Virgin Nigeria to phase out EMB170/190s

[parisjet]

Apparently VN will be replacing all their EMBs with more B737 - 300s. Although the EMB is a fantastic aircraft for their market, the availability of cheaper secondhand B737 - 300s is too irresistable for them to resist. By selling the vitually new EMB's, a good return could be made to help dig them out of their current quagmire. I believe they eventually want to be operating up to 20 B737 - 300s soon. I personally think this is a logical step, however this will not help them in curbing Pilot attrition to other companies when the chips are down as is the current situ. They would obviously need to recruit expats for a while to cover the gap, but the solution is investing a cadet programme for their nationals.

[Rani]

Is this official, or speculation based on the non-delivery of the ERJ-170?
I recall Dapo Olamide was quoted as saying, word by word, "In the event we don't find an equity partner, we'll go for geriatric 737s".
Funny choice for wording! Anyway I see the logic of phasing out the expensive ERJs but don't see how a large fleet of fuel-hungry 737s will be of any value to them in the long run. Also, every single decision or business plan of VK in the past was either cancelled or u-turned some months of years later.
Are they capable of making any decision, and sticking to it? Re-branding, apparently cancelled? How much does it cost to update a website with your new legal identity? :rolleyes:

[parisjet]

That info I have was from an excert by Dapo himself in the latest issue of Airliners World Magazine. I agree with your points regarding their website identity etc.., I guess they’re situation is so dire that they’re playing and trying various formulas to stay afloat. Dapo comes across as an intelligent, and articulate individual with vasts amounts of experience not just in the Aviation sector. He came in when Virgin Atlantic were pulling out of their partnership, and has faced an uphill struggle since taking the reins. I believe his visions are realistic but challenging and I don’t believe for one minute that he’d have come on board without seeing a solution. On your other point regarding high cost of operating the B737 – 300, well you could probably buy 2 decent second hand ones from the sell of one EMB. Fuel guzzlers – yes but remember they’d possibly get a concessions on fuel after all Nigeria produces fuels. That’s my take anyway.

[Klogic]

Mere speculations i believe, especially considering the fact the E-Jets are not owned by Virgin Nigeria but by its bankers,that is if the buy-sell-lease back deal fell through.

However, 5N VNJ the E-170 is reported to be not taken up and has now been taken by an operator in Bahrain.

VK seems to be in a deep quagmire and needs a huge capital injection but a food for thought for any investor will be to start up a new airline rather than to commit a lot of money in paying debts some of which are spurious and outrageous.

Rani, Nigerian Eagle is yet to be a legal entity but a proposed one since all correspondences are made to VNA and the AOC is still belonging to VNA.

[Oyindo]

So what's going to the royalties owed for the Virgin Logo still on NEA aircraft. It was supposed to have been dropped a few months back, a paint bucket and roller cost a few quid and will take a few minutes make a white tail. I do feel sorry for them

[seper]

Well thats just it,they owe,i doubt they ever paid a dime for this royalties,that everybody makes a fuss about.

[Rani]

KLOGIC, I wonder what is taking so long in registering the new brand with CAC/NCAA.

Oyindo, I recall Omotoba (aviation minister's) first foreign assignment was flying to London to speak to Branson "about ways to rescue VNA" from impending collapse. I wouldn't be surprised if Omotoba actually carried threats to sabotage VS operations in the event VS didnt give VN some breathing space as far as brand use royalties are involved....

The ERJ-170 5N-VNJ is now in Gulf Air colors. I spotted it at the Bahrain Air Show yesterday.

[JABAG]

The registration of Nigeria Eagle cant go ahead as this Name is already registered by anoth individual. Negotiations have been ungoing, however I understand he wants a prt of the airline if the name is used.

Jabag

[GlobalFlyer]

And no one from VK took the fact that NEA was already registered when they spent months deciding on a name and finally selecting the NEA brand?

I smell mismanagement, corruption or government buraucracy.

[skyloone]

On a similar note there was an article in Flight Int. with a US major CEO who reckons it pays them to keep the fuel hungry MD's over the newer 738. At approx $300 000 lease cost per month, thats plenty of extra revenue required. However that is based on them having paid for the MD's therefore not sure how the equation works if you still need to finance the older 733's.

[Oyindo]

GF, if the MD can not get the name of the airline right then what hope does it have. Incompetence at its very best. I suggest we think up a few names and logos here that could be use since they lack imagination.

Any takers..................

Question? When the MD was VK consultant sometime back, wasn’t he the one that recommended and pushed VK to taking on the EMB’s