|
BNW |
|
B N W: Biafra Nigeria World News |
|
|
|
|
||||
|
|
|
|||||||||||||||||||||||||||||
|
Virgin Nigeria takes off next year
WITH the signing of a Memorandum of Mutual Understanding (MMU) between the Federal Government and Virgin Atlantic Airways, Nigeria is now set to boast of a new national carrier.
Under the deal, Virgin Atlantic, a British airline, will serve as the strategic investor and technical partner of the emerging flag carrier.
The ceremony held at NICON Hilton Hotel, Abuja, also offered the Aviation Minister, Mallam Isa Yuguda and Sir Richard Branson, the British billionaire owner of Virgin, the platform to justify the deal which has been trailed by criticisms and condemnations from within and outside Nigeria.
Named Virgin Nigeria, the new flag carrier, according to Branson, will start operations early next year after it has obtained approval and authorisation as against the October 1, 2004 date earlier announced.
The Federal Executive Council (FEC) had on September 1, 2004, approved the appointment of Virgin as the core investor and strategic partner in the new carrier after edging out South African Airways, which had earlier been announced as the preferred bidder for the project.
Virgin will run the new airline with an initial share capital of $50 million or 49 per cent and 51 per cent by Nigerian institutional investors who will later divest half of their shares.
Describing the event as "historical" and a "great day for me", Yuguda said it was the crystalisation of government's efforts at creating a carrier that would be completely private sector-owned and funded.
With him at the signing ceremony were Minister of Works, Seye Ogunlewe and his Communications counterpart, Chief Cornelius Adebayo, the Senior Special Assistant to the President on Aviation, Captain Sheu Iyal and other top government officials.
Branson, who had earlier visited Aso Rock for talks with President Olusegun Obasanjo, said Virgin Nigeria would be built from the scratch.
He also said that the new carrier would be the best in the world.
Both Branson and Yuguda said Virgin Nigeria has nothing to do with Nigeria Airways whose workers are protesting the non-payment of their entitlements, including 18 months salary arrears.
Yuguda said he had no business with Nigeria Airways as it has been transferred to Bureau of Public Enterprises (BPE) but announced that he had taken measures to protect Virgin and other prospective investors in Virgin Nigeria.
His words: "I also signed a letter of indemnity, which is intended to safeguard the investment of the strategic investor, the other Nigerian institutional investors and the Nigerian public (under the Initial Public Offer) against any adverse claim that could result from the activities of the Nigeria Airways Limited (in liquidation) when it was carrying on business as national carrier for Nigeria."
The minister said his efforts to get domestic operators to come together and bid for the new flag carrier failed as the airlines were only angling for the lucrative international routes "even when they apparently lacked the requisite capacities to operate them."
Yuguda, however, did not comment when asked to define "capacity" when the same domestic carriers were recently given traffic rights by the aviation ministry to fly to Rome and Madrid, which are of the same flight distance as London (6 hours 30 minutes) and Bombay with twice the distance (13 hours).
Virgin Nigeria, according to Yuguda, will operate domestic, regional and continental routes.
Virgin Nigeria, he said, would enjoy monopoly out of Nigeria to London, New York, Dubai and Johannesburg as an incentive to the investors during the unspecified teething period.
The prototype of an aircraft in the livery of the new airline was later unveiled.
It features the Nigerian flag and 'Virgin Nigeria' on the body and Virgin logo on the tail.
The new deal has come under acerbic criticisms by aviation stakeholders, groups, students, workers and some international bodies, which described the arrangement as lopsided, against national interest, unfair and fraught with double standard and lack of focus.
The current domination of Virgin on the Lagos-London route, the stakeholders said, would not create a competitive environment that would enable air travellers get the best deal.
Besides, the critics said the government, rather than throwing everything at a foreign carrier, should have taken extra steps to create a level-playing field for indigenous carriers to compete with their foreign counterparts.
Responding to a question, Branson said the government had asked if he would be willing to relinquish 10 per cent shares in Virgin Atlantic Airways, to which he replied: "We would be delighted to have Nigerians invest in Virgin."
|
|
||||||||||||
