Ethiopian Airlines to Invest in Nigeria Air

DALLAS - Ethiopian Airlines (ET), the government-owned airline based in Addis Ababa, has been selected as the technical partner and the primary investor in Nigeria's national airline, Nigeria Air (VK).

The Ethiopian giant was chosen before the new operational launch date of June 2023. VK Flight operations were originally planned to take place in April 2022.

Following its receipt of the Air Transport Licence (ATL) from the Nigeria Civil Aviation Authority (NCAA) in June, the Nigerian government is moving on with its plans to meet the start date. The permit is valid from June 3, 2022, through June 2, 2027.

Given that a core investor must hold at least 51% of the stock in a government-owned company, as defined by the Bureau of Public Enterprises, Ripples Nigeria recognizes that ET's selection as a core investor in VK suggests that the former will likely acquire the 49% stake in the latter.

A source familiar with the matter told Ripples Nigeria, “Ethiopian Airlines has the equipment needed for the startup of the new national carrier, Nigeria Air. It has many Bombardier Dash 8 aircraft, which would be the equipment that would be deployed with the additional deployment of a few Boeing B737 NG aircraft. The airline is most prepared to support the Nigerian government to actualise its national carrier ambition.”

Featured image: Ethiopian Airlines ET-ASG Boeing 787-8 KIAH. Photo: Brad Tisdel/Airways