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Airline Operators React to Recent Court Ruling Against Nigeria Air Sale

Esther

The Airline Operators of Nigeria (AON) has expressed their approval of the judiciary's decision to nullify the sale of Nigeria Air to Ethiopian Airlines.


This reaction came after Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos declared the sale null and void on Monday, August 5, 2024.


The court ruling has introduced further uncertainty to the future of Nigeria Air, which was already facing legal and financial challenges.


Dr. Abdulmunaf Sarina, President of AON, lauded the court's "bold and patriotic declarations and orders," stating that the entire bidding, approval, and unveiling processes of the purported national carrier were a "sham set up to hoodwink Nigerians."


He emphasized that the partnership between the Nigerian government and Ethiopian Airlines, where Ethiopian Airlines held a 49% share compared to the government's 5% and the consortium's 46%, violated several national laws and regulations.


The plaintiffs in the case included the Registered Trustees of AON, Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, and Topbrass Aviation Limited.


They argued that the deal was a surreptitious plan to undermine Nigerian indigenous airlines and hand over the country's aviation market to Ethiopian Airlines.


Justice Lewis-Allagoa granted all the reliefs sought by the plaintiffs, except for the ₦2 billion ($1.2 million) damages claim. He stated, "The proposed establishment of Nigeria Air should not be carried out," affirming the plaintiffs' position on the illegality of the bidding process.


The judge also noted that the sale violated the Companies and Allied Matters Act 2020, the Securities and Exchange Commission Nigeria Consolidated Rules & Regulations 2013 (as amended in 2022), and several other national laws.


Since assuming office last year, President Bola Ahmed Tinubu has been actively engaged with the complexities surrounding this matter. The new aviation Minister, Festus Keyamo, revealed on November 27, 2023, that the deal granted a five-year tax exemption to Ethiopian Airlines and conferred key positions of responsibility within Nigeria Air.


The project faced criticism and suspension in June 2023 due to concerns about its sustainability and the potential $8.8 million in preliminary costs and $300 million in take-off expenses.


Sarina also applauded President Tinubu's government for suspending the Nigeria Air process, thanking the court for standing tall in the face of pressure from high quarters and for exonerating AON and other well-meaning Nigerian indigenous airlines.





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