As indicated by the Chairman of the Airlines Operators of Nigeria (AON), Capt. Nogie Meggison, setting up an airline requires tremendous capital invstment and it will cost the nation about N180 Billion yearly to run Nigeria Air, Guardian reports.
Meggison said it was in this light AON kept on requiring a reexamine, particularly given the intense monetary circumstance in the nation and the fact that “it is a hopeless thought”
“Setting up of National Carrier will cost Nigeria at least N1.08t ($3b). A single Boeing 777 as of today costs about N115.2b ($320m).“Is it wise and should it be our priority as a nation to take $3b from our coffers today and put into a venture that will for sure go down the drain within a maximum of five years it will take to establish a national carrier?
Also, bear in mind that the national carrier will need an additional cash injection of N180bn ($500m) subsidy per year on average for the next 10 years to keep the airline afloat, while about 97 per cent of the 200 million Nigerian masses today are grappling for the basic necessities of life; food, shelter, electricity, water, education and good roads,” he said.
“Just recently, the South African government had to inject $2m into the South African Airways, but how many times will a government be bailing out a national airline? There was a time Alitalia was bailed out by the Italian government, and when it found out that it was no longer tenable, it turned to privatisation.
“I am a businessman. If I have already lost $5m and I see that my continued exposure to the same enterprise would amount to $100m loss, I would choose, which of the two options is cheaper for me. And that will be $5. Meaning that no matter how much the government has expended now, it will be pittance to what it will lose in the long term. For me, I would stop now instead of doing something that is not sustainable.”