View Full Version : Virgin Nigeria/NEA, beginning of the end?
According to inside sources VK/NEA 737 fleet will be repossessed tomorrow. The entire Boeing fleet. With several months unpaid salaries it's a miracle this airline is still flying. Was the rebranding exercise a futile + expensive one? Time will tell. It's a shame the journey is ending like this for what was supposed to become one of Africa's success stories.
Mr. Smith
3rd Nov 2009, 11:59
Unfortunate turn of events if true. Probably 50% as a result of govt. actions and inaction. Hope the same doesn't eventually befall W3.
eagleflier
3rd Nov 2009, 12:41
Not nice to hear.
First it was Bellview, now its Nig Eagle. This just increases the amount of experienced 737 drivers out of work:sad: and will make it even harder for low hour dudes lookin for work.
as the saying goes, :mad: happens
GlobalFlyer
3rd Nov 2009, 12:41
I respectfully beg to differ with you in that I believe most of the blame falls on the previous management of Virgin Nigeria.
The seconded Virgin Atlantic team has literally drove the airline to the ground. Overinflated aircraft leasing contracts, high payroll cost for seconded staff, bad decisions (regressing from A340 to London Heathrow to old 767 with no PTVs flying to Gatwick instead), bad equipment choice (A340 flying to Dubai mostly empty).
Yes the government has not been helpful, perhaps broke its agreement by forcing VK to MMA2 domestic terminal, BUT, the management team has made one bad decision followed by the next, topping it off with the worse PR management ever (waging war on the government instead of working with the government).
I just don't see how NEA can be saved with a devastating USD 250 million debt portfolio, and 2 operational E-Jets. New MD Dapo Olamide needs a miracle now or a very courageous investor to take this airline forward with some serious cash.
Without wanting to sound naive here, I sort of agree with Globalflyer.
When Virgin Nigeria arrived at the scene Nigeria was literally an aircraft dumpster with little to no professionalism/procedure in anything. It was a case of green field investment.... Blaming the Nigerian govt. alone is not fair at all and points to managerial failure on the part of successive management teams at VK.
How the airline has managed not to turn any profit in over 4.5 years, in the contrary, managing to totally erode the Virgin brand locally, is beyond my comprehension and a monumental failure. It is not rocket science. Invest seriously+cautiously, bring in foreign know-how, don't underestimate political risk and mitigate appropriately. Yet Virgin Nigeria has found it easier to blame the govt, blame the bird strike, blame the airport workers, blame SAHCOL, etc. etc. etc.
Does it make sense to send 60% of your fleet to be repainted (and in the process incur tends of thousands of dollars repainting and overflight fees) while your staff have not been paid in 3 months? This of course is while your own website sports the old livery/brand confusing everyone including the media?
Well, it's understandable if the govt. refuses to bail them out somehow. In that event, Dapo should jump ship and await a serious group of investors and start afresh away from the nightmare that was the Virgin Nigeria brand.
Plane Envy
3rd Nov 2009, 16:50
This cannot be true - any of it - I heard that the eagle was landing back in London in April ..... in a 777 leased from SQ
18left
4th Nov 2009, 08:25
Sorry folks,dont be in to much of a hurry to bury bluetail,Kayode has faith,and is resilient.
A set of crews are been trained on the 767,and he's taking delivery of 767-300ER,anytime now,advertising jeddah already!
As for VK,you can add UBA,to the list of thier woes,by unfulfilled promises!!!!!!
Plane Envy
4th Nov 2009, 16:01
Interesting comment from 18left about UBA & VK ? Any more details available?
Blue Tail obviously didn't inform BAA that he meant December not November for resumption of services. November was the bold statement when they first suspended operations then he back tracked- check out the arrivals / departures for LHR
JED is crucial if he doesn't launch that on 08 November no one will trust him with their christmas trip to London and book elsewhere...
Or will they?:8
jlahan
5th Nov 2009, 07:37
i learnt they have paid one month salary and also paid for the B737-300 aircrafts lease.i believe this is a good sign that they are still in business:ok:
eagleflier
5th Nov 2009, 15:31
i learnt they have paid one month salary and also paid for the B737-300 aircrafts lease.i believe this is a good sign that they are still in businesshttp://images.ibsrv.net/ibsrv/res/src:www.pprune.org/get/images/smilies/thumbs.gif
Who's they cos there are now 2 different airlines being discussed on this thread?:confused:
VN has a 737 parked at the maintenance/paint hangar at Perpignan at the moment. Along with a Air Senegal International, I have to admit I had a chuckle!
18left
6th Nov 2009, 05:58
Eagle flier,that would be VK.
Rumours abound help came from above...........
Stefulov
6th Nov 2009, 06:40
Rumours. rumours, rumours! Nigerians cannot wait to bury a cat with a cold figuratively speaking! Show me any airline without issues. Is it Arik who could not pay ASL for meals last year due debts? The only negative point for VK is that the airline attracts publicity whether it likes it or not and unfortunately, this period more than most. The staff have all been paid now and things are looking up. I must commend Dapo Olumide for his drive and stellar attempt at revival and he is doing a gud job. The recession has not been easy on the aviation industry internationally; BA,etc so give VK a break!
DA-10mm
6th Nov 2009, 06:43
why is this such a big shock to everyone?
Africa is what it is. Been there, got the t-shirt, paid tax on it...
a reposessed fleet somewhere on The Dark Continent?
Some scumbag operator not paying they're bills?....total shocker.
Rani and GR...so true.
18left
25th Feb 2010, 03:56
So whats going on?
is Jimoh ibrahim going on?
two have been repossed,will they come back for the remaining three?
ppruners whats going on?
I doubt Jimoh has a solid plan. My thoughts are with the employees, who are still hanging by a thread since last summer.
Klogic
26th Feb 2010, 08:03
Latest is that J I has decided not to do the thing again.
18L how's the other side?
baba70
27th Feb 2010, 04:12
ppruners please expansiate, did VK get some tails reposesed?
thought the new news was that they got a life iine from some semi-deep pocket dude??
surely not
27th Feb 2010, 04:34
How does one 'expansiate'?? wtf does it mean???
I really hope that all does come good with VK, a lot of very good people working for them who have put a lot of hard work into trying to fulfil the dream. Without doubt VK can take a lot of credit for moving things forward with regard to safety in Nigerian aviation by showing that high standards of safety can be achieved.
Rani I usually think you make valid points but you are off course if you think that the mess was all down to the VS implant managers and nothing to do with the shifting sands that paraded as Govt policy. It is difficult to plan effectively for the future if obstructions and diversions keep being set in the way by the Govt policy makers.
Sure VS was charging a lot of money for the A340's but it also displayed a lot of patience in claiming its money as it recognised the difficulties that VK was experiencing with sudden changes to policy.
The original business plan for routes was overly optimistic and had to be re written. The demand for the opening of London as the first route was a curve ball courtesy of Obasanjo and his boys at the very last minute, as London wasn't planned to come on stream until 6 months after start of operations!!
The Managers, local and expat, shrugged their shoulders, dug deep, worked hard to achieve what was needed to move forward. To rubbish them all is unwarranted. They cannot all have been bad as many have moved on to do very well elsewhere!! Chris Smyth at SAA springs readily to mind as one example.