Daily Independent (Lagos)
By Abel Orukpe Correspondent, Lagos
18 September 2009
"FROM TODAY, the name 'Virgin Nigeria' ceases to exist. We are now called Nigerian Eagle Airlines. We are not just changing the name of the airline; we are creating a brand. We are creating a brand of airline rather than a product."
With these words, the Managing Director of Nigerian Eagle Airlines, (formerly Virgin Nigeria Airways), Captain Dapo Olumide, unveiled the long awaited new name of the airline.
The unveiling of the new name is a major step in the re-branding process, which began late 2008, with the suspension of the South African and London routes.
Speaking at a press briefing on Thursday at the Murtala Muhamed Airport Lagos, Olumide, who unveiled the logo, said the re-branding process is not just about changing the name, but creating a sustainable brand that would stand the test of time.
He stated that the re-branded airline has put in place a five-year plan to restructure and stabilise the airline to compete favourably with other airlines, adding that one of the first things was to right size the work force.
On the controversial 49 per cent equity belonging to Richard Branson, Olumide said the shares are still there, and that Branson has the right to sell his shares just like any other private persons.
The airline, he noted, is a premium airline and that for now it is going to concentrate on the domestic and regional routes. He further explained that the airline would not commence operation into the London and American routes.
He said that the new aircraft, painted with a new logo will start operations in the country from Friday.
"We are painting the aircraft one by one. It is a gradual change; we will go from airport to airport and from region to region. It will take time and money, but I cannot tell you how much the entire re-branding will cost.
"We are realigning our regional route network and flying only commercially viable routes because we are not an NGO and our aim is to make money for our shareholders. However, our five-year flying plan also includes international routes to the United States of America and Europe, but for now we are concentrating on our domestic and regional operations," he explained
Commenting on how the airline would source for funds and the debt it owes some banks, the chief executive officer said the airline is expecting an investment package through private placement that would come up in the next six weeks.
"We have an investment package on the way right now and we are going to have private placement in the next six weeks. We are talking to other potential investors outside the country and the chief financial offer has just come back from a trip where he has had discussions with another country, not another airline.
"A private placement memorandum would be released in about two weeks; we've already met at the sub-committee level and it's going to be pushed out in the next two weeks," he said.
On the bank debt, he added: "If we had a problem with the debt, it would certainly not be in renaming the airline; it would certainly not be in buying new aircraft and it would not be in doing inspections that we are doing right now because the first priority will be paying up your debt, but the debt is a mild debt and a serviced debt so there is nothing to worry about."
The airline's problem began when the federal government ordered it to relocate its domestic operations from the international wing of MMA, Lagos to the new terminal MMA2.
Not comfortable with government's action, the airline initially refused to relocate but instead headed for the court to stop the government and its agent from enforcing the relocation order.
This did not yield any fruitful result, as it was forced to move but not after Branson threatened to withdraw his shares from Virgin Nigeria.
Branson again was alleged to have written a letter to President Umar Yar'Adua, alleging that the government has reneged in the agreement reached between the two parties.
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