The executive control of Arik Air has been taken over by the Asset Management Corporation of Nigeria (AMCON) to save the carrier from collapse due to its heavy financial debt burden.
The airline will now be managed by Capt. Roy Ukpebo Ilegbodu, a veteran aviation expert with more than 30 years experience, under the receivership of Mr. Oluseye Opasanya (SAN).
With the takeover by independent management under AMCON, owned by the Federal Government, the airline stands a chance of not going under, but to rebound and give efficient services to passengers and meet its financial obligations, including paying workers’ salaries.
The change in management came after the Economic and Financial Crimes Commission (EFCC) invaded the headquarters and quizzed the Chairman, Sir Michael Arumemi-Ikhide, for several hours over alleged misappropriation of N135 billion.
A source revealed that, “Even if AMCON wants to recover the N135 billion, under the current economic crisis, how much will it realise from selling the aircraft? They’ve gone from 28 aircraft to just 10 in the fleet.”
The source further said: “N135 billion is just debts owed to AMCON. What about the $20million owed foreign partners for services or the N100million to renew its insurance?
“Besides, it has not been able to pay salaries for about seven months and everyday their passengers are stranded at all the airports where they operate. So we are trying to save them from collapse, not kill them as AMCON is often accused of.
“In fact, it is in everybody’s interest – the government, the airline and the passengers– that it continues to operate. There is no way government can allow Arik, Nigeria’s biggest airline and the only one flying the international routes, to go under.”
“The new management will examine the fundamental problems of the airline and will remain until the airline stabilises and able to meet its domestic and external obligations to all stakeholders,” the source added.
Arik Air, which is reputed as West and Central Africa’s largest carrier, was accused of bad corporate governance; erratic operations; inability to pay staff salaries; delay in renewal of aircraft insurance, and heavy debt burden to fuel marketers and aviation ancillary services, among others.
Speaking on the AMCON’s latest intervention in Arik Air for the second time, the Minister of State for Aviation, Hadi Sirika, said the development was timely and would 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 Arik Air’s pivotal role in the Nigerian aviation sector.”
The minister pledged the Aviation Ministry’s support for the new management of the strategic carrier, adding that all necessary steps had been taken to ensure that there would be no undue disruption of Arik’s regular business operations or activities of other stakeholders on account of the change in the leadership.
AMCON takes over control of Arik Air as EFCC quizzes chairman over N135b debt
