NATIONAL CARRIER: THE 4th ATTEMPT?

Why is a National Carrier Needed? To absorb employees of failed major carriers by providing employment and assuages nerves of restive unions or to act as a means of providing additional fleet, capacity, and frequency in support of other registered carriers or to fill a vacuum and avert the monopolistic tendencies of surviving airlines.

The first scenario has been overtaken by events while second and third is the crux of the present agitation for another national carrier, considering the present set of flag carriers have not done anything to reflect national ownership like their counterpart in the banking industry which naturally muster public support and protection. Also they are floundering with suffocating debts, with the international routes and frequencies that should be money spinners, are apparently controlled by foreign airlines. We also lack undiluted low cost carriers, adequate regional jets or props services, finance and a regulated consolidation regime that will bolster the critical mass of our carriers and improve passenger enplanement to the benefit of all stakeholders in general and the economy in particular.
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Let us learn from Mexico and India, they had two national carriers each. India has merged Air India and Indian Airlines, while the Mexican government has sold Mexicana and Aero Mexico, the surviving ones are either heavily indebted or liquidated. Also countries like Greece, Argentina, Ghana, Senegal, Cameroun, Gabon, Tanzania and Zambia have liquidated their national carriers and have tried unsuccessfully to have another viable carrier despite sinking lots of public funds in their respective new national carrier.

We should not forgot that our shipping industry have failed thrice in their attempt to set up a national carrier while the twitted comment of our Honourable Minister should be the fourth attempt in the industry, after the failed attempt of Capt Joji and Mrs. Kema Chikwe. The reality check is, Nigeria Airways failed with absolute monopoly of the bilateral air services agreement, government subsidy and protection therefore the new national carrier will fail woefully in the present competitive, open skies ridden aviation industry, if the government is not meticulous with the options therein.

If we must have a national carrier, then we should ponder over the cost, risk and lessons from other climes, also we should dust the report of the International Finance Company that was contacted to work out modalities of a new carrier in the early days of the present democratic setting.

The timeline of this administration, present policy makers and the penchant of reversing or abandoning policies of previous government, even when they share the same political ideology are the inherent problems, also the protection needed by the new carrier will shackle and compound the problems of the local airlines. It is a better option for the government to buy into existing flag carriers, namely Aero, Air Nigeria e.t.c, after due diligence rather than starting from ground zero.

Thereafter, the government can look for a reputable institutions to manage their interest in them till they are ripen for a public offer, while Government continue to protect, legislate and provide the coveted public travel to these carriers in the absence of an essential air services programme.

Government in the interim should consider a consolidation process. The last consolidation exercise was a ruse as the only beneficiary of that process is the Corporate Affairs Commission (CAC), due to the hefty taxes collected from airlines. It is pertinent to note that barely six months after the paper consolidation process; two domestic airlines that passed the process were grounded over maintenance related issues, five other airlines have beaten the dust thereafter.