Two Nigerian airlines to operate U.S. route
Thread Starter
Join Date: Oct 2005
Location: DXB
Posts: 267
Likes: 0
Received 0 Likes
on
0 Posts
Virgin Nigeria May Protest Designation of Bellview, Others
from thisday:
There are indications that Virgin Nigeria Airways (VNA) may protest the designation of some domestic airlines on some of the international routes exclusively reserved for it by the Federal Government to attract investment into the airline.
In the Memorandum of Mutual Understanding (MEMU) in 2004 between the airline's core investor, Virgin Atlantic Airways (VAA) and the Federal Government, the New York, London, Dubai, Jeddah and Johannesburg routes had been exclusively reserved for seven and half years for Virgin Nigeria.
However, the Federal Government had about two weeks ago reportedly designated start-up airline, Arik Air, Bellview Airlines and Aero Contractors on some of the reserved routes.
THISDAY gathered from a Ministry of aviation source at the venue of the just concluded aviation conference in Dakar, Senegal that officials of the airline may formally protest the breach of the MEMU, just one year after the carrier commenced operations.
The source noted that government's decision to designate the airlines is indeed unsettling the airline's investors, many of whom were said to have been compelled to invest in the carrier largely because of the seven and half years exclusive right to the routes. Some of the investors, who are institutional investors, are said to be worried that government's action may indeed be a disincentive to investors in future if agreements reached are violated with impunity.
Although British entrepreneur, Sir Richard Branson whose Virgin Atlantic Airways is the core investor with 49 per cent equity in Virgin Nigeria is not known to have formally made any public comment on the Federal Government's stand, it is believed that he may make his position known soon.
It is however recalled that the route reservation policy did not get the blessing of the National Assembly when the airline was about to be set up but the Federal Government through the former Aviation Minister, Mallam Isa Yuguda went ahead with its inclusion in the MEMU that snowballed into the birth of Virgin Nigeria.
Since his assumption of office, the incumbent minister, Dr.Babalola Borishade has not hidden his resolve to jettison all policies that do not favour not only the country but domestic airlines.
To give practical _expression to that resolve, the government last month cancelled the three additional frequencies given to British Airways last year.
It was however gathered that in the case of Virgin Nigeria, Borishade had repeatedly assured that the government would keep its part of the agreement with the investors vis-a-vis route reservation.
In the MEMU, the government had undertaken " that as long as VAL remains the Strategic Investor in and/or VAA remains the Technical Partner to the Airline,it will designate the airline as flag carrier with the full benefit and advantages of such statuson the prime routes for which it has the right of first refusal to operate the available frequencies.
The prime routes referred to are: London, New York, Jeddah, Dubai and
Johannesburg; grant the Airline the right to operate,exclusively out of Nigeria in respect of the above prime routes for a period of seven years and six months from the date of commencement of the Airline's flight operations..."
There are indications that Virgin Nigeria Airways (VNA) may protest the designation of some domestic airlines on some of the international routes exclusively reserved for it by the Federal Government to attract investment into the airline.
In the Memorandum of Mutual Understanding (MEMU) in 2004 between the airline's core investor, Virgin Atlantic Airways (VAA) and the Federal Government, the New York, London, Dubai, Jeddah and Johannesburg routes had been exclusively reserved for seven and half years for Virgin Nigeria.
However, the Federal Government had about two weeks ago reportedly designated start-up airline, Arik Air, Bellview Airlines and Aero Contractors on some of the reserved routes.
THISDAY gathered from a Ministry of aviation source at the venue of the just concluded aviation conference in Dakar, Senegal that officials of the airline may formally protest the breach of the MEMU, just one year after the carrier commenced operations.
The source noted that government's decision to designate the airlines is indeed unsettling the airline's investors, many of whom were said to have been compelled to invest in the carrier largely because of the seven and half years exclusive right to the routes. Some of the investors, who are institutional investors, are said to be worried that government's action may indeed be a disincentive to investors in future if agreements reached are violated with impunity.
Although British entrepreneur, Sir Richard Branson whose Virgin Atlantic Airways is the core investor with 49 per cent equity in Virgin Nigeria is not known to have formally made any public comment on the Federal Government's stand, it is believed that he may make his position known soon.
It is however recalled that the route reservation policy did not get the blessing of the National Assembly when the airline was about to be set up but the Federal Government through the former Aviation Minister, Mallam Isa Yuguda went ahead with its inclusion in the MEMU that snowballed into the birth of Virgin Nigeria.
Since his assumption of office, the incumbent minister, Dr.Babalola Borishade has not hidden his resolve to jettison all policies that do not favour not only the country but domestic airlines.
To give practical _expression to that resolve, the government last month cancelled the three additional frequencies given to British Airways last year.
It was however gathered that in the case of Virgin Nigeria, Borishade had repeatedly assured that the government would keep its part of the agreement with the investors vis-a-vis route reservation.
In the MEMU, the government had undertaken " that as long as VAL remains the Strategic Investor in and/or VAA remains the Technical Partner to the Airline,it will designate the airline as flag carrier with the full benefit and advantages of such statuson the prime routes for which it has the right of first refusal to operate the available frequencies.
The prime routes referred to are: London, New York, Jeddah, Dubai and
Johannesburg; grant the Airline the right to operate,exclusively out of Nigeria in respect of the above prime routes for a period of seven years and six months from the date of commencement of the Airline's flight operations..."
