Nigeria Airways, Nigeria Air and an Analysis of Phoenix Syndrome

Abstract

On 18 July 2018 the Federal Government unveiled a new national carrier, Nigeria Air, at the Farnborough International Airshow in England. Nigeria Air was scheduled to commence operations in December 2018. It was to be largely private-driven with Government holding just 5% equity. However, on 19 September 2018, the Federal Government announced a suspension based on what the Government described as “strategic reasons”. The unveiling of Nigeria Air was done 15 years after the liquidation of the national carrier, Nigeria Airways. Established in 1958, Nigeria Airways was liquidated in 2003 after accumulating debts in excess of US$500 million. An estimated N83 billion is being owed former workers of the defunct carrier notwithstanding that the Federal Executive Council had reportedly, in September 2017, approved N45 billion for the settlement of the debt. The above facts provide a backdrop for an analysis of phoenix syndrome. Although the planned rebirth of Nigeria Airways as Nigeria Air smacks of phoenix syndrome, the circumstances of the rebirth places it outside the purview of a phoenix company. Consequently, this article merely seizes this opportunity to highlight the phoenix syndrome and English law’s legislative and judicial response to it.