AMCON Takes Over Arik Airline

The Federal Government has taken over the operations of troubled Arik Air to save it from total collapse.

Arik Air has been immersed in heavy financial debt that has threatened to permanently ground the airline, says a report on Sundiata post.

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, erratic operational challenges, inability to pay staff salaries and heavy debt burden among other issues.

These have led to the calls for authorities in the country to intervene before Arik goes under like many before it.

Asset Management Corporation of Nigeria, (AMCON), issued a statement saying: “We assure all stakeholders that the intervention is in the best interest of the general public, workers, creditors and other aviation interest groups.”

The move, which clearly underscores government’s decision to instill sanity in the nation’s aviation sector has also prevented a major catastrophe that would among other factors protect and preserve Arik Airlines as a going concern.

The development will afford Arik Airlines, which is the largest local carrier to go back to regular operations, avoid job losses, protect investors and stakeholder funds as well as ensure safety and stability in the already challenged aviation sector.

The airline would now be managed by Capt. Roy Ukpebo Ilegbodu, a veteran aviation expert under the receivership of Oluseye Opasanya.

Explaining the rationale for the latest intervention in Arik Airlines, the Minister of State for Aviation, Senator Hadi Sirika 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.”

The minister who further pledged that the federal ministry of Aviation would support the new management of the strategic carrier added that all necessary steps had been taken to ensure that there would be no undue disruption on Arik’s regular business operations or activities of other stakeholders, on account of the recent changes in the leadership and management of Arik Airline.

Similarly, Capt. Ilegbodu, under the receivership of Opasanya, SAN, has also assured both staff of the troubled airline and all other stakeholders that his appointment at Arik would among other objectives 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 Airline is known to have been facing some challenges in recent times, including a heavy financial debt burden and erratic operations.

On February 8, Arik temporarily suspended its flight operations to the John F. Kennedy International Airport, New York, United States, claiming that the two Airbus A330-200 aircraft dedicated to the route were taken to France for C check at the same time. Equally more than eight airplanes are currently grounded at the tarmac making it difficult to meet their routine commercial flights.

0