We don't need a national carrier. Spend the money on providing cheaper jet fuel, 24/7 electricity, enhancing airports, and lending every support (diplomatic and financial) to Arik and several others. A national carrier, given the government's past record, is a sure failure. This would be the 3rd (or is it 4th) attempt to resurrect a dead eagle.

grandstar:


That is what others said until they collapsed.

Where's Virgin Nigeria today? Where's Arik? Airline is not a sentimental business!

You're very correct. It is not about sentiments. Our greatest undoing is the management and maintenance culture.

If Ethiopia, Kenya and South African airlines can be thriving, why can we?

grandstar:


That is what others said until they collapsed.

Where's Virgin Nigeria today? Where's Arik? Airline is not a sentimental business!

Even if it ran at a loss in the beginning, it still has a value.

mapet:


let me help you sir........

so @bigpicture001,

1. Nigeria signed a BASA agreement with other countries (US, UK, South Africa, Ethiopia etc) that allows them to direct flight to our country and back.....same for us. While these countries sufficiently utilizes their quota, we hardly. Is it not good if govt backed-private partnership National carrier come to take up the quota that the likes of Arik et al have failed to do?

2. We run a sub-par local air travels. Is it not good if govt backed-private partnership National carrier come into the local scene and boost the business in that regard?

3. Consider the "robbery-rates" these foreign airlines charges us, especially in summer simply because there is no alternative........

4. Consider what this national carrier will do to us on the soft side - our Image, our pride, our reach, the ability to further develop our aviation industries, Air connectivity to states etc

Thank you bro. Well said.

Olalekank:
This is good development. Air peace, aric and all be forming boss.

And you think the National Carrier will kill air peace

mapet:


d.a.f.t... question

Daft answer. xtreemly Ignorant and ill exposed

mapet:


let me help you sir........

so @bigpicture001,

1. Nigeria signed a BASA agreement with other countries (US, UK, South Africa, Ethiopia etc) that allows them to direct flight to our country and back.....same for us. While these countries sufficiently utilizes their quota, we hardly. Is it not good if govt backed-private partnership National carrier come to take up the quota that the likes of Arik et al have failed to do?

2. We run a sub-par local air travels. Is it not good if govt backed-private partnership National carrier come into the local scene and boost the business in that regard?

3. Consider the "robbery-rates" these foreign airlines charges us, especially in summer simply because there is no alternative........

4. Consider what this national carrier will do to us on the soft side - our Image, our pride, our reach, the ability to further develop our aviation industries, Air connectivity to states etc

So you think 9ja Airways is all of a sudden going to slash cost to Lagos.
As we speak my flight tkt from London to PHC was £680 for the month of November, this is Lufthansa a non govt owned Airline. The Airport we have atm can not be even managed to acceptable standards here we see a govt providing another means of embezzlement you lot are here glorifying these people. Go back and check why Richard Branson pulled out of the Virgin Nigeria deal, corruption, they where asking far too much from the man and he did the honourable thing pull out..A country where private Int Airliner do not last more than a year and you think a National Airline will stand. Look we been here B4 with the Virgin Nigeria. It was not any cheaper, we had Belview, same shyte even worse.
We should improve our Airport to allowed more airline land here and establish good competition.

EgunMogaji:


Even if it ran at a loss in the beginning, it still has a value.

bross, we had that with virgin Nigeria. The kind of demand they asked from Sir Richard made him run away. We talking CEO Virgin Atlantic, big fish in this Biz. Corruption made he pull out.

Ijaya123:


You're very correct. It is not about sentiments. Our greatest undoing is the management and maintenance culture.

If Ethiopia, Kenya and South African airlines can be thriving, why can we?

If you check there is a reason behind these airlines you mentioned one word TOURISM.THE USERS are not from these countries, but in our case its a tad different.

erico2k2:

bross, we had that with virgin Nigeria. The kind of demand they asked from Sir Richard made him run away. We talking CEO Virgin Atlantic, big fish in this Biz. Corruption made he pull out.

Different business concept.

Corruption is not new to Niger.

