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Virgin Nigeria Vs Federal Govt Of Nigeria Et Al

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Old 15th Feb 2008, 10:36
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High Court Ruling 24 March

It looks as if the whole thing will be decided next month as reported in This day today:

Ruling on the application by the federal government, for the discharge of the interim order it made restraining government or its agencies from effecting the relocation order of Virgin Nigeria from the International wing of the Murtala Mohammed Airport, Lagos, to the domestic wing, pending the determination of the suit has been fixed for March 24.
Virgin Nigeria yesterday told the Lagos High court that contrary to the earlier argument of government that the court had no jurisdiction to entertain the matter, that the court has the jurisdiction to hear the matter, notwithstanding the exis.
Virgin Nigeria’s counsel, Mr. Demola Akerele (SAN), contended that the plaintiff has a right to file a matter in court, as the burden was on the defendants to prove the existence of arbitration.
According to him, the court has the jurisdiction to hear the case, contrary to government’s contention, arguing that the federal high court has the jurisdiction by virtue of the 1999 constitution, which confers on it, the jurisdiction to entertain all matters relating to aviation and aircraft as well as matters involving the validity of an executive or administrative act of a federal agency.
“You cannot ask the court to stay proceedings and at the same time, ask the court to determine whether there is a cause of action before the court. If an agent of a disclosed principal has not requested for arbitration, it will not be possible refer such matter to arbitration.
It is trite law that an application asking for arbitration must be supported with an affidavit that the parties are willing and ready to go to arbitration,”he argued.
According to him, “for the application for stay of proceedings to succeed, parties must show at the beginning of the proceeding that they are ready and willing to ensure the success of the arbitration”. He argued that there was no suppression of material facts, as attempts were made to resolve the matter before it was brought to court and that a party most affected by an action has locus standi. According to him, Bicortney would have been joined in the matter, but because the cause of action is a contract between Virgin Nigeria and the federal government, to that extent, it cannot be joined as a party.
Mr. Akerele argued that “for an injunction, the critical issue is that there must be some legal issues to be tried. Even if there is a denial, this cannot be determined at this stage of the proceedings. Plaintiff insist they have a contract, irrespective of what the other party argue and government must act in accordance with the law when issuing directives”. He urged the court to dismiss the application by the federal government.
Justice Ibrahim Auta, had following an ex-parte application by Virgin Nigeria, which had complained to the court that the federal government breached the Memorandum of Mutual Understanding reached between it and government on September 28, 2004, by ordering it to relocate from the international wing of the MMA to the domestic wing, had restrained government from carrying through with its directive.
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Old 15th Feb 2008, 15:42
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Subjudice

DOES MAKING FURTHER COMMENTS ON THIS ISSUE,CONSTITUTE SUBJUDICE?ANYWAY IS IT TRUE THAT WHEN THE MOU WAS SIGNED BETWEEN VK AND FGN; VK WAS YET TO BE DULY REGISTERED AT THE CAC?AS STATED BY THE GOVT LAWYER?SOMETHING ABOUT SEP04 AND DEC04?CAN ANYBODY CONFIRM THIS FACT?OR CONTROVERT IT.IS IT POSSIBLE ,THATS WHAT IS ARMING THE GOVT ET ALL?ALL THE TOUGH TALK...................?

Last edited by jagunmolu; 16th Feb 2008 at 13:19.
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Old 17th Feb 2008, 13:43
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Post Arik Air Moving Out of MMA2

It seems that Virgin are not the only ones not enthusiastic about moving to MMA2, as reported in Friday's Daily Trust:

Arik Air Moves Operations to Old Domestic Terminal

There seems to be more to this than meets the eye as Alex Van Elk has accused Virgin Nigeria of lying about the safety of operations from MMA2 and inferring that the IATA report may have been doctored:

MMA2 Management Faults Virgin Nigeria

It looks as if Lagos is not the only place with problems either as the Minister of State for Aviation, Mr. Felix Hyat declared that the state of the International airport at Port Harcourt is unsatisfactory. He did, however, say that he expected international flights to resume to there fairly soon:

