AMCON’s takeover of Arik, Aero airlines, the best decision —MD/CEO

The Managing Director/Chief Executive Officer of Asset Management Corporation of Nigeria (AMCON), Mr Ahmed Kuru has described the take-over of Arik Air and Aero Contractors Airlines by the government organ as the best decision taken to keep the carriers from imminent collapse.

Kuru who spoke in Lagos, said if not for the takeover of the two Airlines that they would have gone under due their huge indebtedness.

While insisting that AMCON’s mission in the airlines fell in line with its mandate as a stabilising and revitalising tool in the economy, declared that since AMCON took over the management of the two airlines that stability had been attained in their flight operations.

He said AMCON’s mission in the airlines was in discharge of its mandate as a stabilising and revitalising tool in the economy.  According to Kuru, at the point of intervening in Arik, the airline was already witnessing  a high spate of flight cancellations of up to 40 per cent of its on-time performance (OTP) which he said measure the promptness of schedule flights in Arik Air at the time of take over which had fallen to as low as 15 per cent.   His words: ‘’If AMCON had not taken over Arik Air last year,  the airline would have liquidated, as its workers, including pilots, were owed salaries, in some cases, up to six months.

“Staff morale was therefore, understandably low. Several service providers, including fuel marketers, maintenance and spare part companies were withdrawing services or were unwilling to extend credits. There were indeed, significant concerns at various governmental circles for safety and the possible impact of the collapse of the company on the economy.”

Maintaining that the take-over of Arik and Aero Contractors Airlines by AMCON was not meant to destroy the companies but to add value to their operations, Kuru added: “We are glad to report that this position has been largely arrested. Cancellations are down to four per cent, in time departure is over 60 per cent, all owed salaries of  staff members are fully paid.

“Suppliers are being paid as at when due. This, of course, has come at a cost to AMCON, though the Central Bank of Nigeria and local banks suppoted the intervention.  “As a major policy drive of this government, we were able to save over 3,000 direct jobs and hundreds of indirect jobs in the airline industry. We are, indeed, proud to have played this important role.

“AMCON  does not wish to be in the airline business or, indeed, any business apart from its legal mandate. So, AMCON will be willing to exit the firms if the owners of the companies pay the debts owed.

“Where this does not happen, the Corporation will seek to strengthen the intervened companies and undertake a responsible exit”.