By the way, he’s not a big fish in the airline industry.

erico2k2:

So you think 9ja Airways is all of a sudden going to slash cost to Lagos.
As we speak my flight tkt from London to PHC was £680 for the month of November, this is Lufthansa a non govt owned Airline. The Airport we have atm can not be even managed to acceptable standards here we see a govt providing another means of embezzlement you lot are here glorifying these people. Go back and check why Richard Branson pulled out of the Virgin Nigeria deal, corruption, they where asking far too much from the man and he did the honourable thing pull out..A country where private Int Airliner do not last more than a year and you think a National Airline will stand. Look we been here B4 with the Virgin Nigeria. It was not any cheaper, we had Belview, same shyte even worse.
We should improve our Airport to allowed more airline land here and establish good competition.

I am afraid you just started a flawed and not well articulated assertions.

1. I never said the national carrier will slash cost. It only makes logical sense that when a big competition comes into the market, relative-lower pricing is one of the "attack-strategies" to capture market share. Pls I am less interested in your isolated and no-context related Lufthansa flight ticket, I am interested in the fact that we have a BASA quota that is currently "enjoying" ZERO utilization. Competition you say, what is competition when the game is tilted almost 100% in favour of foreign owned airlines.

2. On the state of the Airport, the logic is that the development of the business of a National Carrier is holistic. You said The Airport we have cannot be managed to acceptable standard....I guess you're bling to the fact that concerted effort are being made on our airports, especially the international ones. Are you aware of the some of the interventions of the VPs office to stimulate improvements in our airports because of ease of doing business. People like you just complains without profering any solution. Let's say atm our airports are bad. What did you submit to be done?

3. If you are truly familiar with the Virgin's story, and you had proper understanding, then you will know that was not a national carrier but a fake contraption/SPV to push business OBJ-Branson's personal business. What was government stake in that entity compared to what govt got in the deal? How did VirginNigeria develop our local aviation business or take our brand international?........You people just form opinion based on preconcived and lazy "Nigeria killed it" narrative.......but let me not bore you with my personal misgivings on that OBJ's fake deal. Read the investigative report on that deal below

