Background
Ethiopian Airlines (ET) is set to take a 49% stake in Nigeria Air (NWB), a startup airline in Nigeria. Private investors will take 46% and the Nigerian government will hold 5%. However, concerns within the Nigerian government have stalled the process of this joint venture. While Ethiopian Airlines believes the deal is "almost a done deal," the change of government in Nigeria this year has led to a reassessment of the original agreements.
According to Aviation Daily, the new aviation minister, Festus Keyamo, has several concerns regarding the joint venture. These include a proposed five-year tax waiver for Ethiopian Airlines, potential creation of a monopoly, hindering fair competition in the local market, and allowing Ethiopian Airlines to control the appointments of Nigeria Air's personnel. Keyamo has informed the Nigerian president of these concerns, and it is up to the president to ultimately give the joint venture the go-ahead.
Current Status
Ethiopian Airlines has already allocated two B787s and six B737 MAX types to Nigeria Air and has even ferried a B737-800 to Nigeria for proving flights in that country's airspace to secure a Nigerian air operator's certificate. However, due to the delays, Ethiopian Airlines is still waiting for the Nigerian government to give them the go-ahead to start the airline.
Future Outlook
Despite these delays, Ethiopian Airlines remains confident that the joint venture will go ahead soon. The Nigerian government has said that it is committed to protecting the interests of local airlines and ensuring a level playing field across the Nigerian aviation industry.
Expansion Plans with France
Separately, Ethiopian Airlines may increase its flights between Ethiopia and France after signing a new air services agreement with the French government. Currently, it operates daily Addis Ababa-Paris CDG and thrice-weekly Addis-Marseilles roundtrips. The new agreement will allow Ethiopian Airlines to expand its flights to six non-Paris metro airports and commence thrice-weekly dedicated cargo roundtrips on the country pair.
Summary
While Ethiopian Airlines' joint venture with Nigeria Air faces delays due to concerns within the Nigerian government, both parties remain hopeful that the deal will go ahead soon. Additionally, Ethiopian Airlines' expansion plans between Ethiopia and France have been given a boost with a new air services agreement.
(This article is sourced from ch-aviation.com and curated by Thetransporteronline24)
