Nigeria has selected Virgin Atlantic as the partner for its new national carrier, Aviation Minister Isa Yuguda announced on 1 September 2004 following the weekly cabinet meeting in Abuja. The airline, to be called Virgin Nigeria Airlines, will replace Nigeria Airways, which was wound down after prolonged mismanagement and corruption.
The venture is capitalized at $50 million. Nigerian investors will contribute $25.5 million and hold a controlling 51 percent stake, while Richard Branson's Virgin Atlantic will put in the remaining $24.5 million and supply technical expertise.
The decision ends a competitive process. South African Airways had been named the original strategic investor earlier in 2004, but negotiations broke down and the bid was re-advertised. South African Airways re-entered when the process reopened but finished second to Virgin.
The new carrier is expected to operate the Lagos-London and Lagos-New York routes previously flown by Nigeria Airways. Flights between Europe and Lagos, Africa's largest city and a center for Gulf of Guinea oil traffic, are among the world's most profitable air corridors and are routinely overbooked. Air France, Lufthansa, British Airways, and KLM also serve the route.
Historical summary. TurkishPress restated this AFP wire report, first published in September 2004, in its own words.