Port Harcourt Airport - FG Deplores State of Facilities
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Old 17th Feb 2008, 15:42
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Jag,
From memory of events at the time, an airline called Eagle?? or something close was used by VAA to bid. This airline was duly registered in Nigeria. Remember there were other airlines in the bidding to run the flag carrier (SAA et al). When Virgin won, the original MOU was signed between Virgin Atlantic Airways and the FGN. When Virgin Nigeria was registered later, it assumed all contractual assets of Eagle?? as I'm sure is stated in it's article of formation. Remember also, that when the 51% Nigerian investors came on board, those articles had to change again to reflect the current ownership structure.
I'm not a lawyer and don't know the significance of this, but it does show that the government haven't got a proper argument if they decided to use the time of registration of VK as their main argument in court rather than argue on the current substative issues which they never did.
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Old 17th Feb 2008, 19:07
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what would you do if you were Richard Branson with recent developments?
Cancel quietly,all plans for fleet expansion.
allow all leases to lapse without plans for renewal.
due to lack of aircrafts gradually phase out most domestic routes.
Continue all international and regional revenue accruing routes until forced out of Nigerian aviation or there is a change in government.
What do you think guys?
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Old 17th Feb 2008, 20:31
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No Offence Taken But?

AVSEC YOUR THOTS SHALL NEVER COME TO PASS,INSHALLAH,TUFIA, WHICH KIND INFERENCE BE DAT?PLS KEEP YOUR DEVILISH INSINUATIONS TO YOURSELF
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Old 17th Feb 2008, 21:32
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what I dont understand is why the minister of state for aviation is being quoted within the electronic media accusing Virgin group management of making untrue statements?
If the quotes are true,then things are not looking good.
This matter is supposed to be in court isnt it?
He should not be commenting until a judgement is given,should he?
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Old 18th Feb 2008, 06:31
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masquerade

We are dealing with a masquerade called FGN see how it just reversed the sale of NITEL/MTEL without any recourse to justice and fairplay, i think we are dealing with a bull in a china shop, pretending to be guided by the RULE OF LAW, thats why vk needs to tread with caution,see ARIK, after all the noise have quietly moved out,the respect for RAMBO is the beginning of wisdom,thes guys dont give a s....it, what happens to anybody as long as they win, as avsec said, is it not subjudice to have HYATT the HUN-Minister still firing salvos daily in the print media?,dis one don pass me o,however we still SIDDON LOOKING,Hoping that common/legal sence might prevail.
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Old 18th Feb 2008, 14:01
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Hi All,

I am new here and was prompted to register and make my contributions after reading all the opinions on the current problems between Virgin Nigeria and the Federal Government and which Bi-Courtney Aviation Services Ltd was dragged into. Straight up let me say , I am not a neutral party. I work for Bi-Courtney and feel that this forum has not properly understood the issues and want to share what I know with you. Obviously you can then make up your minds.

The IATA Report:

Alex Van Elk and Bi-Courtney never said an IATA report didn't exist. What we said from day one is that it is questionable as no audit was conducted at MMA2. We stand by that story. IATA was indeed in Nigeria as a follow up to a 2005 visit. They audited the International terminal. I am no pilot and indeed my knowledge of aviation is quite limited but is it possible for an official audit of an terminal to be conducted with out the knowledge of its operators and regulatory authorities? I don't think so. Secondly, we have reproduced for the public to view and judge for themselves an internal email that was circulated by Virgin Nigeria in September shortly after they visited our terminal. This was before we were operational. During this visit they raised some concerns, all were without basis. Our terminal was designed according to ICAO standards( annex 14) and we told them so at the time. They talked about signage in the terminal, it was in the process of being put up, they asked why our fire extinguishers didn't have servicebility tags, we told them, they are new and their first service was not due until next year and on and on it went. This internal email was verbatim and I mean word for word the same as the IATA report section dealing with MMA2 . Now please forgive if we cry fraud when an email circulated in September is reproduced in an IATA audit report produced in November based on an audit that never occured. We don't know the game IATA is playing but we have choosen to respect the NCAA authorities who assure us they will get to the bottom of the matter.

We obviously don't have the same clout as Virgin Atlantic, but I can bet you that you have not heard the last of this IATA report because it is quite questionable.

CAPACITY

Bi-Courtney never claimed that it had enough capacity to park all flightrs on its apron. It was for this reason it entered into negotiations with the authorities to make use of the apron in the adjoining GAT terminal. Indeed before the Federal Government issued an unltimatum to the two airlines , Bi-Courtney using its own resources had cleared old aircraft that were previously on this apron and moved them to another parking space that it built. The same statement which announced the ultimatum also announced the agreement enabling Bi-Courtney to use the GAT apron for added capacity. It baffles my mind why people choose to follow closely one part of a story while refusing to pay attention to other parts of it.

Virgin Nigeria has its reasons for not wanting to relocating, they are all economic, they are making loses , are indebted to FAAN and operating out of MMA2 will take away the advantages they have over other local airlines. It was not too long ago that Virgin Atlantic went to war with British Airways over monopolistic tendencies. What it refused to accept in Britain it wants to do in Nigeria. Haba.

