Arik Air challenges AMCON Takeover

The Asset Management Corporation of Nigeria (AMCOM), on Thursday, announced that it is taking over the debt-ridden Arik Air, the country’s largest airline.

The takeover was announced in an official statement issued yesterday by the corporate communications department of the asset management company.

According to AMCOM, the takeover is only a respite coming the way of Arik Airlines which is currently immersed in heavy financial debt burden that is threatening to permanently ground the airline.

“For some time now, 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, which led to the call for authorities in the country to intervene before Arik goes under like many before it,” it stated.

However, the management of the beleaguered airline reacted swiftly to the development stating its determination to challenge its takeover by AMCON.

This was disclosed by the airline’s Deputy Managing Director, Captain Ado Sanusi, during a media briefing at the airline’s headquarters in Lagos by the AMCON receiver manager and his team and the management of Arik Air.

Speaking during the media briefing, Capt. Sanusi stated that Arik has agreed to comply with the court order directing AMCON to take over the management of the airline, but that the airline will challenge the decision to the highest order in the land.

In his words: “We were served with the court order this morning. Arik Air will comply with the order. The airline has the right to challenge the order and will challenge the court order. We might disagree on certain issues, but we have agreed that Air operations should continue and not be paralysed.

We will make our position known to our various stakeholders and partners, we will challenge this order to the highest level.” But explaining further on the reason for its action, AMCOM pointed out that 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, AMCOM said, 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 Mr. Oluseye Opasanya, SAN.

Explaining the rationale for the latest intervention in Arik Airlines, the Minister of State for Aviation, Senator Hadi Siriki, 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 of the airline’s regular business operations or activities of other stakeholders, on account of the recent changes in its leadership and management.

In the same vein, Capt. Ilegbodu, 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 and reliability as well as secure the operational history of the airline before all those were eroded.

Speaking earlier, the receiver manager, Mr. Opasanya, SAN, stated that the management of AMCON, having consulted widely with the government authorities, has decided to appoint him the receiver manager to superintendent over the affairs of Arik Air to sustain, and improve its services.

He said AMCON will ensure that it support the airline with people of great knowledge and experience to improve the fortunes of the airline.

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.