As the Federal Government seeks strategic partners to operate its new national airline, Nigeria Air, it has been estimated that an initial takeoff capital of between $150 million and $300 million would be needed.

According to the government, the strategic partners are expected to run the airline as a private sector initiative to avoid suffering the same fate as the defunct Nigeria Airways which went under in 2003.

The Nigeria Airways, founded in 1958 was wholly owned and managed by the Federal Government.

The Minister of State for Aviation, Hadi Sirika on Wednesday while speaking at the Farnborough Air Show revealed that the Federal Government would not own more than five per cent of the new carrier.

“The initial capital is likely to be in the range of $150million to $300 million, invested in tranches over time from start up through the first five years of operation,” a document from the ministry said.

While revealing that the government would provide initial capital, the document added that the FG would also facilitate the process for opening up the capital of the airline to private sector financial investors.

Nigeria Air is expected to have a fleet of 30 aircraft in five years with hubs in Lagos and Abuja, the nation’s two main cities and will serve domestic and international markets.

Richard Branson, a British billionaire set up the domestic and international carrier Virgin Nigeria in 2000 but pulled out in 2010 over what he said was interference by politicians and regulators.

The airline he created, which was later rebranded Air Nigeria, closed in 2012 after collapsing under a ₦35 billion of debt which left it unable to pay staff, leading to its eventual liquidation.