A former Minister of Aviation, Isa Yuguda, has shed light on the events that led to the early demise of Virgin Nigeria.
Founded in
2004 as a replacement for the then-defunct Nigeria Airways, Virgin Nigeria
operated as a joint venture between Nigerian investors and British billionaire
Richard Branson’s Virgin Group.
However, a
feud with the Federal Government led to the Virgin Group pulling out in 2009.
This prompted the airline to be renamed Nigerian Eagle Airlines and later Air
Nigeria. The business ultimately ceased operations in 2012.
Yuguda, who
was the aviation minister under former President Olusegun Obasanjo when Virgin
Nigeria was established, made a live appearance Friday on Channels Television’s
Sunrise Daily, to address the controversy over the unveiling of Nigeria Air.
The aircraft
branded with the Nigeria Air logo being unveiled at the Nnamdi Azikiwe
International Airport on May 26, 2023. Photo: Channels TV/Sodiq Adelakun.
The Minister
of Aviation Hadi Sirika held a Nigeria Air unveiling event in Abuja on May 26,
days to the end of President Muhammadu Buhari’s administration.
The project
has since come under intense scrutiny with the revelation that the single
aircraft showcased at the ceremony was in fact a chartered flight, a
development described by one probing lawmaker as fraud.
Arguing that
airline businesses are based on economies of scale, Yunuga underscored the need
for them to partner with the major players internationally.
“You want to
join the league (and) we had the opportunity but, unfortunately, we blew it
because, soon after I left office, another minister came and another one came,
then another one came,” Yuguda said.
“And he
decided that it’s not a good transaction for him, so he decided to advise the
government that they should drive away Richard Branson from Nigeria.
“It was just
a pity. Richard Branson was on CNN, saying, ‘Nigeria is the worst place you can
do business.’ He’s advising no international community member to come and
invest in Nigeria.
“Even the
mere fact that Richard Branson was investing in Nigeria – he has Virgin
Australia, Virgin America, Virgin India, and so many others, which are very
successful airlines.”
According to
him, Nigeria might need no less than $200-$300 million to be able to set up an
airline that it can call its own.
Pointing out
the level of competition in the sector, he listed British Airways, Lufthansa,
American Airlines, Cathay Pacific, and Singapore Airlines among those he
described as “the Big”.
The former
minister explained that, as world players, the leading airlines are in
alliances, such as SkyTeam and oneworld, allowing them to pool together and
form a global network.
“For Nigeria
Air now to say it wants to compete with BA even on the London route, I don’t
know how,” he added.
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