in Business & Finance

Arik Air gets $4.7 million injection from AMCON

Posted 10 May 2017 · Add Comment

Arik Air has received an injection of NGN1.5 billion (USD4.7 million) from the Asset Management Corporation of Nigeria (AMCON) since being taken over by the state-owned body, reports ch-aviation.

AMCON took over management of the airline in February this year, after concerns that the business was failing. CEO Roy Ilegbodu said that when AMCON took over, it had paid out between NGN60 - 75 million (USD188,000 - 236,000) in customer refunds per week.

Ilegbodu was full of praise for AMCON's role, and was critical of Arik Air's previous management. The new management team has been working on appeasing creditors and paying outstanding staff salaries. Ilegbodu added that it had been troubling to discover just how few operational aircraft the airline had.

"It was quite interesting and disturbing for an airline with 30 airplanes on its books with only 10 functional," Ilegbodu said.

Arik Air has scaled back its international operations in a bid to reduce operating costs, and Ilegbodu said that they were in no hurry to scale back up. He said they would wait until the situation with creditors was normalised and a KPMG audit had been completed.

* required field

Post a comment

Other Stories
Advertisement
Latest News

RwandAir enables Maestro, Discover, Diners and JCB cards for online tickets payments

RwandAir enables Maestro, Discover, Diners and JCB cards for online tickets payments

ADB Safegate lights up runway at Ghana's Tamale Airport

ADB Safegate has installed the runway lights at Ghana's Tamale Airport Upgrades airport using CAT II LED airfield ground lighting to enable night operations.

Honeywell helps aircraft operators comply with upcoming mandates

Honeywell has met the performance standard for transponders required by the European Aviation Safety Agency to make air traffic management safer and more efficient.

Air Peace to add ERJ-145s

Nigeria's Air Peace will add an undisclosed number of ERJ-145s to its current fleet of four B737-300s, five B737-500s, and one Do328-300, reports ch-aviation.

Air Senegal orders two ATR72-600s

Air Senegal has ordered two ATR72-600s from Avions de Transport Régional as it prepares to commence operations later this year, reports ch-aviation.

CemAir signs LOI for two Q400s

CemAir has signed a Letter of Intent (LOI) with Bombardier for two Dash 8-400/Q400s, reports ch-aviation.

Honneywell ADS-BSK310517
See us at
Global Aerospace BT28218GroundHandling BT0303280917Aviation Africa BT18418