Airline loses Virgin brand

Dakar - The Virgin name will disappear from Nigerian flag carrier Virgin Nigeria next month as British billionaire Richard Branson's Virgin Atlantic cuts its ties with the firm, an industry executive said on Sunday.

Virgin Atlantic is looking to sell its 49% stake in the Nigerian airline, for which it paid around $25 million in 2005. A technical partnership ended last week and Virgin Atlantic staff have finished their secondments, the source said.

"It is an interesting turning point. It is like the parent is now letting the child go off on its own," the senior executive, who has links to Virgin Nigeria but asked not to be named, told Reuters.

The Virgin Nigeria board is due to meet next week to finalise the name change, with possibilities including "Air Nigeria" and "Nigerian Eagle", the source said. He said the company had until July 7 to rebrand under a deal with Virgin Atlantic.

Virgin Nigeria could not be reached for comment. Virgin Atlantic declined to comment on the planned changes but said it supported Virgin Nigeria's broad strategy.

"Virgin Nigeria is embarking on a very clear strategy to focus on the domestic and regional market and we support that," Virgin Atlantic communications director Paul Charles said.

"Meanwhile we remain open to offers for our 49% share of the company," he added.

New CEO Dapo Olumide, a former banker with a long list of contacts in the Nigerian financial industry, takes over in mid-June with a top priority being to secure around $30 million in long-term funding, the industry executive said.

Virgin Nigeria in January suspended its loss-making long haul flights to Britain and South Africa in order to focus on its domestic and regional operations within West Africa.

- Reuters