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ADEREMI'S NOTEBOOK

30 September 2004

Virgin Nigeria

It seems it is Virgin Group Month here. Yesterday, I posted about Virgin Galactic.

Richard Branson’s Virgin Atlantic has entered into a partnership to form a National Carrier to be called ‘Virgin Nigeria‘.

“With the appointment of Virgin, it has been agreed that the new flag carrier will bear the name ‘Virgin Nigeria’ for commercially prudent reason. The airline would be authentically Nigerian, covered by the Virgin brand, which has been quite successful in its various businesses,” Minister of Aviation, Mallam Isa Yuguda

I like the bit that it says commercially prudent. I think the company is begining to see some influx of foriegn, lets hope that is it is the start of a lot more to come.

Even though privately owned, it remains the collective property of the Nigerian nation and people and its existence must be reflective of this fact,” he added. He, however, regretted the unwillingness of Nigerian Airline Operators to respond to earlier invitations to be part of the flag carrier project but expressed hope that they would avail themselves of the new opportunities offered by the coming of Virgin Nigeria.

It is slightly discouraging that the local operators refused to join the venture. Nigeria Airways, the last national carriage before it disappeared had alot of teething problem including bad debt, bad management and entry refusal to certain parts of the world because of political reasons at that time. Richard Branson is more connected and experienced in the aviation industry so having him on board could get Nigeria the National Carriage to be proud of.

Tags: Business, Nigeria, Richard Branson, Travel, Virgin

Comments (13)

Phoenix September 30th, 2004 at 10am

hmmm, i’m not sure when the interests of a group of people and a business converge. if it’s supposed to be a national carrier, there really is no point making it Virgin Nigeria. Branson will agree with being a national carrier only as long as it makes business sense for VN to act as one. primarily, VN is a business venture, and not a national carrier. my 2c. of course, i might just be sidetalkin’, or i misunderstand what a ‘national carrier’ is.

Remi September 30th, 2004 at 1pm

I think I agree that Branson must have seen the business sense to agree to the deal. Having said that, it will make business sense because how can Africa’s populated country not have a national carrier (even if it is a privately owned). I think the concept/idea behind Virgin Nigeria is to have an airline that has the nigerian culture tighted knitted in the serivce been provided aboard the planes. As a result, visitors to the country or those using the airline get a taste of the culture and heritage (apart from 419 concept already existing in their minds) e.g British Airways is owned by individual shareholders and not by the British Government.

Phoenix October 1st, 2004 at 6am

my personal gripe is Nigerian goverment’s two-facedness in dealing with international investors - if either Branson or (not necessarily the present) Nigerian government has some ulterior motives or cold feet later on, it could spell death for the project. and as usual, it’s the normal Naiaj guy who gets in trouble for someone else’s selfishness, and the Naija guy, having no elastic limit, will keep ’suffering and smiling’!

Remi October 1st, 2004 at 9am

‘Suffering And Smiling’- one quote that sticks on my mind during exams when you just have to keep going. I digress.

As far I know Nigerian Government even if they have motives, it will be hard to see any other motive apart from the positive ones in this case. Since the government has no financial interest in the business. The government apparently wanted the country’s flagship airline to be privately funded and managed while government would only act as a facilitator, providing the ‘proper climate’. Indicating that if Branson tried to pull a fast one, the licence could be withdrawn.

Then again, Total/Shell/PZ Cusson/The south african telecom company (which i can’t remember the name) have all prospered in Nigeria to a certain extent, I see no reason for Virgin not to enjoy similiar growth.

Obi — October 3rd, 2004 at 9pm

Hey, late me make a contribution to this debate. Firstly, I do not honestly think that Virgin have a genuine interest in Nigeria. To be honest, it’s just building castles in the air, and generating a lot of publicity (and debate). This is not because of any reputation which the country may have, or any specific reason. It is purely because the idea is entirely speculative. Just like saying a designer outfit is to open a flagship store in Cornwall. Do you catch my drift???

Remi October 4th, 2004 at 8am

Obi, agreed - I get your drift but Cornwall and Nigeria. I doubt your comparison is complete. I would have compared it more to one of those emerging economies in Europe e.g Poland. While emerging but very much risky. I mean if FUBU or Ralph opened a flagship in Nigeria, we both know the dude will sell more than he hoped for. I am aware that not a lot of airlines from Europe are keen on the Nigerian route.

It is like giving having only one cab service that is willing to travel to Brighton because others have refused complaining that the road is too rough. Virgin is getting a niche route for almost next to nothing.

Nigeria is central to Africa and is desperate need of an airline that it can be identified with in terms of her beautiful culture.

Obi — October 4th, 2004 at 11pm

Remz, u took this comment too seriously. Virgin airline is good for one thing. Blowing a lot of hot air. Anyways, where did all the opinionated readers vanish to? Its just Phoenix, Amaka and occassionally, Tunde. We need a chat room up in this place!!!

Winds of Change.NET October 5th, 2004 at 7pm

AfricaPundit’s Regional Briefing: 2004-10-05
What to do with dictators; Darfur & chemical weapons; U.S. Training /Nigerian troops; Continuing crisis in Zimbabwe; Nigerian news; Sudan/Darfur update; Gun control in South Africa.

Remi October 6th, 2004 at 8pm

{I will try to act unserious as I make this comment.}
Obi, Chat Room? Well That would be tricky. I could set up a forum. Where is Tunde and Amaka? Good Question. Is there a Warwick University in America? Are you thinking what I’m thinking.

I think I killed all my readership over summer when I refused to blog for one reason or the other but hopefully peeps will return soonish.

Amaka — October 7th, 2004 at 2pm

*broken silence*
get ur mind out of the gutter child!

But seriously, what is there to say? At the end of the day its only a speculation! Whatever happened to making Nigerian Airways better is a mystery to me!

Remi October 7th, 2004 at 4pm

Amaka,Well I don’t think making Nigeria Airways better was an option. Too much debt and in effect the company had to be liquidated. Making NA better will have involved paying off all those debts - not exactly a great proposition to any investor.

scopey — October 11th, 2004 at 2am

Nah wah ooo! i guess i speak for the lower class. This country is for sale why can’t you guys smell rats and even cats here.
1)Nigeria is for sale
2)There is somebody behind Branson (one corrupt Nigerian godfather) who is just using Branson.
3)The whole thing is internation/coperate/local
and government fraud (419)
Prove me wrong in a year time
I go the wait here with my countrymen/women

Virgin Nigeria CEO resigns December 7th, 2005 at 3pm

Virgin Nigeria CEO resigns
Nevertheless it was very gratifying to learn that Nigerian Airways had been reborn as Virgin Nigeria. A year later, the honeymoon ended with its pioneer CEO, Mr. Simon Harford resigning last week.

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