US embassy cable - 04LAGOS2025

UNCLAS SECTION 01 OF 02 LAGOS 002025 
 
SIPDIS 
 
DOT FOR FAA AND TSA; BRUSSELS, DAKAR FOR FAA 
 
E.O. 12958: N/A 
TAGS: EAIR, ELAB, EINV, NI, PGOV 
SUBJECT: NIGERIA SIGNS VIRGIN AIRLINES DEAL; AVIATION 
UNION VOWS TO PREVENT AIRCRAFT FROM FLYING ABSENT 
PAYMENT OF BACK WAGES 
 
Reftel: Lagos 1905 
 
1.  Summary.  The Government of Nigeria signed 
September 28 a partnership deal between Nigeria Airways 
(NA) and Virgin Atlantic Airways (reftel), creating 
Virgin Nigeria.  The new carrier anticipates beginning 
operations early 2005.  The Federal High Court ordered 
liquidation of NA assets July 9.  NA employees have 
been demonstrating outside the domestic terminal of 
Murtala Muhammed International Airport (MMIA) for the 
past several days demanding payment of back 
wages/pensions and that the new carrier retain some 
existing employees.  The Aviation Unions Grand Alliance 
(AUGA) has vowed to prevent the new carrier from flying 
pending resolution of these issues.  Airport operations 
are not impacted by the current NA demonstration. End 
summary. 
 
Hurried Virgin Nigeria Signing Ceremony 
 
2. (U) GON officials and Virgin Group president Richard 
Branson signed the Virgin Nigeria partnership September 
28.  It was initially planned that President Obasanjo 
and Branson would ink the deal during a televised news 
conference on Nigeria's October 1 Independence day. 
The public's lukewarm reception to the Virgin deal and 
on-going protest by NA employees may have played a role 
in the government's more understated publicity relating 
to the deal. 
 
Police Lock Out Nigeria Airways Employees 
 
3. (U) Disgruntled NA employees have been rallying at 
company headquarters outside the domestic terminal of 
Murtala Muhammed International Airport since Monday, 
September 27.  The employees are demanding payment of 
back salaries and pensions. 
 
4. (U) The Nigerian police quietly took up watch at the 
NA headquarters Sunday September 26.  Though NA is 
operationally defunct, according to Assistant General 
Manager for Public Affairs, Obi Aseme, many of its 
employees are still reporting to work.  When employees 
arrived on September 27 to report for duty, police 
blocked their entry.  The court-appointed liquidator of 
NA assets, Babington Ashaye, reportedly asked for 
government assistance in assuring the take over of the 
property after NA employees foiled several previous 
attempts.  The group of employees quickly transformed 
into an emotionally charged demonstration as the NA 
employees worried the shut out signaled that their 
unpaid wages and pensions would never be recouped. 
While the lock-out has been mostly peaceful, on 
September 30 police discharged tear gas in an 
unsuccessful attempt to disperse the crowd. 
 
Umbrella Aviation Union Vows To Ground New Carrier If 
Labor Demands Are Not Met 
 
5. (U)  Aviation Unions Grand Alliance (AUGA) 
representatives vowed to prevent the new Virgin Nigeria 
carrier from operating, pending satisfactory resolution 
of NA employees compensatory claims.  AUGA 
representatives told Consulate Lagos approximately 1600 
former NA employees and 2300 pensioners have not been 
paid in 18 months and 26 months respectively.  The 
representatives fear the Virgin Nigeria deal will not 
only ensure that NA employees and pensioners are never 
paid back payments, but also result in layoffs of large 
numbers of NA employees.  AUGA sees the Virgin Nigeria 
deal as a bad solution. They expect the new carrier 
will repatriate most profits to the UK and that it will 
hire few Nigerian employees.  (Note: AUGA is the 
umbrella labor organization of the National Association 
of Aircraft Pilots and Engineers (NAAPE), Air Transport 
Services Senior Staff Association of Nigeria (ATSSSAN), 
and National Union of Air Transport Employees (NUATE) 
End Note). 
 
Security at Murtala Muhammed International Airport Not 
Compromised 
 
7. (U) The NA demonstration is contained in an area 
outside of airport property near the MMIA domestic 
terminal.  Reports of police presence range from 200- 
300 armed mobile police officers.  Tensions are 
reportedly high at the demonstration site.  According 
to Federal Aviation Authority of Nigeria contacts, the 
tear gas used September 30 affected a large area around 
the domestic terminal.  However, there are no reported 
disturbances of airport use, local vehicular traffic, 
or flights. 
 
8. (U) Comment: The outstanding labor issue casts a 
shadow over the Virgin Nigeria deal and could possibly 
affect the schedule to begin operations early 2005. 
Thus far the new partnership team has not stated its 
position on whether it is prepared to settle back 
payments owed to NA employees and pensioners.  Over the 
longer term, Virgin Nigeria's possible lack of access 
to the Nigeria-U.S. transatlantic route could be a much 
larger obstacle.  End comment. 
 
Browne