OBJ/Branson’s Virgin Nigeria: (2004) – Our Failed Attempts

Conceived by President Obasanjo and the CEO of the Virgin Group, Richard Branson in 2004, Virgin Nigeria was the 7th attempt to float a replacement national carrier for the liquidated Nigeria Airways. After the theatrical Villa presentation of the miniature aircraft bearing the insigma of Virgin Nigeria by OBJ and Branson, the Memorandum of Mutual Understanding (MOMU) was signed and the concept formally came into being September, 2004. However, it was not until July 2005 that the airline commenced operations. To facilitate the operation of Virgin Nigeria, the government agreed to terms that stunned all discerning Nigerian aviation professionals and even the global aviation industry. Under the terms, the Virgin Group led by Branson was given a free hand to design and determine the structure of the airline even when its equity was to be 49% against Nigeria’s 51%. The Group had the right to lease all aircraft, manage the airline, determine the roadmap, the routes and its focus. Also Branson’s Virgin Nigeria was given the right to all Nigeria’s 64 BASA then and first option of choice on any new BASA. In addition, Virgin Nigeria would operate all its domestic flights from the international terminal of MMA where the “E” Wing was redesigned for Virgin Nigeria. The objective was to facilitate easy transfer of Virgin Nigeria passengers booked for international flights onto Virgin Atlantic; the Group’s flagship in which Nigeria had no interest. Although, the then Aviation Minister – Isa Yuguda, had taken responsibility and had dragged Rewane of Financial Derivatives as Financial Advisor into it, all the planning processes were entirely the affair of Branson and his Virgin Group. There was no Board, the entire Management was drawn from the Virgin Group, emoluments were fixed by the Group and the only Nigerian brought into the Management on a façade was Larry Agose, one of the best Public Relations Professionals that ran Nigeria Breweries public relations. But until then, he had no exposure in aviation. It is also true that UBA was both the Airline’s Banker and a Co-investor; the bank had no scintilla of knowledge on airline matters and therefore had no input in the direction of the airline. The Ohiwere-led Board was a development that came after all major decisions had been taken for commencement of operations. The entire industry from AON, groups and individual professionals protested the embarrassing anti-patriotic terms given to Branson to no avail. Even letters written to the President received very non-positive responses. One such response which came from Profession Ahionbare, Special Assistant to the President, stated inter alia, “I assure you we will do what is in the best interest of Nigeria.” An aviation activist, Capt Jerry Agbeyegbe went to court, seeking to stop Virgin Nigeria, but four days to the case coming up, Agbeyegbe was murdered in cold blood, a murder that remains, unexplained and unsung till date. In spite of all these, the airline commenced operations July 2005 around its strategic plan to be a feeder/distributor of passengers to Virgin Atlantic as well as an instrument to combat British Airways dominance in Nigeria. The airline built one of the best infrastructures for airline operations and easily achieved dominance on the domestic and West Coast routes where it was easily the first choice airline. But in keeping with its roadmap, in spite of the government’s pressures to operate international routes which it had no intentions to do, the Virgin Group though, started flights to London, Dubai and Johannesburg, it ensured that these routes were shoddily operated with a rickety B767 as against the modern A330 it was using for Virgin Atlantic. Again, in the case of London, it transferred Virgin Nigeria flights from Heathrow to Gatwick which was second rate to Heathrow. Thus, the Virgin Group deliberately created conditions for poor patronage, poor revenue and operational losses, all of which it used as alibi to pull out from all the routes pleading loss-making. It is informative to recall that Virgin America floated by Branson made a loss of US$250million between 2007 and 2009 in its first 2 years, yet it continued and now thrives. Right from the first year of operation, Virgin Nigeria went into heavy borrowing from its bankers – UBA. This was predicted as the start-up fund, was paltry and was irresponsibly used by the Virgin Group managers of the airline. Between December 2005 and March 2006, UBA approved a four-month bridging loan of US$20miilion as working capital, financing and aircraft guarantee. This was followed with another US$40million in 2006 and yet another US$100million zero coupon bond issue. There is also the US$100million facility from Cairo-based AFREXIM Bank, obtained by UBA ostensibly on behalf of the airline. When the burden of debt became excessive to UBA, the Virgin Group managers sought a facility of US$15miilion from GTB in a manner that was so unethical and unbecoming of a Group whose global perception is that of a bench-marker. As at the time that the Virgin Group sought the facility, all the assets of Virgin Nigeria were encumbered in an unperfected “All Asset Debenture” instrument held by its bankers – UBA as security for the US$200million loans it granted the airline. The Virgin Group managers of the airline, not only concealed this fact from GTB, but presented some of the same encumbered assets to the bank as collateral for the US$15million facility. Immediately the facility was granted, UBA perfected the “All Asset Debenture”, which included uncalled capital, thus rendering GTB’s US$15million absolutely unsecured. This criminal act of deliberate concealment, never experienced before in the banking history, and perpetrated by an otherwise perceptively reputable foreign investor-group, left GTB no option than to head to the court to force payment. The US$15million is today part of the unsecured N35billion debt stock of Virgin Nigeria held by AMCON, which Nigerian tax payers have to liquidate. However, more contributory to the indebtedness and eventual failure of Virgin Nigeria were the lease terms of the aircraft the Virgin Group acquired for the airline’s operation, particularly the seven Boeing 737s. From records available, the lease terms were inexplicably at variance with all known global standards and even the Virgin Groups standard. Against global standards of 3 years lease tenure, Virgin Nigeria leased for 5 years. Against global standard of monthly lease term of 120 block hours, Virgin Nigeria’s was 200 block hours even when actual utilization was between 100 and 130 block hours monthly. Yet, the unutilized hours ranging between 70 and 100 block hours were paid for even when the aircraft were out of service due technical (AOG). Further investigations showed that as against the standard monthly lease rate of US$125,000, the Virgin Group managers paid US$181,000 in addition to US$151,000 monthly maintenance reserve, bringing the total monthly expenditure for each of the seven B737s to US$332,000. Thus, annual payment for each aircraft came to US$3,984,000 and US$19,920,000 for 5 years tenure per aircraft and US$139,440,000 for the seven B737s for the 5-year tenure. Adams Oshiomhole Industry projection is that Nigeria lost over US$60million to this murky lease arrangement; an amount that became part of the N35billion debt of the airline. By 2007/2008, the Virgin Group had started complaining of its “loss-making” Nigerian venture. Consequently, it took a decision to exit having seen the imminent collapse of the airline it ran. UBA Capital had planned an IPO, which it projected would fetch them US$450million but the then Board led by Mr. Ohiwere saw through the “hidden agenda” in the plan, headed to court and botched the IPO. The Virgin Nigeria got its bankers to arrange a 2-year convertible bond of US$100,000. Once the sum was available, UBA took US$20million upfront as interest and charges, the Virgin Group took US$35million (US$24m+US$11m, ostensibly to cover respectively its equity contribution for its 49% stake in the airline and for brand royalty fee for Virgin Nigeria’s use of its brand). The Group claimed it was for lease rental payment. Once Virgin Group took this money, having more than recovered its investment, it withdrew from Virgin Nigeria, recalled the entire Management, all of whom were the Group’s staff (CEO, Conrad Clifford on June 18, 2009 and others on July 4, 2009) and demanded, under a threat of litigation that its brand be immediately taken off from the airline. This exit left the entire burden of the airline on UBA which provided all the funding with the exception of the US$15million from GTB. The irrefragable fact is that, no matter the Virgin Group pretences, they ran the airline aground; collapsed it and left unscathed. Thus, Virgin Nigeria, which the then President, OBJ, presented to Nigerians as in the best interest of our nation; an airline which the CEO, Conrad Clifford told the National Assembly in 2008 that by 2010, would acquire 40 aircraft and employ 6000 Nigerians collapsed, leaving an operational debt of N35.5billion in three years; an operational debt profile which Nigeria Airways did not incur in the last 10years (1992-2002) to its unfortunate liquidation. Worst still, the Virgin Group left without adding any value to the industry, no trained manpower, no assets; aircraft or structures. The airline left us with so many lessons; it was a victim of low capitalization, well masterminded immediate returns to the Virgin Group, incredible faulty financial engineering based on quick gain aspirations, internal stakeholder-wrangling and distrust, continuous non-application of due diligence in all deals, deception bothering on fraud, high profile impunity and opacity as well as utter disregard for indigenous professional patriotic advice. In all, it is a classic lesson of how not to hand over our patrimony, without a national oversight, to a foreign investor whose ulterior interest is not known. In fact, Virgin Nigeria was not a national carrier by its equity structure, as claimed by its owners but a private Nigerian flag carrier put together by a two-some with a foreign investor and a façade of involvement of some selected few. It was an appropriation of our common wealth, simpliciter.