I noticed somebody said they saw the MOU and its cast iron, Sir , I suggest you show it to a lawyer and ask for their opinion. There is nothing cast iron in the document I saw. However I won't comment further on this because frankly this issue has nothing to do with Bi-Courtney. It is between Nigeria's government and Virgin Nigeria. Had they done the honourable thing and pursued this purely in court, we would not have joined issues with them. Afterall they are potential customers. When they decided to use emotional blackmail on ordinary NIgerians who have suffered terribly as a result of aircrashes in the country and in the process disparaging our good name, we had to reply. Incidently , I don't know of any airline crash that happenned in a Nigerian terminal.

Lastly let me say, at the moment in Nigeria, there is no terminal like MMA2, including International terminals. It is ironic that Virgin Nigeria that willingly uses terminals like Yola , Maiduguri and Owerri that are at best only half as good as MMA2 wants to talk about safety. Please read beyond the headlines and ask yourself why the most audited airline in the history of Nigeria, Aero, the choosen airline by multi-nationals and embassies is happy to be in MMA2 ? You think Aero don't care about their passengers safety?

Bi-Courtney is a local Nigerian company that is proud of what it has achieved at MMA2. It will continue to pioneer developments in aviation, in Nigeria by Nigerians. It will continue to protect its rights to make a decent return on its investment thereby encouraging other investors to come and make a difference to infrastructural development in the country.
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Old 18th Feb 2008, 18:07
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Indeed -with the Hyat man running the ministry show now, the days of Babalola Borishade and Yuguda seam like sweet memories
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Old 19th Feb 2008, 09:42
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Kadaria firstly thank you for being honest about your lack of experience in aviation. It does show in some parts of your posting

Also you are up front about your partisanship for Bi Courtney. I have worked with Virgin Nigeria in the past, no longer alas, and was around at the birth of the airline. It cannot be contested that Vigin Nigeria were given the right to build their operation as a hub out of MMIA by the Nigerian Government. Based on this approval the long term plan for the airline was made. This approval was given with full knowledge by the Nigerian Government of the plans for the new domestic terminal, yet no mention was made for any eventual relocation.

Whether any other airline thinks this was right or wrong is immaterial, the approval was given and VK spent considerable sums constructing a modern, efficient domestic departure lounge and gates, business lounge, gate system, plus establishing it's operations base in derelict areas of the terminal that were the home to many rodents.

The plans for MMA2 went ahead without making any reasonable provision for the existing number of flights expected to operate through there in peak times, let alone any significant increase. VK was not expected to be part of this plan until I think it was Boris the Shady came to power, when he started to make noises. By then I was working elsewhere so I will let others comment more closely.

You suggest that VK's reluctance to move is purely financial, and that is the comment which underlines your severe lack of experience and comprehension of the operational issues involved in running a hub operation. The adverse effect on the logistics are a major factor in any opposition to the move. I believe that the major driver for Bi Courtney getting the airlines to move to MMA2 is financial debt repayment, so if it is wrong for VK it is also wrong for Bi Courtney!

You also seem to think that airline safety is solely down to aircraft crashes.

When they decided to use emotional blackmail on ordinary NIgerians who have suffered terribly as a result of aircrashes in the country and in the process disparaging our good name, we had to reply. Incidently , I don't know of any airline crash that happenned in a Nigerian terminal.
and this again underlines your lack of operational experience. Ground safety is a major issue at all airports, and congestion on the ramp is one of the major areas, especially where you have passengers walking in the same areas that service vehicles are being driven, aircraft are powering off stand with the issue of jet blast, propwash etc. Bad enough during the day but the risks escalate significantly at night.

Pax out in the torrential rains that occur will seek shelter anywhere, and they do not have the knowledge base to know where is safe or not.

I am also very surprised that a company such as Bi Courtney which trumpets itself as being experienced and a market leader in Airport development didn't understand the nature of the VK operation and make plans, with VK, to alleviate the problems that the move would cause. This is either negligence on their part, or perhaps it is the work of others behind the scenes who wish to hamper the VK operation as much as possible. I used to think that the BAA was high handed, but Bi Courtney beat them hands down.
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Old 19th Feb 2008, 12:10
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correct me if I am wrong,but the crash in PHC,does that count as a crash within a Nigerian terminal or not?
Kadaira,enough respect for being honest on this forum as to your bias.That is very honourable.
As an employee of an investor company within Africa,I must warn you that this battle between FGN and VK with apparent favour for bicourtney does not make non nigerian investors comfortable.
However this ends will affect FDI within Nigeria in the future,particularly the aviation sector.
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Old 19th Feb 2008, 12:41
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quick question kadaria,this are the departures out of lagos in the morning 7-8ish

arik abv 737
aero abv 737
vk abv/737 or 767
chachangi abv 737 or 727
bellview abv 737
arik phc crj/737
aero phc 737
vk phc 737
chachangi phc/owr 737
vk ph military F50
arik ph military F50 or DASH8
arik calabar CRJ
arik osubi F50/DASH8
aero osubi DASH8
aero benin DASH8
vk osubi(IN MARCH) F50
bellview 737 phc(coming soon)
vk calabar 737
vk benin(coming soon) F50

