ABUJA — FOLLOWING the collapse of the Nigerian Airways and its imminent liquidation, Federal Government yesterday signed a Memorandum Of Understanding (MOU) with Virgin Atlantic Limited to flag off a new national carrier, known as Virgin Nigerian Airline. The beginning of the demise of Nigeria Airways possibly dates to 1979 when with over thirty (30) aircraft in its fleet, it began to lose one craft after another until only one was left. The Minister of Aviation, Mallam Isa Yuguda who signed on behalf of the Federal Government of Nigeria noted that the idea of a new flag carrier is aimed at ensuring an enduring premier flag carrier that would stand the test of time as well as avoiding past pitfalls and other inadequacies that brought the former national carrier to ruin.
“As at the time a decision was taken to liquidate Nigeria Airways, it had acquired all kinds of negative description. The Airline, represented the worst form of public-private partnership due to gross mismanagement, lack of business ethics or any clear entrepreneural vision.”
“With the collapse of Nigeria Airways, it became imperative that a new flag carrier is to be floated, taking precaution to avoid the past pitfalls. This much was revealed in the report of the several panels of inquires that investigated the management and affairs of Nigeria Airways for a period of two decades.”
The Minister noted further that it becomes imperative in view of the global trend towards privatization and economic reforms that the present administration is committed in ensuring that a wholly owned private sector airline is the most viable option for the establishment and development of a flag carrier for the most populous country in sub-Saharan Africa.
Mallam Yuguda however lamented that successive governments in the past have made three unsuccessful attempts at midwifing a flag carrier with the private sector playing the leading role in the Airline.
“Undaunted, we continued to seek and explore for better terms and options for Nigeria under the arrangement. An open and transparent process was followed in the evaluation and election of the winner.”
The Minister revealed that Virgin Atlantic Limited would have 49 per cent equity to the tune of 24.5 million dollars while Nigeria institutional investors and the public through a an eventual Initial Public Offering (IPO) would hold the majority equity of 51 per cent.
Founder and Chairman of the Virgin Group of Companies, Sir Richard Branson who signed on behalf of the company promised that the establishment of the new airline, apart from directly employing several thousands of Nigerians, will further create 20,000 new jobs.
He disclosed that the Airline will have its home base at Murtala Mohammed International Airport, Lagos and will be opening routes as soon as possible to many destinations.
These will include domestic routes such as Abuja, Kano and Port Harcourt; regional routes such as Abidjan, Accra and Dakar, and International destinations such as the Middle East, the USA and Europe. Sir Branson also noted that the new airline will receive specialist expertise and services from Virgin Atlantic.