Read more at: https://www.vanguardngr.com/2015/08/national-carrier-how-nigeria-fell-to-grand-deception/

EgunMogaji:


Different business concept.

Corruption is not new to Niger.

By the way, he’s not a big fish in the airline industry.

In the EU he is though . The virgin brand is massive .

erico2k2:

In the EU he is though . The virgin brand is massive .

Virgin brand as a whole maybe, but not the airline by itself.

EgunMogaji:


Virgin brand as a whole maybe, but not the airline by itself.

In the EU they are . They are amongst the fee who fly direct frm here to Oz non stop .

erico2k2:

In the EU they are . They are amongst the fee who fly direct frm here to Oz non stop .

No they’re not.

It’s not by noise, chairman’s daring feats or brand posture

I’m an aviation buff and didn’t even have to do research to know.

https://en.m.wikipedia.org/wiki/List_of_largest_airlines_in_Europe

Virgin “Airline” is not even in the top 20.

Alejoc:
Pls don't hesitate to bring in private handlers too....civik servant are incapable of handling anything this big in the present day Nigeria.... Maybe when we have death penalty for corrupt officials, things can change then

That is my position. Unless senior civil servants are tried and convicted for most embezzlement, those crimes will continue unabated.

bakila:

That is my position. Unless senior civil servants are tried and convicted for most embezzlement, those crimes will continue unabated.

Or vigilantes just dispatch them onward on their own.

If you ask me, I'd had suggested we invite Qatar airways to take over our BASA license and fly all the routes paying royalty to the govt for an initial period of 5 years.

We do need an airline that will serve as our National carrier.

We are always in a hurry to achieve nothing.