1.pls tell me when you add you parking area at MMA2 plus GAT can you accomodate all this?(remember vk uses 767 on demand to abuja)
do you have enough buses to shuttle for all this flights simantanesouly?
2.why have arik moved to GAT?
3.what is the path to shuttle the pax from MMA2 TO GAT and the distance from the taxi way?
4.how long will it take?
5.do you know the meaning of a hub? pls fly BA to manchester from lagos,and come back and tell us what happened out of heathrow to manchester leg as regards transfer!
i hope you can answer all this questions
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Old 19th Feb 2008, 12:48
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finally kadaria every airline owes FAAN!
I am also willing to place a bet that if you tell AERO today you have the option of moving from MMA2 to any terminal,that you dont necessarily have to be in MMA2........................................................ ..............osh in seconds
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Old 19th Feb 2008, 15:00
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Kadaria I Have Question /scenarios For You.

I Am Arriving With Vk Into Mma2 And Connecting With Vk Or Ba To Lhr @ Mmia. Do You Expect Me To Take Okada(bike) From Mma2 To Mmia With All My Luggage?

Or After Arriving Mmia From Yankee And Want To Hit Ph, Abj Or Kan, With All My Plenty Suitcases, You Expect Me To Take Okada To Mma2 Because I Might Not Be Able To Afford The Outrageous Airport Cab Fare?



Please Reply
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Old 19th Feb 2008, 17:39
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I agree with 18Left and GroskintheFlyer. Bi-Courtney failed to foresee 3 key issues:

1- The rising domestic traffic. The terminal simply cannot meet the capacity required by its own contractual exclusivity to serve domestic flights. The amount of aviobridges and gates offered is a total farce. For Bi-Courtney to come and say they will use GAT ramp is an ever bigger farce: Where have the $300 million been invested? Why is the ramp so small?

2- The lack of a functional, efficient, and fast link between MMIA and MMA2 means some airlines like VK (duh) will shun the terminal because it doesnt fit with their business model of establishing a HUB in Lagos.

3- Federal Govt. of Nigeria "agreements" are (a) usually not binding and practically junk pieces of paper and (b) sometimes undermined by conflicting parallel agreements with third parties. Tinapa in Cross River is a good example of a govt-backed yet govt-killed project.


Where's the provision for the above? In my opinion Bi-Courtney is too politically linked to Andy Uba / Babalakin / Obasanjo and has very little to offer in international expertise. The signage, undercapacity, and whare-house like appearance in the inside leaves MUCH to be desired. Also, Bi-Courtney has not commented about the future phases of its terminal to explain the capacity issue. This is a bad sign!
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Old 19th Feb 2008, 20:21
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Kadaria,
Welcome to the board and it's nice hear your version. I just need to ask you a few questions just like everone else.
1) Why did the MD of MMA2 say that the reason they wanted VK was because they needed to pay back loans taken from the banks?
2) VK is the largest user of FAAN facilities and all bills are settled on a monthly bases with no arrears. If they are biggets debtors, why do you want them?
3) The email was sent to MMA2 by VK worthiness people as part of the audit exercise which is how they got a copy. Have ALL the deficiencies noted by VK been solved to their succes?
4) How are user fees in relation to current MMIA level?

Awaiting for you reply on yhese issues. I would also be interesting to see how you intend to handle the amount of departures as shown by aerlier poster.

Rgds

Net
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Old 20th Feb 2008, 00:54
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Grrr Caution..............

GENTLEMEN,......CAUTION....My dear kadiria is the messenger dont overkill him,having accepted that he knows next to nothing, i cannot but wonder why we are all wasting our energies on a neophite and a non-starter,as you well know this guy has to justify the bread(no offence)just reality,bi-courtney has been backed by the hon AONDAKAA ......remember him in the not too recent EFCC saga,,for your info he has resurfaced again in these issues check out his press release on this issue and you will see that this fight has already been fought and won by the ALMIGHTY AGF,Bi Courtney for all its worth has been handed over the whole of MMA2 and Terminal 2 for your info?FAAN has been directed to hands off all domestic operations vide a memo you will soon be privy to...GUYS ...its musical chairs all over again,it seems we cant win,much as we would like to,and guess what NOBODY CARES its all about $,£,s and cents.i don tire i beg.....how far?NAIJA ON THE MARCH AGAIN...............
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Old 20th Feb 2008, 11:03
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Virgin Nigeria/Ministry of Aviation legal issue

It is rather unfortunate that the situation has reached the present level between Virgin Nigeria and the Federal Ministry of Aviation in Nigeria.I Think a lot of people do not know the meaning of the "Hub and spokes System", as it relates to the Airline business.

