Airline industry quakes as Aero suspends operations in Nigeria

With effect from tomorrow (Thursday) all staff of Aero Contractors will precede on compulsory leave as the airline has announced a suspension of its scheduled operational services.

This was made known by the Chief Executive Officer, