Rani
28th Apr 2005, 07:47
AON members continuing to nag instead of consolidating and developing pre-emptive strategies (too late for that)
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By: Ufot Essien www.business
Domestic airline operators in the country have become apprehensive as the nation’s new flag carrier, Virgin Nigeria Airlines prepares to be airborne.
BUSINESS DAY's chat with some of the operators reveal a deep rooted fear that first surfaced when the Virgin deal was announced September 2004, and which crystalises by the day as the new airline puts together final arrangements for its take-off.
A chief executive of one of the local airlines reacting to BUSINESS DAY's enquiry on what the business would be like in the new dispensation, said, "It is bad. It is bad. They (Virgin) are not only coming to take away business from us, they are coming to kill us."
Not done, the chief executive, obviously finding an outlet for a deep-seated anguish, added, "I don't know why they (government) should do this. I have been thinking of another business to go into since this thing (the Virgin deal) started. In fact, I don't know what else to do, I just know that the end has come".
Giving the specifics, the airline boss lamented: “These people (Virgin) are going to come in with brand new aircraft, because they can afford it, so how can we stand that?
He also found fault with the shareholding formula where Virgin Atlantic would hold 49 per cent shares leaving 51 for Nigerians. This, he said, would result in capital flight, that would leave nothing for the development of the local aviation industry.
The airline boss also accused the Aviation Ministry of being biased and of giving all the attention to the new airline at the expense of the local operators.
To drive home the point, he cited the giving of the office space at the Murtala Mohammed International Airport to Virgin Nigeria. "The same space we have been begging government over the years to allow us use for our operations, yet they refused", the airline chief executive complained.
He particularly accused the Aviation Minister of being overtly against local operators. He cited two instances when the minister had invited them to Abuja only to abuse them.
When asked what options are open to them in the circumstance, he said, "We shall not just fold our hands and watch it. We will fight it to the end." Adding, “it is not a battle for one man”. “No one would want to be singled out. It is going to be a collective thing", he said.
However, when contacted, Steve Mahonwu, Chairman, Airline Operators of Nigeria (AON), said there was nothing to fear about Virgin Nigeria’s coming. "We are ready to match them might for might", he said, but he was quick to add, "if given a level playing field. We are very happy and ready to welcome Virgin Nigeria into AON”, he said.
He would not say what constitutes a level playing field, though.
Virgin Nigeria Airlines was formed September 2004 as Nigeria's new flag carrier. It was initially billed to commence operations on October 1, 2004; a date that was later changed.
The airline is now set to begin operations in May. The airline took delivery of an Airbus A 320 aircraft on Tuesday. Hence local operators fear that the airline is coming with an intimidating might which they (local operators) cannot match.
-------------------------------
By: Ufot Essien www.business
Domestic airline operators in the country have become apprehensive as the nation’s new flag carrier, Virgin Nigeria Airlines prepares to be airborne.
BUSINESS DAY's chat with some of the operators reveal a deep rooted fear that first surfaced when the Virgin deal was announced September 2004, and which crystalises by the day as the new airline puts together final arrangements for its take-off.
A chief executive of one of the local airlines reacting to BUSINESS DAY's enquiry on what the business would be like in the new dispensation, said, "It is bad. It is bad. They (Virgin) are not only coming to take away business from us, they are coming to kill us."
Not done, the chief executive, obviously finding an outlet for a deep-seated anguish, added, "I don't know why they (government) should do this. I have been thinking of another business to go into since this thing (the Virgin deal) started. In fact, I don't know what else to do, I just know that the end has come".
Giving the specifics, the airline boss lamented: “These people (Virgin) are going to come in with brand new aircraft, because they can afford it, so how can we stand that?
He also found fault with the shareholding formula where Virgin Atlantic would hold 49 per cent shares leaving 51 for Nigerians. This, he said, would result in capital flight, that would leave nothing for the development of the local aviation industry.
The airline boss also accused the Aviation Ministry of being biased and of giving all the attention to the new airline at the expense of the local operators.
To drive home the point, he cited the giving of the office space at the Murtala Mohammed International Airport to Virgin Nigeria. "The same space we have been begging government over the years to allow us use for our operations, yet they refused", the airline chief executive complained.
He particularly accused the Aviation Minister of being overtly against local operators. He cited two instances when the minister had invited them to Abuja only to abuse them.
When asked what options are open to them in the circumstance, he said, "We shall not just fold our hands and watch it. We will fight it to the end." Adding, “it is not a battle for one man”. “No one would want to be singled out. It is going to be a collective thing", he said.
However, when contacted, Steve Mahonwu, Chairman, Airline Operators of Nigeria (AON), said there was nothing to fear about Virgin Nigeria’s coming. "We are ready to match them might for might", he said, but he was quick to add, "if given a level playing field. We are very happy and ready to welcome Virgin Nigeria into AON”, he said.
He would not say what constitutes a level playing field, though.
Virgin Nigeria Airlines was formed September 2004 as Nigeria's new flag carrier. It was initially billed to commence operations on October 1, 2004; a date that was later changed.
The airline is now set to begin operations in May. The airline took delivery of an Airbus A 320 aircraft on Tuesday. Hence local operators fear that the airline is coming with an intimidating might which they (local operators) cannot match.