Ethiopian Airlines faces law suit in Nigeria

Ethiopian Airlines is facing backlash in Nigeria as about eight Nigerian airlines and their association have taken the government of Nigeria to court, challenging the national carrier deal that involves Ethiopian Airlines and Nigerian Air. The domestic airlines, led by Roland Iyayi, the CEO of Top Brass Aviation, are seeking to halt the deal and revoke the Air Transport License granted to Ethiopian Airlines. The lawsuit lists Nigerian Air, Ethiopian Airlines, the Minister of Aviation, and the Attorney-General of the Federation as defendants. The CEO of Top Brass Aviation spoke to CNBC Africa's Julius Bizimungu regarding the ongoing legal battle and concerns about the transparency and potential negative impact of the deal on the Nigerian aviation industry. The court process is still ongoing, with the domestic airlines expressing their reservations about the partnership between Ethiopian Airlines and the Nigerian government. The key contention raised by the domestic carriers is that the deal with Ethiopian Airlines is not in the long-term interest of the Nigerian consumers and may lead to a monopolistic situation detrimental to competition in the market. The concerns stem from a perceived lack of transparency in the process and suspicions of favoritism towards Ethiopian Airlines, with allegations of links between the transaction advisory firm and the aviation minister. Despite the legal proceedings, the domestic airlines are open to the idea of a national carrier but stress the importance of a strategic partnership that fosters growth and competition in the Nigerian aviation market. They argue that any potential partner should complement Nigeria's position as the largest aviation market in Africa and promote a mutually beneficial relationship. However, the current deal with Ethiopian Airlines is viewed as a threat to the industry's sustainability and the interests of the country and its citizens. The debate continues as the Nigerian aviation sector grapples with the implications of the proposed partnership and seeks to protect the market from unfair competition and potential monopolization. The outcome of the legal battle remains uncertain, but the domestic airlines remain steadfast in their resolve to challenge the deal and safeguard the future of the Nigerian aviation industry.