Richard Branson
Branson’s Virgin Nigeria nightmare
Reports have reached from acquaintances in Nigeria about the latest developments over Sir Richard Branson’s Nigerian aviation (mis)adventure. Virgin Nigeria, which started operations a few years ago and was then greeted almost like a savior and given the “red carpet” treatment from the political leadership in Nigeria.
Much has changed since then. For one, the airline has been under immense pressure to move its domestic operation to a new terminal. The problem with this move, however is, that passenger links from the international arrivals terminal are virtually absent and take reportedly some 15 or more minutes driving in the best of circumstances.
More sinister, however, was the finding that one of the terminal’s owners appears to be the legal advisor to Nigerian President Umaru Yar'Adua, immediately entering a political dimension to the case and suggesting top level influence peddling and potentially another case of prominent corrupt practices.
Probably to “strengthen” their case for Branson’s Virgin Nigeria to reconsider their move to the new terminal, a gang of thugs then trashed the Virgin lounge, with airport security and other security organs conspicuously absent until the posh business class lounge was laid to ruin and the criminals had escaped into thin air again.
Virgin Nigeria claims to have a valid annex to their Memorandum of Mutual Understanding, (MOMU) under which the airline was formed some years ago and in which Branson’s Virgin Atlantic holds 49 percent shares, to comply with Nigerian aviation laws on ownership, under which they were granted both international and domestic operations from the same terminal.
The Nigerian government subsequently hastened to form a governmental committee comprising the transport and justice ministers, amongs others, and claimed that the annex to the MOMU was “not valid” and “only stamped” by the aviation authorities but not mutually signed and therefore not invalid and insists that Virgin Nigeria has to move its domestic operations to the new terminal.
Branson has in recent weeks already made it clear that he would wish to sell his stake in the Nigerian airline offspring, probably then also withdrawing his brand from the carrier. The latest violent attack on the lounge has undoubtedly worsened the situation and will do little to persuade the British mogul to stay on.
Nigeria has long been perceived as one of the most corrupt countries not only in Africa but globally as well. While much detail has emerged since the end of the military dictatorships over the massive personal enrichment of the former military rulers, little, if anything, seems to have changed since the country returned to civilian rule.
There is, however, a silver lining in this whole story. Virgin is also flying to East Africa, namely Nairobi, on a daily basis from London and should the Nigerian (ad)venture collapse Branson has the option to shift his attention to Eastern Africa. Since starting operations to Kenya last year, the airline has stuck to the destination in spite of the political wobbles earlier in the year and subsequent drop in passenger number, which has since stabilized and the route is again on course to become a profitable destination.
Sir Richard Branson has visited Kenya repeatedly in the past and has engaged in conservation support on a significant scale. It is, therefore, not entirely out of question that Virgin Atlantic may at some stage in the future consider forming a “Virgin East Africa” once the aviation industry has stabilized again from the current global turmoil. Nigeria’s loss would without doubt be a potential gain for East Africa.
Comments
Hi I ahve lived and flown the virgin airline domesticly and internationaly in nigeria the airline is fab but meeting a corrupted counties law is something else/ I do feel sorry for the man and Nigeria is only exploiting the guy if he moves to east africa it may be better but security has to be stronger.
I do wish you checked the facts first - it's all so confusing. From what a lot of us have been told and heard. Richard Branson is selling his shares because Singapore Airlines who owns some 49% shares thereabouts of Virgin Atlantic have told Richard Branson to choose between them and Virgin Nigeria as they are loosing money in that venture. Ths has been going on since 2007, with a lot of cost cutting in the industry. Has anyone noticed that a lot of airlines are folding up with the current cost of aviation fuel???? Virgin Nigeria/Richard Bransons woes has little to do with the move to the new airport wing. The handling was bad but ......it is actually beneficial to the company financially and what the Nigerian public prefer. But we always need to politizise everything instead of trying to find the greater good for all.
Hi,
I feel sorry for Sir Rich: his business advisors should have known that the Nigerian government has no respect for the rule of law.
I have even been wondering why and how they got a licence to run a bank (Access Bank) in Zambia. I know Alikon Dangote is an established and nighly successful businessman and that he will not take the wrong path of importing corrupt home-grown policies
If they can this corrupt and this criminal, I hope we won't be ripped off.
Mutimba
I really feel sorry for Mr. Branson: being such a towering business figure, he should at least at first known that Nigerians play hide and seek with the law.
I am even wondering how on earth Mr. Branson's advisors decided on entering into a partnership with a government that has no respect for the rule of law!
In addition to that, why did my government here in Zambia give them a permit set up an bank (Access Bank).
I hope Mr. Alikon Dagote will not rip us off!
Mutimba M
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