Ethiopian Airlines’ Boeing 737 Max Deal for Nigeria Air in Limbo

Ethiopian Airlines had sealed a deal to provide B737 MAX aircraft for Nigeria Air, the prospective joint venture national airline currently under re-evaluation by Nigeria’s Aviation Minister Festus Keyamo. In an exclusive interview with Nigerian Daily Trust newspaper, Ethiopian Airlines CEO Masfin Tasew Bekele disclosed that the airline had signed a lease agreement for three brand-new B737 MAX planes from Canada, but the project faced uncertainties.

According to Tasew, Nigeria Air, a 51/49 public-private partnership won by Ethiopian Airlines-led consortium, encountered obstacles following legal challenges from the Airline Operators of Nigeria (AON) and the appointment of a new aviation minister. Despite earlier plans for Nigeria Air’s debut in October 2023, the certification process has been put on hold.

Tasew emphasized that Ethiopian Airlines initially hesitated to engage in the project but was approached by the Nigerian government in May 2022. The government’s request led to a bid participation, where Ethiopian Airlines was selected to assist in establishing the national carrier. The deal included provisions for majority Nigerian investors, a 5% government share, and collaboration on strategic points.

However, differences arose during the preparation of the shareholder agreement, and Nigerian airlines expressed objections, leading Ethiopian Airlines to consider withdrawal. Despite challenges, the Nigerian government insisted on the project’s importance and requested Ethiopian Airlines to await a decision, which Tasew confirmed they were willing to do.

Tasew highlighted the airline’s willingness to support Nigeria in establishing the national carrier but clarified that the government needed to resolve the ongoing legal case for the project to proceed. The CEO stated that Ethiopian Airlines respected the Nigerian government’s decision, whether to continue or cancel the project.

As the fate of Nigeria Air hangs in the balance, Ethiopian Airlines remains committed to supporting the initiative but awaits a clear resolution from the Nigerian government, leaving the ultimate decision in their hands. Stay tuned for further developments as the legal and strategic challenges surrounding the project unfold.