Virgin Nigeria Vs Federal Govt Of Nigeria Et Al
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VK are introducing the first of its 10 EMB175/195 in september.
So I guess schedule changes and expansin into new routes are likely, that would explain why their time table shows "till august30/32"
So I guess schedule changes and expansin into new routes are likely, that would explain why their time table shows "till august30/32"
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Branson To Dump Virgin Nigeria
FBN, UBA Tipped To Buy Shares
Virgin Atlantic Limited (VAL), the core investor in Nigeria's troubled flag carrier, Virgin Nigeria Airlines (VNA), is set to reduce its shareholding in the Nigerian venture from 49 per cent to 7 per cent. The airline is therefore shopping for an investor to pick up 42 per cent of its shares in VNA.
LEADERSHIP SUNDAY reliably gathered that the airline is shopping for an issuing house to handle the private placement that would emanate from the divestment. It was gathered that First Bank of Nigeria (FBN) Plc and United Bank for Africa (UBA) Plc were top on the list of the financial institutions targeted by the airline for underwriting the planned share purchase.
The airline has approached First Bank to underwrite the acquisition of VAL's 42 per cent shareholding in VNA at the cost of $25 million. It was also learnt that UBA had earlier been approached with the offer, but it was not clear why the bank that holds 5.25 per cent of VNA through its subsidiaries could not snatch the offer.
The plan is that either UBA or FBN would underwrite 42 per cent of VAL's holdings in VNA, warehouse the shares and then sell them through private placement within nine months. The amount for the underwriting arrangement would be secured by executed share purchase agreement between VAL and VNA and an executed board resolution of VAL authorising the sale of 42 per cent of its holdings in VNA.
VNA's director of corporate communications, Mr. Larry Agose, who refused to confirm the story, however, told LEADERSHIP SUNDAY in a telephone interview that the airline has not decided on an issuing house for the underwriting of the divested shares.
VNA made a turnover of N20.9 billion in its operations in 2007 during which period it recorded a loss of N9.5 billion.
Airline industry operators contend that Sir Richard Branson, the chief executive of VAL, was under pressure from Singapore Airlines, a key shareholder in VAL, to dump its loss-churning venture in Nigeria. "Singapore Airlines has told Branson to choose between it (Singapore Airlines) and Virgin Nigeria Airlines," said our source who would not want his name in print.
VNA's domestic operations were grounded last week by the federal government following the airline's refusal to relocate its domestic operations to Terminal 2 of the Murtala Mohammed Airport, Ikeja, known as MMA2.
Industry operators blame VNA's huge operational losses on the fact that VAL's lease rental to VNA were too high. They also contend that VNA pays $250, 000 monthly to VAL for the use of its brand name - a sum, they said, was too high for an airline struggling with teething problems at a time many airlines were going bankrupt because of the high cost of fuel. It was also argued that the expatriate staff seconded to VNA was too expensive for the budding airline as each of them costs the airline an average of 100, 000 pounds monthly.
Besides, VNA's salary structure is said to be above industry standard in the country, while the airline's staff to aircraft ratio is too high. "The airline has too many staff members," said our source.
However, former minister of aviation and current governor of Bauchi State, Malam Isa Yuguda, who called this reporter to speak on the travails of VNA, lamented that the forced relocation of the flag carrier's domestic operations to MMA2 was a disservice to the nation's aviation industry.
The governor, as minister of aviation in 2004, was instrumental in the emergence of VNA.
He said the decision to allow the flag carrier to run its domestic operations from the international wing of MMA was premised on the fact that Lagos was to serve as a hub for airlines in Africa.
He contended that former president Olusegun Obasanjo gave him the permission as minister of aviation to sign the undertaking allowing VNA to run its domestic operations from the international wing of MMA because that was the wisest thing to do at the moment because of the synergy that the airline would derive from it.
The governor said that the decision to breach the agreement allowing VNA to run its domestic operations from the international wing of MMA has sent wrong signals to foreign investors.
"Richard Branson is a reference point. Any investor in Europe coming to do business in Nigeria would certainly ask him his experience in the country," he said, wondering what Branson would narrate to prospective investors, given government's decision to breach the agreement reached with him.
