FG gives reasons for temporary suspension of National Carrier

The federal government has explained that the national carrier which was earlier billed to kick off in December was suspended temporarily because the process to actualize it was delayed.

The Minister of State for Aviation, Hadi Sirika, said the transaction advisers did not complete the process on modalities on the ownership of the new airline in time.

He added that Lufthansa, which was the first approved transaction adviser was rejected due to its outrageous demands which included opening an escrow account, refusal to pay tax and demand for 75 percent upfront payment adding that another major factor was the inability of the federal government to provide sovereign guarantee for the procurement of 30 airplanes estimated at 300 million Dollars to be paid in installment till 2020.


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