BigIyanga:

Keep being willfully selective in ur understanding. For some years now, Nigerian airports have been ranked the worst in the world. Even Ghana with smaller airport is better ranked and run than Naija’s. Folks like you with limited travelling exprience stay online and argue with emotions instead of facts.
Kenya is a hub in Africa and a member of SkyTeam, which includes Delta, KLM, AirFrance etal, it means that their service delivery and efficiency at par with these global brands. It has taken Kenyan Airways, tens of years to achieve these milestones. Naija is still talking about unidentified investors.. there is no upside in investing in Naija aviation with govt involvement.
Naija has neither comparative nor absolute advantage in any aviation-related businesses in Africa. Most foreign airlines go to S/A and north/Africa for parts and maintenance; they even prefer to refuel in Acccra to Lagos.
Most important, Nigeria doesnt have a huge flying population...only 11m folks flew in 2017, and out of that number, only 3.5m flew on intl route.. That’s 1.9% of Naija population! Why speend $300m to help 1.9% of Naija? This policy has zero economic impact!!

Phagyrhe:


Ethiopian Airways is the most profit making African airline.

https://www.google.com.ng/amp/s/www.thisdaylive.com/index.php/2017/08/18/ethiopian-airlines-targets-10bn-revenue-146-destinations-by-2025/amp/

Kenya Airways

https://www.reuters.com/article/kenya-airways-results/kenya-airways-posts-8-88-mln-operating-profit-for-apr-sept-idUSL9N1BX00M

https://www.kenyans.co.ke/news/28012-kenya-airways-2017-financial-report-records-ksh13-billion-operational-profit

, other are doing great jobs and that should be a sort of motivation that we can set up a great airline too. [/b]

Phagyrhe:


Lol... Okay sir

PassingShot:

In big business as this, at this stage, the only estimate required and mostly known is the initial required capital which was given as $300m.

Nothing in Chike Obi claim to prove wrong by the govt because what the govt has presented is clear except for mischief makers.

I don try for you o.

Aquariann:


Hello Passingshot. Please I've got some questions I'll like your take on if you don't mind. Sent you a PM

Aquariann:


Hello Passingshot. Please I've got some questions I'll like your take on if you don't mind. Sent you a PM

PassingShot:

I've replied "Hi. What's up?" since there was no message other than NL saying you'd like to contact me. You can send the message now though.

Iamgrey5:
Bro

Do you know me form somewhere before jumping into conclusion about my travel history?



I have been to Kenya airport in Nairobi, I have been to OR tambo in Jo'burg, I have been to King shaka in Durban, I have been to mutlritala in Lagos and Azikwe in Abuja.

So are you telling me that Most foreign airlines also fly to South Africa and north Africa to pick up Nigerian passengers leaving Nigeria right ?

I have boarded both Kenya and South African airways more than once. I boarded them in Nigeria


I don't write shit without the knowledge of what I am writing.

Nigeria has one of the largest passengers flying anywhere in Africa.

Do you have any idea of Nigerians leaving this country everyday at all? I bet a trip to the airport will clear things up for you

Airport infrastructure doesn't really matter in this context because Muri in Lagos and zik in Abuja remains the only airports majority of the Nigerians leaving the country have to pass through.

If you are bright enough, you will have googled the busiest airports in Africa before spewing this nonsense.

BigIyanga:

Keep manufacturing non-existing numbers in your mind. I have provided u with the numbers.. what other numbers are you talking about. Naija doesnt have any aviation infrastructure comparable to any of those airports you mentioned. All those countries have some world-class existing infrastructure while Naija has none. Your comparison is not good!

Iamgrey5:
Bro

This is a dumb submission that you continue to hammer at, infrastructure have nothing to do with passenger figures, especially when it comes to Nigeria


I have already showed you an article about the figures on Nigeria customers yesterday


Google is free!


