in Air Transport

Nigeria's Arik Air taken over by government

Posted 13 February 2017 · Add Comment

Nigeria's state-owned Asset Management Corporation of Nigeria (AMCON) has taken control of Arik Air given the privately-owned carrier's growing inability to settle wage arrears and other debts, reports ch-aviation.

Arik Air reportedly owes AMCON more than NGN135 billion (USD429.6 million at the official bank rate) with other suppliers owed NGN10 billion (USD31.8 million). Aside from domestic debts, Nigeria's crippling foreign currency shortage has also affected Arik Air's ability to procure fuel and to pay off insurance premiums thus impacting its operations.

"Arik Airline has been in a precarious situation largely attributable to its heavy financial debt burden, bad corporate governance ... that required immediate intervention," AMCON said in a statement. “This development will also afford Arik Air to go back to regular and undisrupted operations, avoid job losses, protect investors and stakeholder funds as well as ensure safety and stability in the already challenged aviation sector."

Under receivership, AMCON has seconded a new management team to Arik to be led by local lawyer, Oluseye Opasanya. Flight operations are expected to continue unaffected.

Arik Air's senior vice president, Captain Ado Sanusi, has, however, said the airline will challenge the court order to the furthest degree, reports The Punch.

The Minister of State for Aviation, Hadi Sirika, hopes the move will provide stability. "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," he said.

* required field

Post a comment

Other Stories
Advertisement
Latest News

Etihad Aviation Group and Emirates Red Crescent support group travelling for Umrah as part of 'Year

Etihad Aviation Group (EAG) has taken part in an exciting philanthropic collaboration with Emirates Red Crescent, to support a group of 15 travellers in experiencing the holy pilgrimage of Umrah.

Family fortunes...

South African Express (SAX) and South African Airways (SAA) may be separate companies, but their corporate identities and destinies are closely intertwined. As Victoria Moores found out, both companies are battling a stagnant market

UAE Space Agency and Algerian Space Agency strengthen ties

The UAE Space Agency has signed a Memorandum of Understanding with its Algerian counterpart the Algerian Space Agency.

Boeing reports first-quarter results

The Boeing Company reported higher first-quarter earnings and operating cash flow compared to the previous year, driven by solid execution on production programmes and services.

Botswana terminal takes next step towards 2020 vision

The Government of Botswana says the construction of a temporary terminal building at Maun International Airport will be completed in May this year, although the rest of the infrastructure expansion project is due to be completed in

A new way to Scout out web booking

An innovative new charter sales platform, Jet Scout, has been introduced to the African and Middle East market. Vincent Chappard finds out why it is receiving a positive reaction.

EBACE17 SK0103240517
See us at
GroundHandling BT0303280917EBACE17 BT0103240517Aviation Festival BT25114617