Virgin Atlantic Airways Ltd dissolves Kenyan subsidiary
Low passenger numbers and poor timing slots have played a part in prompting Richard Branson’s Virgin Atlantic Airways Limited to dissolve its Kenyan subsidiary.
The company which launched flights between Nairobi and London six years ago has recalled its registration license and followed the necessary protocols laid down by the Companies Act to dissolve the business.
The globally renowned air passenger company stopped flights between Nairobi and London last September following an earlier announcement in May of the intention to end operations.
At that time Branson stated that high fuel prices and taxes also played a part in the ailing Kenyan company’s demise.
Between 2007 and2012 fuel prices had doubled and the Air Passenger Duty charged in Britain had risen by more than 20 percent making effective trading difficult for the company.
Chief Commercial Officer at Virgin Atlantic, Julie Southern said: “These are still challenging times for the airline industry and we have to deploy our aircraft to routes with the right level of demand to be financially viable.”