Virgin Nigeria: Why The Rule Of Law Should Prevail
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Capt Daniel Omale
Again, last week, the minister of transport, Mrs Diezani Alison-Madueke, directed the Federal Airports Authority of Nigeria (FAAN) to evict Virgin Nigeria (VN) from its present operational office at the Murtala Mohammed International terminal despite the fact that the matter is in court. This action does not tally with the government’s stance on the rule of law; and in any case, why are we so obsessed with Virgin moving out of the international terminal when more than 60% of the building is grossly under-utilised? Where, again, is this renewed pressure coming from when a court is already interpreting the Memorandum of Mutual Understanding (MOMU), the foundation of VN’s existence in our country? In reality, is VN really the problem or the system? Operationally, VN has been very responsible and, in terms of regulatory compliance, the airline has complied strictly and professionally. So, why so much hostility towards Virgin? Whose interest is actually being protected by coercing VN to move to MM2? Why can’t the minister wait for the wing of justice to take its course. And even if VN loses the case, can MM2 actually take the entire airline’s anticipated fleet?
If the reason for the sudden resurgence to force VN out of MM International Airport is because of security, then we must focus our attention not on the airport alone but also Port Harcourt, Abuja and Kano airports. These airports combine local and international flights from the same terminal building. All domestic flights in and out of Kano, for the past two years, use the international wing since the domestic angle has been under construction. Virgin and Arik airlines operate in and out of the international wing of Nnamdi Azikiwe Airport, Abuja, without a single complaint about security issues. All flights into Port Harcourt operate from one terminal, which is not labeled as either international or domestic wing. Why is the nation weary of security danger at MM Airport alone? If the court has ruled against VN’s claim, then, no one has any further questions to ask; but if the case is still in court, let us trek gently until there is a decision from the court, which every party must obey as part of the rule of law.
I was among those who opposed the hostile takeover of the defunct Nigeria Airways although, technically, former President Obasanjo liquidated Nigeria Airways and single-handedly brought Virgin Nigeria to stand as our national carrier. If the former president had used his super-power to ask Richard Branson to buy out Nigeria Airways, kept the name for the sake of Nigerians and operated under that name, it would have been better. But in hindsight, that decision couldn’t have worked either, because Nigerians, as usual, with our cynical perception on issues, would have tagged it as selling the country’s assets to a foreign firm. In any case, Nigeria is the most difficult country to rule because no one sees any good in any decision, except his or her interest is protected through legal or illegal gains.
Yes, VN arrived with presidential anointment and with opened constricted doors, but what impact has the airline on Nigerians? For those in the industry, if we are to call a spade a spade, there is every reason to applaud VN’s vision and resilience.
Currently, Virgin Nigeria is the only airline recruiting young people as cadet pilots for training abroad. On Virgin’s website, Nigerians are encouraged to apply online for various positions without regard to tribe, religion and state of origin. Our people now occupy managerial positions across the spectrum.
VN has placed order for about twenty Embraer 170 and 190 E-jet series. It is expected to start taking delivery in October this year, and, by this arrangement, VN will require nearly 200 pilots in the next few years. The new drive in the airline is to recruit as many young Nigerians as possible for initial training in the United States. There is a move to encourage VN to train these young people at the Nigerian College of Aviation Technology, Zaria.
Why can’t we look at the positive side of what Virgin is doing in Nigeria as opposed to relocation to MM2? Is VN not paying its dues to the government? Virgin is one of the very few airlines in Nigeria that pays its government-regulated fees and charges. VN pays regularly and promptly to FAAN all fees and charges for the use of the terminal, while members of the AON are constantly in payment default.
Airline operators of Nigeria (AON) have been very critical of Virgin Nigeria’s office location at the Murtala Mohammed International Airport ever since it commenced operations. I do not think this is healthy for the industry. As of today, the only two airlines paying terminal navigational charges to the Nigerian Airspace Management Agency (NAMA) are Virgin Nigeria and Arik airlines. AON members have blatantly refused to accept this fee as part of their responsibilities, although they expect (NAMA) to provide up-to-date navigational, communications and surveillance services to keep the airspace safe. This area of non-payment to NAMA is where the minister critically needs to exert her authority.
AON members are suffering from what psychologists call "learned helplessness" because they lack "internal locust of control" and they are now attributing their woes to Virgin’s existence.
For the nation to take AON seriously, we want to see their contributions to the development of aviation in Nigeria, and we are not talking about how much they keep bickering at Virgin Nigeria or fighting for all the airlines in the country to patronize MM2. To me, AON is constantly attacking either the establishment or VN as opposed to making economic and safety is contributions to the airline business. Does AON still exist or is what we hear a faction of the actual association called "Airline Operators of Nigeria?" When was the last time a member of AON recruited cadet pilots for training in Zaria? When was the last meeting of AON and where was it held? The only airlines helping the industry, as we can see, are Virgin, Aero and Arik. It is highly unfortunate that AON constitute themselves into a nuisance, instead of fighting for ways to keep their business flourishing. Even if Virgin Nigeria moved to MM2 or any other terminal today, there wouldn’t be a significant drop in their load factor.
Airline business is very expensive and requires sound knowledge of aviation with regards to fleet acquisitions, fleet rationalisation, financing and minimising operational costs without compromising safety. Routes choice and operational analysis must be rationally and empirically studied to maximise revenues and ultimately profits, if an airline is to survive. Having easy money to buy aircraft without understanding the core values of the industry has led to the demise of over 20 airlines in Nigeria since 1980, and many more will go down the same way if the trend of over-indulgence on the part of government continues without regard to the rule of law.
Why so much venom against VN? If our government has entered into an agreement with an organisation, we must compel the government to abide by it. The present administration is clamouring for the rule of law; if this is so, we must respect the agreement signed with Virgin Nigeria, whether it was in error or not.
Competition is the name of the game and if VN has found its niche in this complex and volatile industry, it is left for AON members to face the market squarely with strategies for survival instead of trying to pull down a competitor. For those who are crying that VN should pack and move out of the international terminal of MM Airport, there is no law that says that all airlines in Nigeria must patronise MM2, and if such a law exists, it must be repealed immediately so as to foster competition. This is a free market and there must be choices. I hope the highly anticipated rule of law is not truncated before it comes on stream.