Air Nigeria lost $372 million dollars in the five years it operated in partnership with Virgin Atlantic under the Virgin Nigeria name.
Virgin Nigeria was set up with $50 million in capital following the liquidation of Nigeria Airways in 2005. After incurring a loss of $372 million dollars in five years, Virgin Atlantic has withdrawn from the joint venture. A Nigerian businessman is currently investing on the airline.
Based on a technical cooperation agreement signed with Ethiopian Airlines last year, Ethiopian is assisting Air Nigeria in providing technical assistance by assigning Ethiopian executives. According to Kinfe Kssaye, CEO Air Nigeria, the airline is implementing a turn around strategy that is reducing costs of the airline.
“We are reducing costs by renegotiating with lessors and fuel suppliers,” said Kinfe.