Join Date: Aug 2006
Location: United Kingdom
Posts: 212
Likes: 0
Received 0 Likes
on
0 Posts
I just hope that these newly designated airlines,use proven Indigenous aviation security services providers that already operate within Nigeria,and have been making quite a name for themselves.
Airlines like British airways,South african Airways and Iberia have,and are amongst the best guarded and security screened airlines operating out of Nigeria.
Where they incurr immigrational fines,and penalties for non compliance especially in the USA by customs,it could make the route unprofitable for them.
I look forward to seeing if Arik and Aero contractors will follow the steps of Bellview and Virgin Nigeria,or heed my advise.
Airlines like British airways,South african Airways and Iberia have,and are amongst the best guarded and security screened airlines operating out of Nigeria.
Where they incurr immigrational fines,and penalties for non compliance especially in the USA by customs,it could make the route unprofitable for them.
I look forward to seeing if Arik and Aero contractors will follow the steps of Bellview and Virgin Nigeria,or heed my advise.
Join Date: Mar 2001
Location: Moving along
Posts: 102
Likes: 0
Received 0 Likes
on
0 Posts
I could be interested in joining Virgin Nigeria for their long haul operations when the hiring resumes again if ever, but what kind of future holds for them if they are never granted routes to North America?
Where could I get info on their terms and conditions for the a340 drivers at the moment and the life style in Lagos for expats and so on?
Thanks in advance!
Where could I get info on their terms and conditions for the a340 drivers at the moment and the life style in Lagos for expats and so on?
Thanks in advance!
Feasant Plucker
Join Date: Feb 2001
Location: In the lair of the Penguin......
Posts: 113
Likes: 0
Received 0 Likes
on
0 Posts
Daily Champion (Lagos)
August 8, 2006
Posted to the web August 8, 2006
Felix Nwaneri
Lagos
OFFICIALS of the Federal Ministry of Aviation are still maintaining sealed lips over the alleged breach of the Memorandum of Mutual Undertaking (MMU) signed between the ministry and the country's new flag carrier, Virgin Nigeria Airways.
Aviation Ministry, it would be recalled recently designated two domestic carriers, Arik Air and Bellview Airlines on routes exclusively reserved for Virgin Nigeria.
According to the MMU signed between the Federal Government and Virgin Atlantic Airways of United Kingdom (UK), technical and strategic partners of the airline in 2004, both parties agreed that Virgin Nigeria will be designated as the country's flag carrier with full benefits and advantages of such status.
Specifically, Section A(i) of the 11-page document stated: "The FGN (Federal Government of Nigeria) undertakes, that as long as Virgin Atlantic Limited, (VAL) remains the strategic investor in and/or Virgin Atlantic Airways (VAA) remains the technical partner for the airline, it will designate the airline as a flag carrier with the full benefits and advantages of such status on the prime routes for it has the right of first refusal to operate the available frequencies."
The prime routes referred to are: London, New York, Jeddah, Dubai and Johannesburg.
Virgin Nigeria was also granted the right to operate exclusively out of Nigeria in respect of the prime routes for a period of seven and half years from the date of commencement of its flight operations.However, the recent designation of the two domestic carriers have been described by industry experts as a breach of the 2004 MMU signed by both parties even as Airline Operators of Nigeria (AON) faulted it, insisting that due process was not followed.
Secretary-General of AON, Capt. Mohammed Joji, who reacted to the development recently, insisted that Arik Air unlike Bellview is a start-up airline and should not have been designated on the Lagos-London or Lagos-U.S. routes.
According to him, the airline is required by international aviation regulations to operate on the domestic routes for at least two years before it could be designated on the regional or intercontinental routes.
August 8, 2006
Posted to the web August 8, 2006
Felix Nwaneri
Lagos
OFFICIALS of the Federal Ministry of Aviation are still maintaining sealed lips over the alleged breach of the Memorandum of Mutual Undertaking (MMU) signed between the ministry and the country's new flag carrier, Virgin Nigeria Airways.
Aviation Ministry, it would be recalled recently designated two domestic carriers, Arik Air and Bellview Airlines on routes exclusively reserved for Virgin Nigeria.
According to the MMU signed between the Federal Government and Virgin Atlantic Airways of United Kingdom (UK), technical and strategic partners of the airline in 2004, both parties agreed that Virgin Nigeria will be designated as the country's flag carrier with full benefits and advantages of such status.
Specifically, Section A(i) of the 11-page document stated: "The FGN (Federal Government of Nigeria) undertakes, that as long as Virgin Atlantic Limited, (VAL) remains the strategic investor in and/or Virgin Atlantic Airways (VAA) remains the technical partner for the airline, it will designate the airline as a flag carrier with the full benefits and advantages of such status on the prime routes for it has the right of first refusal to operate the available frequencies."
The prime routes referred to are: London, New York, Jeddah, Dubai and Johannesburg.
Virgin Nigeria was also granted the right to operate exclusively out of Nigeria in respect of the prime routes for a period of seven and half years from the date of commencement of its flight operations.However, the recent designation of the two domestic carriers have been described by industry experts as a breach of the 2004 MMU signed by both parties even as Airline Operators of Nigeria (AON) faulted it, insisting that due process was not followed.
Secretary-General of AON, Capt. Mohammed Joji, who reacted to the development recently, insisted that Arik Air unlike Bellview is a start-up airline and should not have been designated on the Lagos-London or Lagos-U.S. routes.
According to him, the airline is required by international aviation regulations to operate on the domestic routes for at least two years before it could be designated on the regional or intercontinental routes.
