Aero to Lay Off 90% Workers to Remain in Business

Ibru family moves to repossess Airline

There are indications that Nigeria’s oldest airline, Aero Contractors, is laying off about 90 per cent of its workforce, in an apparent move to cut costs as the company struggles to stay afloat.

The layoffs to be executed in few days, was aimed at repositioning the airline to operate profitably.

THISDAY gathered that the management of the airline resolved to cut the workforce and reduce aircraft per personnel ratio in line with its growth strategies.

The approval of the airline’s Receiver Manager, Adeniyi Adegbomire SAN is being sought in this regard for it to commence issuing sack letters to those to be disengaged.

The Asset Management Corporation of Nigeria (AMCON) had intervened in the management of the airline in 2011 owing to its huge indebtedness to the defunct Oceanic Bank, which it took over.

In February 2016, AMCON fully took over the airline and appointed Adegbomire the Receiver Manager.

Meanwhile, THISDAY also learnt that the AMCON may offer the airline to its original owners, the Ibru family if it (Ibru) can pay N34 billion, N24 billion to AMCON and N10 billion to the airline’s shareholders.

There are indications that a prominent member of the family is looking to raise the funds and possibly repossess the airline.

If Aero’s plan to sack the workers goes through, over 800 personnel would lose their jobs.

Last year, the airline sacked about 1,453 workers but it later trimmed the figure to 1,100.

But its management told THISDAY on Wednesday that the unions are vehemently kicking against the planned sack of workers.

Last year, before the airline resumed operation after it shut down for three months, the unions and the airline management had resolved that substantial number of the workers would be sacked, on

the condition that they would be paid their severance package.

The workers and the unions also agreed that it was the only way to resuscitate the airline. The parties also reached an understanding that when the airline was revamped, the workers would be reabsorbed, starting from the technical personnel.

THISDAY gathered that the aviation unions are now kicking against the sack plan because Aero reneged on that promise to pay terminal benefits to those that would be sacked.

“We have concluded plan to lay off 90 percent of the workers but the unions are spoiling for a fight. We agreed last year that we would sack the workers in order to reposition the airline but we also agreed that those sacked would be paid their terminal benefits but as it is now, Aero does not have money.