If we are able to delve into the History of Aviation, we will see how Aviation started,which was initially in France, with trhe first airborne balloon.This progressed to the Airship,and then the Aeroplane. The use of Aeroplanes for transport was initiated with the United States Military distributing mails by air. I could go on and on.

Airlines initially used to conduct flights from a departure point, passing through many stops before reaching the destination. This resulted in passengers spending a lot of time, passing through stops which were not on their itinerary. This is what gave birth to the "Hub and spoke " system. Using a bicycle/motorcycle wheel to Illustrate, the center represents the hub of the airlines operation. The spokes represent flights originating from various points which terminate at the hub. Passengers are now transferred at the hub, to other flights going to their various destinations.

I will use American Airlines as an example. American airlines uses the Dallas/Fort-worth Airport as their hub. They operate more than 250 flights daily(This may be an understatement), out of the hub.They do have their own terminal, from which all their flights operate. There are standards for passenger/baggage transfers,and the availability of services to passengers(e.g.Banks etc) for a place to be classified as a hub. I believe that if things were like they should be, nothing prevents Virgin Nigeria from building their own terminal for their hub operation. This is what applies in the todays world.
A hub facilitates the tranportation of passengers from place to place.

The former domestic terminal building, which got burnt at the Muritala Mohammed Airport was situated at a certain geographic location. There are standards which govern the proximity of an Airport to the runway, and even two parallel runways like what is at the Muritala Mohammed Airport.That is why the previous terminal building was built at that location and the two parallel runways are presently where they are.

For reasons not known, a car park was constructed, where the previous terminal building was located, and the new terminal building was constructed on the ramp, where aeroplanes used to park. It is interesting to mondering whether the builders did not take these issues int consideration, or decide to ignore them. These problems were obvious right from when the construction of the terminal building started. It is rather unfortunate that the people expected to be knowledgeable are the one making statements which leaves others in doubt about their competency.

Mistakes have been made, and it is impossible to physically transfer MMA2 to a better location. One has to just live with it.


On the issue of Aircraft accidents from available reports, it was not unusual for Aircraft collisions on the ground at the old site(aka Ganeral aviation terminal) until the Airport authorities finally decided to expand the ramp area. There was this joke among some pilots operating there, that the ramp looked like an Aircraft carrier, the way Aeroplanes were parked, on it

The fact that some errors have been made, does not mean that the wrong people should suffer.
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Old 21st Feb 2008, 04:59
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Beat Goes On

SPORTS

Thursday, February 21, 2008
Airlines battle govt over terminal
From John-Abba Ogbodo, Abuja
THE decision of the Federal Government to relocate domestic operations of Arik and Virgin airlines from the international terminal to Murtala Muhammed Airport 2 (MMA2) is still being opposed by them.
The airlines yesterday in Abuja argued that the decision could cripple their operations, hinting that they might relocate to neighbouring countries with favourable operating environments and opportunities.
While the two airlines raised the issue of safety, Virgin added that the action of government was a breach of the Memorandum of Mutual Understanding (MMU) signed with government prior to its operations.
According to the airline, there is a clause which states that no operator can own or run an alternative terminal while it subsists for a 36-year period.
Also, officials of Arik, Virgin, Federal Airport Authority of Nigeria (FAAN) and Bi-Courtney, developers of MMA2, appeared before the House Committee on Aviation yesterday evening.
Director of Corporate Operations, Virgin Airline, Mr. Larry Agose, told the committee that the relocation would affect the vision of "seamless operation" in the country.
He added: "We entered into an MMU with the government in 2004. 51 per cent of the company has been ceded to Nigerians as agreed. MMA-2 will create constraints for us in terms of passenger connections and seamless operations."
Chairman, Bi-Courtney, Mr. Wale Babalakin, however, countered, saying the airlines were being "hypocritical" because they were uncomfortable with the new arrangement.
"I can tell you that the MMU Virgin entered into with the government is not something that could be said to be binding," he declared.


Tools

Just came across this in the guardian,is the answer to this relocation?methinks that option is business suicide.
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