US Considers Objections To Virgin Nigeria's Application

[jirginsama]

*

UNITED States authorities has resolved to consider several objections and comments it has received on Virgin Nigeria's desire to obtain permission to fly direct to the US. Support for the application is also on the rise among Nigerians residing in the country.

Spokesman of the US Department of Transportation, Mr. Biol Mosley told The Guardian at the weekend that the department had received several objections since Virgin Nigeria's application was filed on December 22.

Among the objections are those from three US airlines - American Airlines, Continental Airlines and World Airways. There is also an objection from FedEx, a US courier company.

PRONACO-US has also submitted a petition, asking the US Transportation Department to reject Virgin Nigeria's application.

But in what seems as fallout from the PRONACO objection, no less than 70 petitions in support of the Virgin Nigeria has been sent to the US government via the US Department of Transportation's website.

Some of the supporting petitions are from the New York office of the United Bank for Africa (UBA), New Era Capital Corporation, former TV physical trainer, Pamela Mojekwu-Christopher and several other Nigerian professionals, including medical doctors, investment bankers, college professors.

Virgin Nigeria's application comes under the US-Nigeria Open Skies agreements, which sets "liberal ground rules for international aviation markets and minimise government intervention," according to a US government statement.

It is now two months after the Nigerian-designated airline applied to the US government for approval. Mosley, however, said there was yet no specific time when the US government would take a decision.

But conscious that the objections to its application may affect the decision of the US government, officials of Virgin Nigeria (VN) have reportedly entered into talks with the US airlines that objected to its application.

Dr. Yemi Osindero, the Corporate Development Director of Virgin Nigeria, said one of the firms, American Airlines, has withdrawn its objections. He described World Airways' objection as benign with the approval by the Nigerian government of World Airways application to fly direct to Lagos.

"Continental Airways is the main objection now," Osindero said, adding that, "Virgin Nigeria will like to work with Continental as partners on the US-Nigeria routes."

He said FedEx's objection had more to do with the United Kingdom government and Virgin Nigeria's technical partners, Virgin Airlines of UK.

Osindero, himself a former UK-based Nigerian professional, dispelled claims that Virgin Nigeria was trying to become a monopoly on the Lagos-New York route. "We are not trying to be a monopoly; Virgin Nigeria is all for open service of the US-Nigeria route, the route is bigger than one airline to manage," he said.

Indeed, it is believed that the US-Nigeria route is one of the most lucrative routes in the business. It is believed that Air France, for instance, makes 20 per cent of its profit in Africa.

http://www.guardiannewsngr.com/news/article05

[Rani]

Virgin Nigeria has filed its latest surreply on Feb 23rd, which counter-attacks Continental and their pathetic propaganda!!!

The 36-page document can be found here:

http://dmses.dot.gov/docimages/pdf95/387575_web.pdf

Good luck to VK and all other Nigerian airlines wishing to launch services into the US ! :ok:

[Glassos]

Virgin Nigeria has filed its latest surreply on Feb 23rd, which counter-attacks Continental and their pathetic propaganda!!!
The 36-page document can be found here:
http://dmses.dot.gov/docimages/pdf95/387575_web.pdf
Good luck to VK and all other Nigerian airlines wishing to launch services into the US ! :ok:
"Pathetic propaganda" indeed! Continental absolutely has valid objections to Virgin Nigeria being given this route, in that Continental's application to serve Lagos was denied by the Nigerian government last year.

[Rani]

"Pathetic propaganda" indeed! Continental absolutely has valid objections to Virgin Nigeria being given this route, in that Continental's application to serve Lagos was denied by the Nigerian government last year.

Glassos, you seem to forget that the root of the problem was that Virgin Nigeria was barred from plying US routes because it was considered 'British'. Subsequently, you couldn't have expected the Nigerian government to hand CO the route rights on a gold or silver platter. It is simply a mattery of reciprocity.

I don't think you would classify Virgin Atlantic as being a Singaporean carrier because SQ owns 49% of its shares. Think about it. The US DoT can no longer speculate on the matter, it must present real concrete facts.

The matter can be resolved. The ball is in the US DoT's court.

[Glassos]

Virgin (and Richard Branson) holds a substantial piece of the equity in Virgin Nigeria. The US DoT position is, and has been, that given Virgins opposition to allowing competition into Heathrow, that Virgin should not be given access from a third country. Are they directly related, no! But certainly a quid pro quo exists. Virgin wants to exclude competition on the one hand and wail about unfair competition on the other. All DoT and Continental want is for the Virgin group to be consistent. The Nigerian govt. was quite happy about Continental flying into Lagos until Branson muddied the waters.

[PAXboy]

[treading very carefully] The objections by both BA and VS to more routes and carriers using EGLL are said to be because a similar opening of routes within the USA was not on offer.
That is to say, that US carriers would be able to carry from EGLL to any of their US based hubs and that BA and VS are being prevented from doing so. Therefore, it would not be fair competition and therefore, no deal. That is one reason why VS is setting up it's own US carrier, so that it can offer better onward connections.
I agree, it is quid pro quo but opening up EGLL to all any US carriers to all and any US fields is not going to balance with operating Lagos to the US!
I sit to be corrected.

[oneeyed]

I don't think you would classify Virgin Atlantic as being a Singaporean carrier because SQ owns 49% of its shares. Think about it. The US DoT can no longer speculate on the matter, it must present real concrete facts.


Just remember also that Singapore Airlines doesn't control 95% of Virgin Atlantic's management!

As bad as it may be for potential Nigeria/US Travellers I can for once understand the attitude of the DoT.:ok:

[surely not]

One eyed, why can you understand the DoT attitude? What are you suggesting? If it is what I think you are suggesting, then you might be very wide of the mark.

VS has an interest in how VK performs, in the same way SQ has an interst in how VS performs. They both invested money so they quiterightly want to look after their investment.

Maybe the way forward is for the non US airlines to go bust, claim Chapter 11 and start an International expansion on a far from level playing field a la Delta. The DoT doesn't mind about that.

[oneeyed]

S N - I am suggesting nothing at all.

All I am trying to do is look at the situation from the Dot's point of view. There is a BASA and an Open Skies agreement between the US and Nigeria that says that any airline designated under either one of the agreements must substantially represent the interest of the country or its people for the designation to be acceptable to the other side (or words to that affect).

It is now up to the DoT to decide whether the Nigerian contents is substantial enough - I would say the interest of VA is substantial too.

It now depends whether you want to see the glass as half empty or half full.

Unfortunately not in our hands - but the DoT

[surely not]

Well if the criteria is -

must substantially represent the interest of the country or its people for the designation to be acceptable to the other side (or words to that affect).

then VK satisfies those criteria already. So it is down to politics and smoke and mirrors before it will be solved.