Ethiopian Airlines-led consortium to help newcomer Nigeria Air take-off

Ethiopian Airlines, Africa’s largest air carrier by fleet size, is reviving Nigeria’s bid for a national flag carrier, as it seeks to build its regional network and add to its portfolio of stakes in airlines across the continent.
After many failed attempts to launch a profitable airline, Nigeria’s federal government has enlisted Ethiopian Airlines to help its new national carrier take off. Abuja has recently selected a consortium led by Ethiopian Airlines to help organize and launch its new flag carrier. The establishment of a ‚Nigeria Air‘ was one of President Muhammadu Buhari’s campaign pledges when he first won the presidency in 2015 and he is keen to see the promise implemented before he relinquishes office in May 2023. Despite lots of skepticism, especially regarding the planned national airline’s relevance, sustainability and burden on the government budget, now the project is back in the works. In September, Ethiopian Airlines was revealed as the preferred bidder for shares in the new airline.
Under a new deal Ethiopian Airlines will own a 49% stake in Nigeria Air, while the Nigerian Sovereign Fund will take 46% and the Nigerian federal government the remaining 5%. With initial capital of $300m, and plans to have 30 aircraft within four years, Nigeria Air will launch a service between Abuja and Lagos and add other routes later. Ethiopian Airlines has a history of helping other continental carriers take off. In 2018, then-Ethiopian Airlines CEO Tewolde Gebremariam, outlined plans to found new African carriers across the region by helping countries to set up new companies or overhaul existing ones. The airline has invested in carriers in Malawi, Zambia, Mozambique, Chad, and Togo and has this year been involved in talks with the government of the Democratic Republic of Congo.