The
Federal Government has taken over the operations of troubled Arik Air to save
it from total collapse. Arik Air has been immersed in heavy financial debt that
has threatened to permanently ground the airline.
The
Airline, which carries about 55 percent of the load in the country, has been
going through difficult times that are attributable to its bad corporate
governance, erratic operational challenges, inability to pay staff salaries and
heavy debt burden among other issues. These have led to the calls for
authorities in the country to intervene before Arik goes under like many before
it.
Asset
Management Corporation of Nigeria, (AMCON), in a statement said: “We assure all
stakeholders that the intervention is in the best interest of the general
public, workers, creditors and other aviation interest groups.”
The
move, which clearly underscores government’s decision to instill sanity in the
nation’s aviation sector has also prevented a major catastrophe that would
among other factors protect, and preserve Arik Airlines as a going concern.
The
development will afford Arik Airlines, which is the largest local carrier 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.
The
airline would now be managed by Capt. Roy Ukpebo Ilegbodu, a veteran aviation
expert under the receivership of Oluseye Opasanya. Explaining the rationale for
the latest intervention in Arik Airlines, Senator Hadi Siriki, minister of
State for Aviation, said, “We believe that this appointment is timely and will
stabilize the operations of the airline.
“This
will enhance the long term economic value of Arik Air and revitalize 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 have 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.
Similarly, Capt. Ilegbodu, under the receivership of Opasanya, SAN has also
assured 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 Airline has been in a precarious situation largely
attributable to its heavy financial debt burden, bad corporate governance,
erratic operational challenges and other issues, that required immediate
intervention in order to guarantee the continued survival of the Airline.
On
February 8, 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 aircrafts are currently
grounded at the tarmac making it difficult to meet their routine commercial
flights.
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