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1. The average govt official has no working knowledge of policy
Let me do a thread of how Virgin Nigeria fleeced Nigeria
If we remember vividly Virgin Nigeria was flying from the E wing of MMIA to ease the transfer of pax on intl flights
Let me do a thread of how Virgin Nigeria fleeced Nigeria
If we remember vividly Virgin Nigeria was flying from the E wing of MMIA to ease the transfer of pax on intl flights
2. Nigeria was pressured to start international routes and it used B767 that were problematic and fuel guzzlers.
3. Meanwhile virgin Atlantic was using A330's. If memory serves me right virgin Nigeria was flying London Dubai and Joburg
Do you see a pattern
Do you see a pattern
4. For people that fly to the UK regularly. You know no one likes to land at Gatwick.
But Virgin Nigeria was pushed to Gatwick from Heathrow
You see the pattern
But Virgin Nigeria was pushed to Gatwick from Heathrow
You see the pattern
5. Leading to poor conditions, revenue and patronage.
But Virgin Atlantic was still flying to Nigeria from Heathrow
But Virgin Atlantic was still flying to Nigeria from Heathrow
6. Virgin America made losses of $250m btwn 2007 and 2009. And people of God it's didn't close shop.
7. Virgin Nigeria borrowed a 4 month bridging loan of $20m from UBA it's partners/bankers in 2006
Followed by another $40m and an additional $100m zero coupon bond from Afrexim.
When the debt burden became too much for UBA Virgin Nigeria got $15m from GTB.
Followed by another $40m and an additional $100m zero coupon bond from Afrexim.
When the debt burden became too much for UBA Virgin Nigeria got $15m from GTB.
8. As at the time that the Virgin Group sought the facility, all the assets of Virgin Nigeria were held as collateral for the loan from UBA
Are you people seeing a pattern
Are you people seeing a pattern
9. failed to mention this to GTB meaning the $15m was unsecured.
Note that the only Nigerian on the Virgin Nigeria board was Larry Agose. Others were foreigners.
The seven 737's in operation were leased against global standards of 3yrs. We leased at 5years
Note that the only Nigerian on the Virgin Nigeria board was Larry Agose. Others were foreigners.
The seven 737's in operation were leased against global standards of 3yrs. We leased at 5years
10.120 block hours, Virgin Nigeriaâs was 200 block hours even when actual utilization was between 100 and 130 block hours
Yet, the unutilized hours ranging between 70 and 100 block hours were paid for even when the aircraft were out of service
Yet, the unutilized hours ranging between 70 and 100 block hours were paid for even when the aircraft were out of service
11.Standard monthly lease rate of US$125,000, the Virgin Group managers paid US$181,000.
IN addition to US$151,000 monthly maintenance reserve, bringing the total monthly expenditure for each of the seven B737s to US$332,00019
IN addition to US$151,000 monthly maintenance reserve, bringing the total monthly expenditure for each of the seven B737s to US$332,00019
12. Annual payment for each aircraft came to US$3,984,000 and US$19,920,000 for 5 yrs tenure per aircraft and US$139,440,000 in total.
Industry projection is that Nigeria lost over $60million to this murky lease arrangement;
Industry projection is that Nigeria lost over $60million to this murky lease arrangement;
13. An amount that became part of the N35billion debt of the airline
Consequently, it took a decision to exit having seen d imminent collapse of d airline it ran
Remember only one Nigerian was on the Board
Consequently, it took a decision to exit having seen d imminent collapse of d airline it ran
Remember only one Nigerian was on the Board
http://14.By 2007/2008, the Virgin Group had started complaining of its âloss-makingâ Nigerian venture.
UBA Capital had planned an IPO, which it projected would fetch them US$450million
UBA Capital had planned an IPO, which it projected would fetch them US$450million
15.But the then Board led by Mr. Ohiwere saw through the âhidden agendaâ in the plan, headed to court and botched the IPO.
Then Virgin Nigeria got its bankers to arrange a 2-year convertible bond of US$100,000.
Then Virgin Nigeria got its bankers to arrange a 2-year convertible bond of US$100,000.
16. Once the sum was available, UBA took US$20million upfront as interest and charges. Since it cannot carry last inside the matter
The Next part was what puzzled me.
The Next part was what puzzled me.
17. Virgin Group took US$35million $24m+US$11m, ostensibly to cover respectively its equity contribution for its 49% stake in the airline
18. Once Virgin Group took this money, having more than recovered its investment, it withdrew from Virgin Nigeria 
19. And demanded, under a threat of litigation that its brand be immediately taken off from the airline. LMAOOOOOOOOOĂ DEM RUN US LOCAL
20. This exit left the entire burden of the airline on UBA which provided all the funding with the exception of the US$15million from GTB
The irrefragable fact is that, no matter the Virgin Group pretences, they ran the airline aground; collapsed it and left unscathed
The irrefragable fact is that, no matter the Virgin Group pretences, they ran the airline aground; collapsed it and left unscathed
21.Thus, Virgin Nigeria, which the then President, OBJ, presented to Nigerians as in the best interest of our nation and That by 2010, would acquire 40 aircraft and employ 6000 Nigerians collapsed, leaving an operational debt of N35.5billion in three years
22. An operational debt profile which Nigeria Airways did not incur BTWN (1992-2002) to its unfortunate liquidation.
Worst still, the Virgin Group left without adding any value to the industry, no trained manpower, no assets; aircraft or structures
Worst still, the Virgin Group left without adding any value to the industry, no trained manpower, no assets; aircraft or structures
23. In all, it is a classic lesson of how not to hand over our patrimony, without a national oversight
Jimoh Ibrahim came from the backdoor and Bought the airline from UBA. AND changed it to AirNigeria. and it went under in a year. loooool
Same man wanted to become governor
Jimoh Ibrahim came from the backdoor and Bought the airline from UBA. AND changed it to AirNigeria. and it went under in a year. loooool
Same man wanted to become governor
24. Capt Olumide was our only hope of a proper National carrier. but UBA WAS DESPERATE TO SELL THE ASSET. that where uncle Jimoh came in
So see we need to rework this country from the the ground up
So see we need to rework this country from the the ground up
