VIRGIN ATLANTIC REORGANISATION AND INSENSITIVITY

It is no secret that Virgin Atlantic is undergoing some cost restructuring and has done everything possible to cross the red line. They have closed some routes, reduced frequencies and gauge on some, while practically tearing down the low cost unit of the airline. In Nigeria, frequency has been consistent to Lagos, with increase in gauge, while Port Harcourt, along with Nairobi and Accra routes were axed sometime ago. Last week, the airline closed the Ticketing and Sales Department in Nigeria, throwing some Nigerians in the labour market while increasing the pain of their customers with the non acceptability of Nigerian credit cards. The airline’s spokesperson in Nigeria was quoted thus, “flight bookings, complaints or travel related calls from Nigeria will be directed to Johannesburg in South Africa.” He added that, “…the airline continues to review its business while driving efficiencies. Therefore, we are closing the Lagos Contact Centre and directing calls from Nigeria to the Johannesburg Contact Centre. Having one regional contact centre will mean we can serve our customers 24 hours during week days while delivering efficiencies. Our customers can also make their booking on the Virgin Atlantic website”. In taking some of these decisions the Management of Virgin was simply insensitive to our feelings, support and contribution to their successful operation into Nigeria. I will start by reminding Virgin that they promised that their entry into Nigeria would drive down fares just as they have done in other cities. I was one of those hoodwinked by this sentiment. Virgin instead joined the fray by offering exorbitant and absolutely crazy First and Business Class fares. British Airways resisted Virgin’s entry into Nigeria and lobbied for increased frequency. Our Ministry closed her ears and signed a dual designation with the British government. That decision angered the IFC team working on a new National Carrier project that was hinged on protection and exclusivity. They consequently pulled out of the National Carrier project and we are still going round in circles in search of a solution. The Lagos route, which is Virgin’s most profitable, gives the airline the highest revenue per seat in the region due to the huge demand for the higher class and fares by the public sector, which has made other Nigerians maximise the use of the full economy seats. This egoistic appetite is at the expense of Nigerian aviation industry in general. Sadly, Virgin’s choice of the South African Center to coordinate is to our detriment, and should be reconsidered since we generate huge revenue and commensurate yield for the airline. IATA initially asked the South Africans to coordinate the Bill Settlement Plan (BSP) for travel agencies. The deluge of complaints by Nigerians over the quality of services, time and cultural differences, made them move it to Amman and in the nearest future it will be here in Nigeria. Virgin has not promoted Nigerian staff, nor allowed them to unionise like their colleagues in England. They offer 12 weeks Maternity Leave as against the 6 months approved by British government for their counterpart. Also, salaries, allowances and other emoluments offered to Nigerian staff are much lower and a mere pittance compared to their colleagues in England, including those who work in the same cabins on the Lagos –London route. The staff retrenched recently will walk away with only their December salary, since Virgin declared that gratuity is Nigerian and not British. This regarding the same people who were never paid British salary. The Ministry and NCAA should, as a matter of urgency, take up this issue with the airline. When Virgin stopped operating into Accra, they wanted to lay off Ghanaians with just the last salary, but the Ghanaian government rose up and picked the gauntlet on behalf of the hapless staff. Furthermore, Aviation Logistics Company, which purportedly represents Nigerian interest, should be investigated for culpability. We have been too magnanimous with frequency, gauge and fund repatriation. The Venezuelan, Ghanaian, Indian and Hong Kong governments that protected their citizens and interest cannot be stupid. I must not fail to commend virgin management for coming out boldly to admit they have a problem and are doing everything possible to resolve it. I will also not forget the fact that they are the first international airline operating into Nigeria to employ and sustain Nigerian based cabin crew. It is informative that Mr. Branson who is the face and founder of the airline is not the largest shareholder. He invited British citizens and corporate organizations, and recently sold a large stake to Delta Airlines, a positive example for our numerous father and son airlines that seek cheap public funds and support.