Nigeria selected Ethiopian Airlines (ET) to become Nigeria Air’s technical partner after ET came out as a winner of the technical bidding process and financial bids by scoring 89/100 and 15/20, respectively.

ET is expected to provide equipment and funds to Nigeria Air. However, according to THISDAY, a Nigerian newspaper, Ethiopian would provide equipment, technical personnel, and management for Nigeria Air but not funds.

The Nigerian Government would provide support for Nigeria Air including financial guarantees and fiscal incentives to see the airline’s success. It has already earmarked facilities for the airline at various airports owned by the Federal Government of Nigeria and managed by the Federal Airports Authority of Nigeria.

Nigeria Air would have an initial capital of USD 300 million and plans to have 30 aircraft within four years.

Ethiopian Airlines is the leading airline in Africa. It will have 49% stake in Nigeria Air while Nigerian Sovereign Fund owns 46% of the shares and the Nigerian Federal Government controls the remaining 5%.

Source: THISDAY and Reuters