By Olumide Ohunayo
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.