We are always in a hurry to achieve nothing. 2019 is too close na

Truth234:
The Minister of State for Aviation, Sen. Hadi Sirika, has disclosed that the Federal Government had started negotiations with aircraft manufacturers and investors towards the unveiling of the national carrier at the ongoing Farnborough International Air Show in the United Kingdom.

Sirika disclosed this in a statement by Mr James Odaudu, Deputy Director, Media and Public Affairs from Farnborough on Monday.

He said that the Nigerian delegation which he led, had met with the Management of Airplane manufacturers Airbus to negotiate the acquisition of the desired aircraft for the nation.

Sirika also disclosed that negotiations with Boeing and other Original Equipment Manufacturers (OEMs) would take place on Tuesday.

According to the Minister, the ongoing International Air Show is an opportunity to negotiate with airline manufacturers with the view of getting the most competitive and best value-for-money deals for the country.

He said he would also explore every opportunity available at the air show, an event that brings the biggest and the best in the industry, to attract more prospective investors into the Nigerian aviation environment.

Sirika explained that the show would provide an opportunity to establish a Maintenance Repair and Overhaul (MRO) facility in Nigeria, concession of some airports in the country and other components of the Aviation Roadmap the federal government.

The minister had earlier written on his twitter handle: “Negotiating Aircraft orders with Airbus at Farnborough ahead of National Carrier unveiling on Wednesday.

“Negotiations with Boeing and other OEMs tomorrow.

“Met with Standard Chartered Bank earlier. All is looking good!”

The minister had on July 6, announced that the name and logo of the airline would be unveiled during the air show in the UK and assured that the airline would commence operations in December.

http://investorsking.com/national-carrier-sirika-meets-aircraft-manufacturers-investors-uk/

Beating about the jungle if there is any bush at all sf. As usual, these "honest" politicians will always find a project to siphon funds from the Federal Government and Federation account.

Giving a civil servant and a politician to manage this behemoth is like keeping your vegetables in the care of goats.

RIP to Nigeria Airways

RIP to Virgin Nigeria

This one will also die naturally like its predecessors with planes vanishing into thin air and assets ending up in the hands of ivil servants and politicians alike.

I am always pessimistic about anything concerning Nigeria.. This would definitely fail as everything in this country continues to fail. Is it the same Nigeria where almost all her citizens are criminals that can manage it well or another? Which Nigerian is honest sef? Pfft

THE SERIOUS MINDED MINISTER... KUDOS TO YOU,SIR........ KEEP EXPLORING..... AND MAY GOD BE WITH AS YOU EXPLORE.... A SQUARE PEG IN A SQUARE HOLE..

Truth234:
The Minister of State for Aviation, Sen. Hadi Sirika, has disclosed that the Federal Government had started negotiations with aircraft manufacturers and investors towards the unveiling of the national carrier at the ongoing Farnborough International Air Show in the United Kingdom.

Sirika disclosed this in a statement by Mr James Odaudu, Deputy Director, Media and Public Affairs from Farnborough on Monday.

He said that the Nigerian delegation which he led, had met with the Management of Airplane manufacturers Airbus to negotiate the acquisition of the desired aircraft for the nation.

Sirika also disclosed that negotiations with Boeing and other Original Equipment Manufacturers (OEMs) would take place on Tuesday.

According to the Minister, the ongoing International Air Show is an opportunity to negotiate with airline manufacturers with the view of getting the most competitive and best value-for-money deals for the country.

He said he would also explore every opportunity available at the air show, an event that brings the biggest and the best in the industry, to attract more prospective investors into the Nigerian aviation environment.

Sirika explained that the show would provide an opportunity to establish a Maintenance Repair and Overhaul (MRO) facility in Nigeria, concession of some airports in the country and other components of the Aviation Roadmap the federal government.

The minister had earlier written on his twitter handle: “Negotiating Aircraft orders with Airbus at Farnborough ahead of National Carrier unveiling on Wednesday.

“Negotiations with Boeing and other OEMs tomorrow.

“Met with Standard Chartered Bank earlier. All is looking good!”

The minister had on July 6, announced that the name and logo of the airline would be unveiled during the air show in the UK and assured that the airline would commence operations in December.

http://investorsking.com/national-carrier-sirika-meets-aircraft-manufacturers-investors-uk/