Max Kingsley-Jones/LONDON

Nigeria Airways has begun the next phase of rebuilding its network as it gears up for partial privatisation in early 2001. The airline has expanded its joint weekly services with British Airways between Lagos and London Heathrow from three to six frequencies, and introduced a dedicated Boeing 747-200 in its own colours, damp-leased from BA.

"Working with BA has helped us improve our product and boost our loads," says Nigeria Airways chief executive Jani Ibrahim, who hopes to extend the co-operation.

BA and Nigeria began co-operating on services after air services were restored last year following a suspension in 1997. The 747 is being operated with BA flightdeck crew and a mix of BA and Nigeria cabin crew. Ibrahim says Nigeria pilots are undergoing training to convert the deal into a full dry lease.

The Heathrow flight operates as a BA/Nigeria codeshare. "We aim to link into BA's network to destinations beyond London", says Ibrahim.

A codeshare on BA's daily Gatwick-Lagos services is also being discussed.

Nigeria has launched a study into its privatisation, and Ibrahim expects the sell-off to be concluded in about 18 months' time. ISC, a division of the World Bank, was appointed as adviser last month and should complete its study and report back within 14 months.

"The government has decided to sell 40% to foreign investors, 20% to local investors and retain 40%," says Ibrahim, adding that the aim is to secure a strong outside investor to help fund expansion and fleet renewal.

Ibrahim says a number of airlines have shown interest in investing, including BA, KLM, Lufthansa, Virgin, Swissair/South African Airways (SAirGroup) and Singapore Airlines. Ibrahim says that although part of the lease deal with BA is to prepare Nigeria for the oneworld alliance, ultimately the chosen partnership will be dictated by the shareholder selected.

The airline continues to rebuild after its recent drastic downsizing. Its two Airbus A310s, three Boeing 737-200s and a McDonnell Douglas DC-10-30 are being reactivated as new destinations are added.

Bellview Airlines is contracted to operate Lagos-Amsterdam flights on the airline's behalf. Nigeria is restoring services to Johannesburg with an A310. Flights to Dubai and Jeddah are being considered.

Source: Flight International