AMCON Takes Over Arik Air
The Asset Management Corporation of Nigeria) AMCON) on Thursday said it has taken over the assets of Arik Air and sacked its management.
AMCON spokesperson, Mr. Jude Nwauzo who confirmed the development to newsmen in Lagos said the airline will now be managed by Capt. Roy Ukpebo Ilegbodu, an aviation expert under the receivership of Mr. Oluseye Opasanya, SAN.
On reason for the takeover, Nwauzo said government decided to intervene due to huge debt incurred by the carrier.
“For some time now, the airline, which carries about 55 per cent of the load in the country, has been going through difficult times that are attributable to its bad corporate governance and erratic operational challenges.
“Others are inability to pay staff salaries and heavy debt burden among other issues, which led to the call for authorities in the country to intervene before the airline goes under like many before it,’’ he said.
Confirming the development, Minister of State for Aviation, Sen. Hadi Sirika, in another statement further explained the rationale behind the intervention of the government in the troubled airline.
Sirika said: “We believe that this takeover is timely and will stabilise the operations of the airline. This will enhance the long term economic value of Arik Air and revitalise the airline’s ailing operations as well as sustain safety standards, in view of the airline’s pivotal role in the Nigerian aviation sector.’’
According to the minister, all necessary steps have been taken to ensure that there will be no undue disruption of the airline’s regular business operations or activities of stakeholders, on account of the recent changes in its leadership.
The move he said would also improve customer experience, and sustain the safety, reliability of the airline before all those values were eroded.
“As a matter of fact, 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. This required immediate intervention in order to guarantee the continued survival of the Airline,” he said.
Arik temporarily suspended its flight operations to the John F. Kennedy International Airport, New York, United States, on Wednesday claiming that the two Airbus A330-200 aircraft dedicated to the route have been taken to France for C check at the same time.
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