Virgin Atlantic Limited (VAL), the core investor in Nigeria's troubled flag carrier, Virgin Nigeria Airlines (VNA), is set to reduce its shareholding in the Nigerian venture from 49 per cent to 7 per cent. The airline is therefore shopping for an investor to pick up 42 per cent of its shares in VNA.
LEADERSHIP SUNDAY reliably gathered that the airline is shopping for an issuing house to handle the private placement that would emanate from the divestment. It was gathered that First Bank of Nigeria (FBN) Plc and United Bank for Africa (UBA) Plc were top on the list of the financial institutions targeted by the airline for underwriting the planned share purchase.
The airline has approached First Bank to underwrite the acquisition of VAL's 42 per cent shareholding in VNA at the cost of $25 million. It was also learnt that UBA had earlier been approached with the offer, but it was not clear why the bank that holds 5.25 per cent of VNA through its subsidiaries could not snatch the offer.
The plan is that either UBA or FBN would underwrite 42 per cent of VAL's holdings in VNA, warehouse the shares and then sell them through private placement within nine months. The amount for the underwriting arrangement would be secured by executed share purchase agreement between VAL and VNA and an executed board resolution of VAL authorising the sale of 42 per cent of its holdings in VNA.
VNA's director of corporate communications, Mr. Larry Agose, who refused to confirm the story, however, told LEADERSHIP SUNDAY in a telephone interview that the airline has not decided on an issuing house for the underwriting of the divested shares.
VNA made a turnover of N20.9 billion in its operations in 2007 during which period it recorded a loss of N9.5 billion.
Airline industry operators contend that Sir Richard Branson, the chief executive of VAL, was under pressure from Singapore Airlines, a key shareholder in VAL, to dump its loss-churning venture in Nigeria. "Singapore Airlines has told Branson to choose between it (Singapore Airlines) and Virgin Nigeria Airlines," said our source who would not want his name in print.
VNA's domestic operations were grounded last week by the federal government following the airline's refusal to relocate its domestic operations to Terminal 2 of the Murtala Mohammed Airport, Ikeja, known as MMA2.
Industry operators blame VNA's huge operational losses on the fact that VAL's lease rental to VNA were too high. They also contend that VNA pays $250, 000 monthly to VAL for the use of its brand name - a sum, they said, was too high for an airline struggling with teething problems at a time many airlines were going bankrupt because of the high cost of fuel. It was also argued that the expatriate staff seconded to VNA was too expensive for the budding airline as each of them costs the airline an average of 100, 000 pounds monthly.
Besides, VNA's salary structure is said to be above industry standard in the country, while the airline's staff to aircraft ratio is too high. "The airline has too many staff members," said our source.
However, former minister of aviation and current governor of Bauchi State, Malam Isa Yuguda, who called this reporter to speak on the travails of VNA, lamented that the forced relocation of the flag carrier's domestic operations to MMA2 was a disservice to the nation's aviation industry.
The governor, as minister of aviation in 2004, was instrumental in the emergence of VNA.
He said the decision to allow the flag carrier to run its domestic operations from the international wing of MMA was premised on the fact that Lagos was to serve as a hub for airlines in Africa.
He contended that former president Olusegun Obasanjo gave him the permission as minister of aviation to sign the undertaking allowing VNA to run its domestic operations from the international wing of MMA because that was the wisest thing to do at the moment because of the synergy that the airline would derive from it.
The governor said that the decision to breach the agreement allowing VNA to run its domestic operations from the international wing of MMA has sent wrong signals to foreign investors.
"Richard Branson is a reference point. Any investor in Europe coming to do business in Nigeria would certainly ask him his experience in the country," he said, wondering what Branson would narrate to prospective investors, given government's decision to breach the agreement reached with him.
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If the above story is true, does it not mean that, effectively, the government actions were the last straw, and now Branson is taking his money to places where he doesn't get dicked around like this? Or is there another interpretation?