Google "Airports with the highest customers in Africa"

if you can't find Nigeria airports in the top ten on most list in Africa, I give you the permission to come to insult me

PassingShot:
I read with great shock the outright lie tweeted by Mustafa Chike-Obi and posted on the FP of Nairaland (https://www.nairaland.com/4631046/mustafa-chike-obi-former-amcom-boss) about the initial capital for the newly unveiled national carrier - Air Nigeria. The claim by the former AMCON Boss that $300m initial capital for the national carrier represents 5% of the initial capital is not only misleading but mischievous and unpatriotic.

For clarification sake, the $300M is the total initial capital required for the first three years of the airline and it is only 5% (max.) of this amount ($15m) that the FG is obliged to contribute. It's the private investors that will contribute the remaining balance of $285m.

The above position was clearly reported by Reuters here http://www.africanews.com/2018/07/20/nigeria-air-seeks-strategic-partner-to-invest-300// where it clearly stated “The initial capital is likely to be in the range of $US 150 to 300 million, invested in tranches over time from start up through the first years of operation,” a government document stated.

It was also clearly reported by Vanguard here https://www.vanguardngr.com/2018/07/nigeria-air-to-gulp-8-8m-preliminary-cost-300m-as-take-off-cost/ . Punch clarifies the 5% stake of the FG in the Project by stating “The Nigerian Government will not own more than 5% (maximum) of the new National Carrier. Government will not be involved in running it or deciding who runs it,” he said http://punchng.com/breaking-nigeria-unveils-name-of-national-carrier-logo/

Now, if the man who prides himself a mathematician is to be correct with his tweet, is he now saying that the initial capital is $6bn? If $300m is 5%, surely the 100% required initial capital required must be $6bn. Chike-Obi needs to tell us where (if it exists anywhere at all) he got his own figure from.


The tweet by the Mustafa, just as that by Oby Ezekwesili should be of great concern to all patriotic citizens of our country who genuinely seek to see Nigeria develop and succeed. Their tweets are a clear indication that many Nigerians do not mind cutting their nose to spite their face! They hate the president so much and if the total failure of the country is the only thing that must happen to justify their hatred for the president, it's all well and good in their own books.

Arondizuogu:


So we want to buy the lowest Boeing commercial plane abi? And we are targeting 84 destinations at icky off? That plane is phasing out, hope you know.
How will 5 planes deliver 84 destinations? You do know that staff would be paid? The aviation industry would be paid too? $300 million dollars would not go anywhere in starting an airline carrier. Do you even think that anyone u see on nairaland is a riffs raff?

sholatech:
You see what we meant advising you not to imply? And your attack dogs went loose against us.

Now, the Federal Ministry has clarified further and any layman will see your strong statement that IT IS ONLY 5% MAX that the FG is obliged to contribute.

Let me first show you what is very clear as of today..This first year 2018, Government is releasing/investing $55million. I repeat, $55m is initial investment by Federal Government of Nigeria in 2018.

See below please:

$8m represents startup capital for offices required
for takeoff. But $300m is the entire airline cash flow
funding requirements (aircraft, operations and
working capital) for three years (2018, 2019 and
2020).
“This funding can be in the form of equity or debt.
The financial model estimates cash flow
requirements as follows 2018 ($55m – $8 million is
included here), 2019 ($100m) and 2020 ($145m). In
order to ensure take of the airline in 2018
government will provide US $55 Million upfront
grant/viability gap funding to finance startup capital
and pay commitment fees for aircraft to be leased
for initial operations and deposit for new aircrafts
whose delivery will begin in 2021.
“The remaining financial injection by government
will be determined by the quantum of equity that the
strategic equity partner will bring as a result of the
PPP competitive bidding process.. Government’s upfront
grant/VGF contribution to equity will be funded
through either a supplementary budgetary allocation
or development financial institutions like AFREXIM
bank, AFBD, ISDB etc, who have indicated keen
interest in funding the national carrier project
because of its bankability and profitability profile.”
On how government intends to procure the aircraft,
the NCAA official said: ” As you may be aware it’s
almost impossible for you to pay for and get a new
aircraft immediately because it is not an off the
shelf item like indomie noodles. However, as part of
discussions with major Aircraft Manufacturers, the
Government will pay deposits for brand new
aircrafts and the manufacturers will support Nigeria
Air in getting very good dry lease aircrafts coming
directly from c checks and certified by the original
manufacturers. http://thenationonlineng.net/government-clears-air-on-controversies-over-national-carrier/

