Blog Archive

Wednesday, August 27, 2008

Investment in Africa not for the faint-hearted

Virgin might dis-invest from Virgin Nigeria since the strong-arm tactics used by the Nigerian government were not to Virgin's liking. The gov't sent in goons to smash up Virgin's counters at the airport!

Many Nigerians were happy that VN brought in better schedules, better planes & safer aviation to Nigeria but regression to the old ways in Africa is not new...

I used to wonder why KQ did not expand its services to Nigeria but no wonder they are cautious about flying to Nigeria... And Nigeria might not be a very profitable market esp with the inefficiencies and corruption there. Did you know Nigeria - a huge oil exporter - imports refined oil products?

When will Africans learn that negotiations are a better way to go...

BTW, if you complain about Kenyan airlines, once you fly Nigerian 'airline matatus'.... you will never complain about Kenyan airlines!


bankelele said...

KQ made 42% of their revenue and 49% of their profit from (non-Kenya) Africa routes, and I'm sure Nigerians were big contributors to that. You take the risks, you make the profit, that's Africa for you, and I must salute Branson for taking a stab.

coldtusker said...

Not as profitable as it could/should be if not for the corruption & inefficiencies.

KQ serves multiple locations/cities in West Africa. Lagos is the only city KQ serves in Nigeria yet Nigeria's population dwarfs its neighbours.

Unless we change our attitude to investors, we will remain at the bottom.

KQ faces hostility from many African countries who resent its success YET these countries have no airline to speak of!