Another question. Is there or isn't there a reliable bus transfer service from MMA2 to MMIA and back within the perimeter of the airport? Seems to me that, ignoring for now whether MMA2 has the capacity for VK and others' domestic operations, such a bus service would go a long way to resolving the problems associated with operating out of two terminals.
Another question. Is there or isn't there a reliable bus transfer service from MMA2 to MMIA and back within the perimeter of the airport? Seems to me that, ignoring for now whether MMA2 has the capacity for VK and others' domestic operations, such a bus service would go a long way to resolving the problems associated with operating out of two terminals.
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Last I checked (8mnths ago) there was no direct airside transfer between the two terminals. I do know there is/was something in the works by Bi-Courtney to provide transfer services, but I don't know the status of that. Though airside transfer would lessen the blow of operating out of two terminals, the fact still remains there is NO through check-in. Passengers would still have to get their luggage and re-checkin and go through security at the next terminal. Perhaps understandable when coming into the country, but it hardly makes send if for instance you leave Abuja en-route to South Africa you would checkin both at Abuja grab your bags at MMA2, proceed to MMIA and do the dance all over again. As Murtala is the primary gateway in/out of Nigeria it hardly makes sense to make everyone re-checkin when they get to Lagos. Think of the congestion if not just Lagosians, but everyone around the country who conneects via Lagos is forced to go through security again.
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After appearing to want to resolve the problems it seems now that the government has decided to hang tough and tell VK to walk. Maybe it was in response to the news of Virgin ATlantic divesting most of its shares in VK, or maybe it precipitated it, but today government spokesmen accused Virgin of attempting to dictate to the government, we aren't going to be pushed around, looking after Nigeria's interests, etc. etc. They are claiming that Yuguda, the aviation minister who signed the agreement with Virgin, was wrong and misguided (when in fact everyone knows he was imply the instrument of Obasanjo's decision to get VN to act as national carrier). I wonder if Mr Yar'Adua and his advisers have really thought this through.
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and what is vk plan for pilots ? if the erj's are still on the way even in this mess and the fact that they cant take any ICAO rated pilots, only JAR and FAA and after they dropped everyone else that was waiting to get in. what will they do when the planes arrive ?
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and what is vk plan for pilots ? if the erj's are still on the way even in this mess and the fact that they cant take any ICAO rated pilots, only JAR and FAA and after they dropped everyone else that was waiting to get in. what will they do when the planes arrive ?
Anybody knows whether the 2 e-jets are still going to be delivered this year despite the problems VNA is facing??
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Nostradamus
BRETHREN,After following this thread passionately since this saga started i now believe that JAGUNMOLU is the man that saw tomorrow,he pleaded for patience and that at the right time,we will get to see Masquerades face or feel its wrath. Its now very clear where all the brouhaha was headed,It might not be over yet i guess,It will depend on how the Almighty legal adviser to vk treads next.Either the Oyibo management did not listen to good advise or they deciced on a deliberate action to arrive at this crossroads, to get an excuse to divest thier bread,nothing new under the sun,its happened before in other countries to the same people.So it is left to the workforce to decide on their future,Bran always knew where he was headed,he's a shrewd bussinessman,its the other lot im afraid for,anyway life goes on.THE RACE IS NOT FOR THE SWIFT,NOR THE BATTLE FOR THE STRONG;BUT OF THE LORD THAT SHOWETH MERCY:
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Blessing in disguise
Folks should not waste thier tears on VK, as the management has declared that they are quite happy to operate their domestic flights from MMA2, as their pax load has increased substantially since thier forced relocation.
This is not suprising as the government spokesman ( special adviser Mr Adeniyi ) was quoted all over the media as saying that one of the conditions VK gave for setting up a flag carrier right from inception was that the federal airport authority must co-operate with VK in making sure that it's pax are offered the safest operating practices in compliance with ICAO standards and recommended practices. This is the kind of statement that Nigerians like to hear and coming from the government spokesman it is given credibility.
It appears that what the enemy had meant for evil has been turned into good !