BigIyanga:

You keep exposing your limited knowledge in regard toaviation biz. Naija has only 3.5m intl travelers shared among 30 airlines. BA, KLM, Delta, Emirates, Qatar, Kenya etal loyal customers arent going to switch cos New Naija Airline’s customer service is going to suck.
These airlines with better infrastructure and customer service have cornered the market— marrket share.

PassingShot:

This is in line with my explanation. Thanks.

AZeD1:

No it's not, the Minister says at start up the government will own 100% of the airline.

PassingShot:

But the government will eventually release 95% as time passes by.

And the $300m is not 5% of the initial capital as claimed by Mustafa Chike-Obi. Wasn't that the misrepresentation I set out to correct?

AZeD1:

Did you read the article?

PassingShot:


Because it’s a PPP, it has three stages – the project development stage, procurement stage and implementation stage. The project development stage was just concluded with the approval of the Outline Business Case, which the ICRC issued a certificate of compliance. Once the process gets to the PPP procurement stage, there will be an RFQ, Information Memorandum and RFP bidding process which will be made public, competitive and transparent. It is only after the PPP procurement process that the strategic equity investor will be known. At that stage the JV partners will be government and the strategic equity partner. Government’s equity share held in trust for Nigerians will be devolved to Nigerians via an IPO. The government will retain only 5% equity, the list of shareholders then will be available to SEC and the Nigerian Stock Exchange. At that point Nigeria Air Ltd becomes a public company subject to SEC, NSE and relevant CAMA rules for public companies. All PPP procurement and ownership moves will be made public. Signed up acceptance and approval of the management concession agreement will be a condition precedent for the IPO.”

He clarified that government is not entirely funding the airline.

His words “The Government is not funding the entire project. It’s just providing startup capital in the form of an Upfront Grant/Viability Gap Funding. Once the strategic equity investor is in place, they will be expected to build on the initial investment made.

$8m represents startup capital for offices required for takeoff. But $300m is the entire airline cash flow funding requirements (aircraft, operations and working capital) for three years (2018, 2019 and 2020).

“This funding can be in the form of equity or debt. The financial model estimates cash flow requirements as follows 2018 ($55m – $8 million is included here), 2019 ($100m) and 2020 ($145m). In order to ensure take of the airline in 2018 government will provide US $55 Million upfront grant/viability gap funding to finance startup capital and pay commitment fees for aircraft to be leased for initial operations and deposit for new aircrafts whose delivery will begin in 2021.




Please take your time to read and understand the above, especially the emboldened.

AZeD1:

I have read it very well and it's clear.

1) The first year, the needs $55M and since at that point, is fully government owned who provides the $55M?

2) The plan is issue an IPO in the second year really? Take an airline from start to IPO in a year? The Minister said this because he knows people like you would believe it.



We are still waiting for the sale of the Presidential fleet Buhari promised during campaign. In 3 years, this government hasn't been able to sell a couple aircrafts but someone wants me to believe it can take an airline from scratch to IPO in one year.

PassingShot:

Your failure to answer my initial question means you know I was right.

Now answer it this time: Was the claim by Mustafa Chike-Obi that $300m represent 5% of the required capital correct?

If yes, explain. If no, which is, then my clarification was in order. Even if the FG pays the initial $300m capital, it is not 5% but 100% of the initial capital.

The federal government of Nigeria (FGN) will assist in start-up and capitalization, and facilitate the process for opening up the capital of the airline to private sector financial investors. The FGN will not be involved in management decisions and control of the airline

AZeD1:

The Minister said government would own 5% and $300M was needed so yes he was right.

