A 19-member committee of the All Progressives Congress has advised the Federal Government led by President Muhammadu Buhari to merge the country’s debt-laden airlines and create a national carrier in partnership with a global airline to boost revenue and create jobs.
According to a report by Reuters, The strategy report submitted to the President by the Ahmed Joda-led committee may influence policy decisions by Buhari.
Three years ago, the Asset Management Corporation of Nigeria took on more than N132bn of debts from 12 Nigerian airlines, including the biggest carrier, Arik, and Aero.
The APC strategy document states that the Aviation ministry should create a national airline “in partnership with a global airline,” which would involve “merging all airlines currently with AMCON” to serve as a West and Central African hub.
The report, submitted to Buhari about two weeks ago, stated that the proposals would lead to “increased revenue, reduce capital flight, expand the local aviation industry and create more employment opportunities due to the scale created.”
British billionaire, Richard Branson, set up a domestic and international carrier, Virgin Nigeria, in 2000, but pulled out in 2010 in frustration at what he said was interference by politicians and regulators.