This is not suprising as the government spokesman ( special adviser Mr Adeniyi ) was quoted all over the media as saying that one of the conditions VK gave for setting up a flag carrier right from inception was that the federal airport authority must co-operate with VK in making sure that it's pax are offered the safest operating practices in compliance with ICAO standards and recommended practices. This is the kind of statement that Nigerians like to hear and coming from the government spokesman it is given credibility.
It appears that what the enemy had meant for evil has been turned into good !
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Successful companies in debt
Loans and Borrowings are allowed to a particular debt to equity ratio for companies. Not to be confused with operating loss.
If VNL was quoted on a credible stock exchange the share price will be free falling now
Loans and Borrowings are allowed to a particular debt to equity ratio for companies. Not to be confused with operating loss.If VNL was quoted on a credible stock exchange the share price will be free falling now
Akunna Matata
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Whitedove, how can VK be happy at MMA2 when it means their arriving international pax can't even through-ticket to domestic destinations from abroad. Correct me please, but as I understand it, MMA2 is, to all intents and purposes, a new separate airport! If you go on MMA2's new web-site you will see absolutely no reference to how people are supposed to get from MMIA to MMA2. I have not heard any updates, but it still seems that pax who want to get from one terminal to the other cannot do so airside, and have to get taxis with all their bags, and some are missing their flights because of the terrible traffic. I hope I am wrong about this, but this really is nuts. Instead of integrating the airport, the government is allowing it to be split up, despite the fact that both these terminals (or both these "airports") use the same runway!
I am still very curious to know if MMA2's 12 gates are handling all of LOS' normal domestic traffic, or whether restrictions are being imposed, or whether they are only coping with the demand because Arik is at the GA terminal.
I am still very curious to know if MMA2's 12 gates are handling all of LOS' normal domestic traffic, or whether restrictions are being imposed, or whether they are only coping with the demand because Arik is at the GA terminal.
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TRUE
FRANGY,
All your thots and observations are TRUE and the FGN by Executive FIAT does not give a damn hoot methinks they believe they are providing for the taxi drivers cum touts and almighty militants A.K.A [ARMED ROBBERS] I suggest we all watch our backs and bags while making the 2km journey that takes 2hrs aluta continua,its a tourist amusement...................
All your thots and observations are TRUE and the FGN by Executive FIAT does not give a damn hoot methinks they believe they are providing for the taxi drivers cum touts and almighty militants A.K.A [ARMED ROBBERS] I suggest we all watch our backs and bags while making the 2km journey that takes 2hrs aluta continua,its a tourist amusement...................
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Frangible, all your observations are spot on, these are all the constraints that VK had been high-lighting all the while.
My point was that VK is making the best out of a bad situation.
What beats me is why it's so difficult for either FAAN, FGN, Aviation/Transport ministry or whoever is responsible to put in place facilities infrastructure and logistics for transfer of pax and their luggage from the MMA2 / GAT to the international airport, either via dedicated coaches, or light rail as in the case between north and south terminal at LGW.
Imagine a VK pax from Abuja or Port Harcourt travelling to London or Jo'burgh through Lagos, after arriving in Lagos having to reclaim their bags, then look for safe affordable transport to the international airport before re-checking in all over again.
Thankfully, since VK resorted to the only legal way to challenge government action, and government kicked them out even before final judgement was delivered, they had the fortitude to adjust, in spite of all the difficulties.
My point was that VK is making the best out of a bad situation.
What beats me is why it's so difficult for either FAAN, FGN, Aviation/Transport ministry or whoever is responsible to put in place facilities infrastructure and logistics for transfer of pax and their luggage from the MMA2 / GAT to the international airport, either via dedicated coaches, or light rail as in the case between north and south terminal at LGW.
Imagine a VK pax from Abuja or Port Harcourt travelling to London or Jo'burgh through Lagos, after arriving in Lagos having to reclaim their bags, then look for safe affordable transport to the international airport before re-checking in all over again.
Thankfully, since VK resorted to the only legal way to challenge government action, and government kicked them out even before final judgement was delivered, they had the fortitude to adjust, in spite of all the difficulties.
quidquid excusatio prandium pro
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it seems now that the government has decided to hang tough and tell VK to walk
Am I missing something here?