspend all its flight operation for 12 months.

The airline’s workers were jolted by the announcement by taking to the streets last week Friday, precisely at the headquarters of the Nigeria Civil Aviation Authority (NCAA), to protest their unpaid five months salaries and pensions.

But an airline operator said yesterday that it might be difficult for the airline to resume operations in 12 months as the company was expected to lose all important Air Operator Certificate (AOC) after 60 days of no flight operations.

Once an airline refuses to operate for 60 days, the carrier automatically loses its license as it is expected to start all over the process of renewal which, most times, are very cumbersome.

Acquisition of AOC could take as long as two years because of the NCAA stringent measures in meeting up with the requirements of a certificate.

Workers said last week that their ‘disposal’ was to create impression to the new investors that the airline did not have any liabilities.

But the new investors may not inherit the remaining aircraft in the airline’s fleet as it was learnt that plans are underway to ferry the two Embraer 190’s and two B737’s.

Apart from Med-View, two other airlines are about to get their Air Operator Certificate (AOC) from the Nigeria Civil Aviation Authority (NCAA).

This is expected to give choices to travellers who have been at the mercy of few airlines operating in the country, following the grounding and extinction of some airlines.

Med-View is famous for annual flight operations to Saudi Arabia.

One of the aircraft to be used for the flight operations, Boeing 737-400, was set to arrive the country from Bucharest, Romania tomorrow, while the second aircraft would arrive during the week from the same country.

The source said that the inspection unit of the NCAA had gone to Romania to inspect the aircraft, which was approved for operations in the country by the regulatory body.

We learnt that the airline hopes to fly at least four routes in the country namely; Lagos-Abuja, Abuja-Port Harcourt, Maiduguri-Yola and Lagos-Port Harcourt.

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