Business
Court Nullifies Nigeria Air Sale To Ethiopian Airlines
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COURT NULLIFIES NIGERIA AIR SALE TO ETHIOPIAN AIRLINES
By Soni Daniel
Daily Hint= In a significant ruling on Monday, the Federal High Court in Lagos has invalidated the sale of Nigeria Air to Ethiopian Airlines (ET). Justice Ambrose Lewis-Allagoa, presiding over the case, delivered a judgment that not only nullified the sale but also halted the Federal Government’s plans to establish U5 as the country’s flag carrier.
The proposed flag carrier’s identity was revealed in July 2018 during the Farnborough Air Show in the UK. The airline planned to start operations on May 29, 2023, following the delivery of its first Boeing 737-800 aircraft on May 26, 2023. However, resistance from domestic airlines and problems getting an Air Operator’s Certificate (AOC) caused the start of operation to delay.
Ethiopian Airlines, the airline’s parent company, declared in August 2023 that it would start operations in October 2023, using a fleet of eight airplanes and twelve wet-leased aircraft from Boeing, a plan that has now gone awry.
DETAILS OF THE COURT RULING
The court’s decision came in response to a lawsuit filed by the Registered Trustees of the Airline Operators of Nigeria and five other entities in the aviation sector. Justice Lewis-Allagoa granted most of the reliefs sought by the plaintiffs, with the exception of a ₦2 billion damages claim for alleged wrongful exclusion and improper bidding processes.
The plaintiffs in the case included Azman Air (ZU), Air Peace (P4), Max Air (VM), United Nigeria Airlines (U5), and Topbrass Aviation Limited. They brought the suit against Nigeria Air and ET, the former Minister of Aviation Senator Hadi Sirika, and the Attorney-General of the Federation.
Central to the plaintiffs’ case was a request for the court to invalidate the entire bidding and selection process for the Nigeria Air project. Furthermore, they sought to overturn the approval and selection of ET as a partner, decisions made by former Minister Sirika and former Attorney General Abubakar Malami.
This ruling marks a significant setback for the Nigerian government’s aviation plans and raises questions about the future of the country’s national carrier project.
