Ethiopian Airlines set to own 49% of Nigeria Air

* Also owns 49% stake in Air Malawi

Maravi Express

Africa’s largest airline, Ethiopian Airlines has been selected by Nigeria’s Ministry of Aviation as the preferred bidder for Nigeria Air as the country’s new flag carrier.

The airline, which owns 49% of Air Malawi, will also own 49% of Nigeria Air, according to a report on airport-technology.com.

Ethiopian Airlines — which is 100% owned by the government of Ethiopia — also owns 45% of Zambia Airways, 49% of Guinea Airways, 100% of Ethiopia-Mozambique Airlines and 49% of Chad Airlines.

Airport-technology.com reports that the deal was executed under a public-private partnership model in which Nigerian Sovereign Fund will own a 46% interest, while the remaining 5% stake will be held by the Nigerian federal government.

Nigeria Aviation Minister Hadi Sirika is quoted as saying: “We are going to initially bring in six Boeing 737 aircraft, and between the third and fourth years, the airline will be able to acquire up to 30 aircraft.

“Nigeria Air is a limited liability company that will have no government intervention. Nigeria Air will have an initial capital of US$300 million and plans to have 30 aircraft within four years,” Sirika is quoted as saying, adding that a contract for three Boeing 737-800s has been finalised with Ethiopian Airlines.

There are 3 airlines operating flights to Malawi, including United Airlines, Ethiopian Air and Kenya Airways.