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View Full Version : Virgin Nigeria suspends plan to fly US routes


Mr. Smith
29th Sep 2008, 13:50
:eek::uhoh: What other long haul routes could they launch to boost their long haul network? I was looking forward to them launching the US route.

News -- Virgin Nigeria suspends plan to fly US routes (http://odili.net/news/source/2008/sep/27/202.html)

By Yemi Adebowale with agency reports, 09.27.2008
Saturday, September 27, 2008

Virgin Nigeria Airline (VNA) has suspended its plan to fly routes into the United States following what it attributed to the prohibitive price of aviation fuel.

In what many said was a big breakthrough for the open skies agreement between Nigeria and the United States, Virgin Nigeria, Bellview Airline and Arik Airline were in April this year granted approval by the United States Department of Transportation (DOT) to commence direct commercial flights from Lagos to various destinations in the U.S.

While Bellview is expected to service Newark and New Jersey, Arik is expected to operate to Atlanta, Georgia.

“Fuel prices are too high now and we can’t go there until the prices become favourable,” the Chief Executive Officer of the airline, Mr Conrad Clifford said in Lagos.

Conrad said operating the U.S. routes under the “excruciating” fuel prices would not be in the interest of the airline, adding that it might consider flying the route late next year.

In May, Virgin Nigeria's desire to work with North American Airline on the U.S. route suffered a setback when the former pulled out of Nigeria due to rising fuel costs.

The high cost of aviation fuel has in the last couple of months hampered the operations of several airlines worldwide, especially in the US.

In reaction to the impact of high fueling costs, the African Airlines Association (AAA) is considering persuading African counties to embark on regional fuel projects to push down prices on the continent.

For now, Virgin Nigeria, Arik and Bellview Airlines, all of which are designated on the U.S. routes, are still struggling to commence operations, leaving many Nigerian travellers with no option but to fly with foreign carriers.

The rising cost of aviation fuel has continued to bite harder globally. Airlines in Nigeria now expend as much as N320 million on fuel weekly.

Consequently, the Airline Operators of Nigeria (AON) has for a while been seeking audience with President Umaru Yar'Adua with the hope of securing a lifeline “to prevent most of the carriers from closing shops.”

AON Chairman, Dr. Steve Mahonwu, said recently that unless the government did something urgent about the rising cost of fuel, there may be no domestic operations in the country in the next few months, as fuel now accounts for a huge chunk of operational costs relative to slim revenues.

He said airlines could not survive this for much longer, especially as they also have to pay several landing, parking and en route charges that arise out of operations.

Virgin Nigeria had in December 2005, filed an application with the US Department of Transport to provide scheduled passenger air transportation between the United States and Nigeria and vigorously pursued the process for two and half years, before getting the department’s nod in April.

Nigeria is yet to attain the U.S. Federal Aviation Administration (FAA) Category One status that will enable Nigerian- registered aircraft to fly into the U.S.

However, the U.S. Federal Aviation Administration (FAA) granted a waiver to the domestic airlines to lease aircraft from an American-recognised Category One country.

With the acquired aircraft, they were expected to start operations to the United States.

Clifford also announced that Virgin Nigeria was pushing for the allocation of space in Lagos to construct a hangar for its aircraft as it expects to receive deliveries of its orders for a fleet of new Embraer aircraft next week.

The airline recently signed an order for the purchase of 24 aircraft from Embraer, a Brazilian manufacturer. Ahead of the delivery, the airline has changed the outfit of its crew.

Over the next three years, the airline will be spending about N101.4 billion on the purchase of new aircraft from Embraer.

The firm said it intended to acquire 24 new aircraft, which would be in 10 orders to be supplied between September 2008 and 2011.

The order specifies seven Embraer 170 Advanced Range (AR) and three Embraer 190 AR aircraft.

In addition, there are options for six Embraer 190 AR and purchase rights for eight 190 and 195s.

Revnetwork
29th Sep 2008, 14:22
Last time I checked, aviation fuel was $4.40 cents per usg or thereabouts. With the added stipulation that the 3 Nigerian airlines must use wet leased airplanes, there is absolutely no way any of them can make money flying to the US.
Virgin has suspended till at least 2009/10, Bellview might try but I doubt they have the financial muscle and it might actually kill them off. Arik seem to have an endless pot of money with no regard to profitability so I suspect they'll be first to fly to the US.
Good luck to them!