The Asset
Management Corporation of Nigeria (AMCON) has denied reports that it was
negotiating with Ethiopian Airlines to manage Arik Airline. The corporation
debunked the report in a statement signed by Mr Jude Nwauzor, Head of Corporate
Communications, in Lagos. Arik Air Nwauzor said AMCON was not aware of any
current discussion or negotiation with the management of Ethiopian Airlines
regarding Arik Air Ltd. “It is on record that the Receivership Team has within
the period stabilised the operations of the airline, marked by stability of
schedules; improved On-Time-Performance (OTP) and revamped customer service
among others. “Today, the Airline has regained its dominance as the most
reliable carrier in the country with growing passenger patronage and confidence.
“The general public and all stakeholders will be kept duly informed on issues
relating to the airline’s divestment ,” Nwauzor said. The News Agency of
Nigeria (NAN) recalls that Arik was placed under receivership in February,
following the airline’s inability to repay debts in excess of N300 billion to
AMCON and other creditors within and outside the country. Nwauzor had earlier
said Arik would be managed by Capt. Roy Ilegbodu, an aviation expert under the
receivership of Mr Oluseye Opasanya (SAN). He said the government decided to
intervene because Arik Air is immersed in heavy debt burden that is 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,’’ he said. Nwauzor
said the move underscores government’s decision to instill sanity in the
nation’s aviation sector. According to him, the development will afford the
airline 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.
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