AMCON TAKES OVER ARIK AIR OVER N200BN DEBT

….Airline Vows To Challenge Govt's Action In Court

The timely intervention of Assets Management Corporation of Nigeria (AMCON) in the taking over of Arik  Air would help to save over 2,000 jobs as the carrier is seriously ailing.

The agency took over the management of the airline yesterday. Arik Air has, however, vowed to challenge AMCON's decision in court.

An AMCON source, who spoke with New Telegraph, put the conservative indebtedness of the carrier at over N200 bil lion. Besides, the Federal Airports Authority of Nigeria (FAAN) recently

claimed that the carrier owes it N12.5 billion, adding that the airline has consistently failed to pay up. But the airline had consistently denied owing the aviation agency.

Arik is also said to owe the Nigerian Civil Aviation Authority and the Nigerian Airspace Management Agency (NAMA) debts running into N10 billion, while oil marketers are also said to worry about the airline's indebtedness said to be humungous.

Late last year, aviation unions directed the commencement of a joint strike at Arik Air over the airline's failure to pay seven months' salary arrears and other anti-labour practices. Mr. Jude Nwauzor, AMCON's spokesperson, justified the takeover of the airline. He said the government decided to intervene because Arik Air is immersed in heavy debt burden that was threatening to ground its operations.

"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," AMCON said. The move, Nwauzor said, clearly underscores government's decision to instill sanity in the nation's aviation sector.

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

Consequently, the airline would now be managed by Capt. Roy Ukpebo Ilegbodu, a veteran aviation expert under the receivership of Mr. Oluseye Onasanya (SAN).

In the same vein, Capt. Ilegbodu has also given assurance to 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.

"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.

"Yesterday, 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 have been taken to France for C check at the same time. "Equally more than eight aircraft are currently grounded at the tarmac, making it difficult to meet their routine commercial flights,'' Ilegbodu said.

Also speaking, Opasanya said AMCON was on a rescue mission to reposition the embattled airline. Explaining the rationale for the latest intervention in Arik Air, the Minister of State for Aviation, Senator Hadi Siriki said: "We believe that this appointment 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 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.

Meanwhile, the management of Arik Air has vowed to challenge the taking over of the airline by AMCON in court. Capt. Ado Sanusi, Senior Vice President, Arik Air made the disclosure at a joint news briefing with the newly appointed receiver manager, Opasanya and Ilegbodu.

Sanusi said the Arik Management had been served with a valid court order empowering AMCON to take over the affairs of the airline. "As responsible citizens, we have obeyed the court order which appointed the Olaniwun Ajayi (SAN) as the receivership manager.

"We will comply, but I want to make it clear that we have a right to challenge the court order. "In the coming days, we will make our position known.

It is a court order and we can challenge it and we will challenge it to the highest court of authority," Sanusi said. He added that while the legal battle would be on one front, the parties had agreed that Arik Air would continue to run without any disruption.

-New Telegraph