Virgin to launch airline in Africa

Just a day after his announcement to establish space flights for tourists in the next years, Entrepreneur Sir Richard Branson launches another project, this time in Africa. Branson's Virgin Atlantic is teaming up wit the Nigerian Government to start a new airline for Nigeria.

The Nigerian Government and Virgin Atlantic Airways today signed an agreement to establish a new airline for Nigeria, to be called Virgin Nigeria. The new airline will be incorporated in Nigeria and majority-owned by Nigerian investors. Virgin Nigeria will receive specialist expertise and services from Virgin Atlantic, the UK based international airline owned by Sir Richard Branson and Singapore Airlines. Virgin Atlantic's support will enable the airline to be launched quickly, early next year and to the best international standards.

Virgin Nigeria will soon start recruiting in Nigeria. Within just a few years Virgin Nigeria expects to be directly employing several thousand people in Nigeria and creating a further 20,000 new jobs indirectly via its suppliers, partners and activities at Lagos airport.

Virgin Nigeria will start operations once all necessary approvals and authorisations have been obtained with seats expected to go on sale early in the New Year and the first flights commencing a few weeks later. The airline will have its home base at Murtala Muhammed International Airport in Lagos and will be opening routes as quickly as possible to many destinations. These will include domestic routes such as Abuja, Kano and Port Harcourt; regional routes such as Abidjan, Accra and Dakar, and international destinations such as the Middle East, the USA and Europe.

Virgin Nigeria will be owned 51% by Nigerian institutional investors, via a private placement process to be completed before launch. The balance will be held by Virgin Atlantic Limited. Total investment is expected to be around US$ 50 million, of which Virgin Atlantic will be providing its 49% share, likely to be around $24.5 million. After the airline has successfully developed a track record share ownership will be widened to all Nigerian investors via an Initial Public Offering on the Nigerian Stock Exchange.

The new airline will operate separately to the existing Virgin Atlantic services between Nigeria and the UK, which will continue normally. Virgin Atlantic currently operates from London to Lagos and Port Harcourt, with around 300 people in Nigeria supporting its business.

Speaking at the formal announcement in Abuja with President Chief Olusegun Obasanjo and the Honourable Minister of Aviation, Isa Yuguda, Sir Richard Branson, chairman of the Virgin Group, said: "Virgin's successful relationship with Nigeria is already over three years old, and through Virgin Nigeria we are now making a further investment of tens of millions of dollars into the country. I am proud to be associated with the Nigerian nation, and I look forward to deepening our relationship over the coming years."

A first design of a Virgin Nigeria plane. (Picture Copyright: Virgin Nigeria)

Virgin Nigeria aims to launch services between Lagos and Abuja. A specific date for the launch has not yet been given. Furthermore, other details such as what type of aircraft the airline will operate will be announced within a few weeks, according to Virgin Nigeria. However, according to the first pictures released today, it looks like the Airbus A320 could become the first aircraft for the new airline. If services to Europe and the USA are launched, a long-haul aircraft will become necessary too. However, it is not yet announced when service on these routes should begin.

After launching Virgin Atlantic Airways in London, Sir Richard Branson has also started low-cost airlines in Belgium (Virgin Express), in Australia (Virgin Blue) and in New Zealand (Pacific Blue). Furthermore, Virgin is planning to launch another low-cost airline in the USA, probably based in the San Francisco-area. All these airlines are part of the diversified Virgin group which includes a wide range of companies and products, from radio stations to mobile telephony or railway services.

Michael Meier

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Sources: Virgin Atlantic Airways