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Virgin Nigeria, a subsidiary of Sir Richard Branson’s airline, will face the Nigerian Government in court today as it contests an order to relocate its Lagos operations.
The West African carrier, which is 49 per cent owned by Virgin Atlantic, has been told to move from the international terminal at Lagos airport to the more chaotic domestic terminal. Virgin is seeking an injunction against the order, which it claims breaches a contract signed with the Government in 2005. The carrier will argue that it needs to be at the international terminal to connect with Virgin’s services to London.
Its £30 million investment in Nigeria is understood to be under threat if it is forced to move its operations. Virgin Nigeria is effectively taking legal action against one of its own shareholders, as the Government, together with banks and investment funds, owns a majority stake in the airline.
A Virgin spokesman said: “We signed an agreement with the Nigerian Government and that is the basis on which the airline has operated since it was created. That needs to be honoured.”
The launch of Virgin Nigeria was seen as a boost for the Nigerian aviation sector and an opportunity to improve safety standards in an industry that has been devastated by a string of accidents. The airline connects Nigeria’s main cities, flies to nearby countries, such as Benin and Senegal, and offers long-haul services to London and South Africa.
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well Africans are known as what they are known for; it will be a shame if agreement signed in 2005 is now having problems just withing two years of signing it . I think Richard Brandson has done Nigeria a big favour afteral they had several aircrafts and all of them went under mismanagement. Slight deviation from agreement will proof western world right that african leaders are unreliable.
Pauline Olagbaiye, Woolwich, London
Read the articel - Virgin is majority African owned with African management!!!!
chucks, Lagos, Noerica
Mr Mkhize - Were you also sick and tired of Virgin Atlantic when they bailed out the Nigerian Government with a workable plan after the collapse of the national airline? The Government signed an agreement with Virgin which they are obliged to honour, and Virgin have invested heavily in the Virgin Nigeria operation and yet to see a profit. A change in administration cannot undo the agreed terms of business unless there is legislation that makes previous agreements unlawful, and if your accusations of wrong-doing by the British government are true, then you should cite specific cases to support your argument. The insistence of the Nigerian government to move Virgin Nigeria from the international terminal is not a change in legislation, but purely pandering to the business interests of others.
James Barrows, Slough, UK
We are sick and tired of getting the British companies wanting to do as they want on the African continent. The agreements signed by a former government should be honoured by the new government, when business is the favour of the British, but when it comes for the Africans to get the same treatment in the UK seems to change. Why is that African Government never get an agreements honoured by new British Governments. When a shareholder is complaining and wanting to introduce new players on the African continent the British should follow the rules and abide to the new instruction. For example the British Airlines fly from city to city on the African continent, when the same applies to African Airlines wanting to fly fron city to city on the European market, the doors are shut as a none starter. These attitude of being professional is not true, the way things are to be done should change, its not that The African Airlines do not want to compete, but it the system is set so.
Thuthukile Mkhize, Harare, Zimbabwe