Search

 

Cablegate: Saa Named Nigerian Eagle's Technical Partner

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS LAGOS 000125

SIPDIS

STATE PASS DOT FOR KEVIN SAMPLE

E.O. 12958: N/A
TAGS: EAIR ECON NI
SUBJECT: SAA NAMED NIGERIAN EAGLE'S TECHNICAL PARTNER

REF: 03 LAGOS 2153

1. (U) Summary: On Wednesday, January 14, GON officials
announced the selection of South African Airways (SAA)
as Nigerian Eagle Airlines' technical partner.
Executives close to the deal expect the new airline to
replace Nigeria's ailing national carrier, Nigeria
Airways Limited, later this year. End summary.

2. (U) Competition for the position of technical
partner was far from fierce: SAA was the only
established international airline to answer the GON's
November 17 call for expressions of interest in
Nigeria's new flag carrier. Even so, the airline's
proposal was subject to a thorough evaluation.
Executives at Financial Derivatives Company (FDC)
Limited, the Lagos-based economic think tank acting as
the project's financial advisors, compared SAA's
operations to those of Lufthansa and report being
"impressed" by SAA's technical and managerial capacity.
They say the airline is capable not only of operating
domestic and regional flights, but also of providing
long-haul point-to-point services to London, Dubai,
Saudi Arabia, and Johannesburg.

3. (U) As Nigerian Eagle Airlines' technical partner,
SAA will exercise management control and direct the
airline's day-to-day operations. SAA is expected to
purchase at least 30 percent of the carrier's $60
million total equity, although FDC executives say SAA
would like to control a slightly larger proportion.
The financing, they say, has not been fully agreed, but
they expect core investors to hold 40 percent of
Nigerian Eagle Airlines and intend to offer the
remaining 30 percent to individual shareholders in an
initial public offering slated for late 2004 or early
2005 (or shortly after the new carrier posts two
consecutive quarters of earnings). Nigerian Eagle
Airlines will be wholly privately owned, but as
Nigeria's designated flag carrier, it will acquire
landing rights at major airports and gain access to the
routes available under the GON's existing bilateral air
services agreements.

4. (U) Comment: Having found a reliable technical
partner, one of the only things Nigeria's new flag
carrier lacks is a group of core investors. Finding
them is FDC's next step. Nigerian Eagle Airlines seems
to have gotten off to a good start. If it gets off the
ground later this year, Nigeria's aviation industry
should receive a substantial boost - and begin to
repair a reputation badly damaged by Nigeria Airways'
failures. End comment.

HINSON-JONES

© Scoop Media

 
 
 
World Headlines

 

Syria: Economic Decline, Rising Hunger And Surging Humanitarian Needs

Syria’s fragile economy has “suffered multiple shocks” over the past 18 months, with its currency plummeting and joblessness swelling as people struggle to cover their basic needs, the UN Emergency Relief Coordinator told the Security Council ... More>>

OECD: Final Quarter Of 2020 Shows Continued Recovery In G20 International Merchandise Trade

G20 international merchandise trade continued to rebound in the fourth quarter of 2020 ( exports up 7.2% and imports up 6.8%), following the sharp falls seen in the first half of 2020, as lockdown measures affected trade globally. Although growth ... More>>

UN Report: Civilian Casualties Surged After Peace Talks Began In Afghanistan

Monitoring by the UN Assistance Mission in Afghanistan, UNAMA, and the UN Human Rights Office has revealed that despite a drop in civilians killed and injured overall in 2020 there was a rise in civilian casualties following the start of peace negotiations ... More>>

Focus On: UN SDGs


2021: Critical Year To ‘reset Our Relationship With Nature’ – UN Chief

During this time of “crisis and fragility”, the UN chief told the United Nations Environment Assembly on Monday that human well-being and prosperity can be vastly improved by prioritizing nature-based solutions. Painting a picture of the turmoil ... More>>


Paris Agreement: UN Secretary-General António Guterres To Mark U.S. Reentry With Envoy For Climate John Kerry

Watch live at webtv.un.org UN Secretary-General António Guterres will join U.S. Special Presidential Envoy for Climate John F. Kerry at an event marking the United States’ reentry into the Paris Agreement this Friday. The discussion with the Secretary-General ... More>>

WeBeliev: Scoop In Conversation With Abhishek Sinha, Founder Of WeBeliev, An NZ Crowdfunding Platform

WeBeliev supports 17 SDGs, launching sector specific campaigns every month Q. What is WeBeliev and why did you start it? A. WeBeliev is a Singapore-registered crowdfunding platform aimed at fundraising for all the 17 Sustainable Development Goals (SDGs) ... More>>