The Minister has gone from saying the government would own a max of 5% to owning 100% then divest which has proven all the naysayers right.

Below is what was contained in the original launch

Iamgrey5:
You don't even know to use Google

it is 6m

loyal customers kee? this one is a clown

You mean all those Nigeria trying to run away from Nigeria are loyal customers

You mean the 90% of Nigerians who probably travel once in a while are loyal customers

I travel at least sometimes and I am not loyal because I am Nigerian and I am price sensitive

You think flying is buying biscuits or what?

I am sure you have never been to a airport

PassingShot:

Stop mixing issues up. The govt stake will still be 5% at the end of the day. Yes, it will provide the initial capital 1005 ($300m) which will gradually be released to investors. Does this validate the position of that hate-filled Chike-Obi that $300m represent 5% of the initial capital when IN FACT the $300m is the total initial required capital?

I am tired of repeating the same message please.

AZeD1:

There's not hate filled position, only Buhari's supporters think everybody hates them.

Chike Obi was right.

1) Did the Minister talk about IPO during the launch?
2) Did he talk about "Nigerians" being the majority shareholder at launch? Rumours of Ethiopian Air or Qatar Air being the majority owner at launch.
3) Why did the minister at launch say the Government would own a max of 5% when the initial plan was for the Government to own 100%?

People have called the Minister on his BS and he is trying to back pedal.


@Phagyrhe, The launch is not even one week and the Government is changing its story. One would expect any serious person going into a capital intensive business like aviation to have a well thought and laid out plan but not this government.

Like I said in my first post, if look like bs, sounds like bs, it is bs.

BigIyanga:

Most importantly, how come they have not given any names of potential aviation operators with proven track record? Why are conpanies like ethiopia,kenya, Maros, SAA, gulf airlines not interested?
How farcab $300m go when a new 747 passenger jet is around $400m?

BigIyanga:

These are numbers for you !
https://www.google.com/amp/s/www.dailytrust.com.ng/amplite/nigeria-air-passenger-traffic-drops-26-in-2017.html
3.57m intl passengers. I know facts are hard for you to accept.
As per loyal customers.. KLM/AirFrance/Lufthansa/BA offer cheaper and better flying exprience on EU routes than Naija airline.
Turkish, Delta and co offer cheaper and better flying exprience than Naija Airlines on US routes.
How can new Airline compete?
Still on loyalty, I fly Skmiles airlines.. Kenya, Delta, Klm, AirFrance, because I get the same level of service. New Airline is not going to have such agreement .
Ethiopia is part of Star Alliance with United, Lufthansa and co.. you can earn miles and get the same standard of service.
On African routes, Kenya, Ethiopia, Air Maroc and SAA with existing infrastructure will swallow this new airline in terms of service delivery and ontime departure.

AZeD1:

There's not hate filled position, only Buhari's supporters think everybody hates them.

Chike Obi was right.

1) Did the Minister talk about IPO during the launch?
2) Did he talk about "Nigerians" being the majority shareholder at launch? Rumours of Ethiopian Air or Qatar Air being the majority owner at launch.
3) Why did the minister at launch say the Government would own a max of 5% when the initial plan was for the Government to own 100%?

People have called the Minister on his BS and he is trying to back pedal.


@Phagyrhe, The launch is not even one week and the Government is changing its story. One would expect any serious person going into a capital intensive business like aviation to have a well thought and laid out plan but not this government.

Like I said in my first post, if look like bs, sounds like bs, it is bs.

Phagyrhe:


Hmm...

Iamgrey5:
I have taken the liberty of attaching pictures and multiple sources since you don't know how to use google

I also know the facts first hand having been to two other major airports in Africa

Please don't embarrass yourself further. How many klm and co fleets operate from Nigeria self

You obviously don't know jerk !



https://answersafrica.com/list-of-busiest-airports-in-africa.HTML


https://www.africa.com/africas-5-busiest-airports/