FG takes over Arik Air over huge debts
The Asset Management Corporation of Nigeria (AMCON) yesterday took over management of the distressed Arik Airlines.
A statement from AMCON said the development would afford Arik Air, which is the largest local carrier, to go back to regular and undisrupted operations.
AMCON appointed Capt. Roy Ukpebo Ilegbodu, an aviation expert under the receivership of Mr. Oluseye Opasanya, SAN.
Explaining the rationale for the latest intervention in Arik Airline, the Minister of State for Aviation, Senator Hadi Siriki said, “We believe that this appointment is timely and will stabilize the operations of the airline. This will enhance the long term economic value of Arik Air and revitalize the airline’s ailing operations as well as sustain safety standards, in view of Arik Air’s pivotal role in the Nigerian aviation sector.”
But Arik Air has vowed to challenge the decision to the highest authority in the land.
Deputy Managing Director of the Airline, Capt. Ado Sanusi, told newsmen that the airline had complied with the court order authorizing AMCON’s action.
He spoke just as a detachment of mobile policemen were mobilized to the head office of the airline in Lagos for takeover by the new management.
Sirika said the government will support the new management to ensure that there would be no undue disruption on Arik’s regular business operations or activities of other stakeholders.
In the same vein, Capt. Ilegbodu, under the receivership of Opasanya, SAN has also assured both staff of the airline and all stakeholders that his appointment would enhance the value of Arik, improve customer experience, and sustain the safety, reliable and secure operational history of the airline before all those were eroded.
Arik Air has been in a precarious situation largely attributable to its heavy financial debt burden, bad corporate governance, erratic operational challenges and other issues.
Yesterday, Arik temporarily suspended its flights to New York, United States, saying the two Airbus A330-200 aircraft dedicated to the route have been taken to France for ‘C’ check at the same time.
Equally more than eight aircraft are currently grounded making it difficult to meet their routine commercial flights.
Daily Trust reports that in February last year, AMCON dissolved the Board of Aero Contractors and appointed a a new management to oversee the affairs of the airline.
AMCON, which is the majority shareholder and creditor of Aero Contractors, said the takeover was to “sustain and improve the robust and premium quality service of the airline”.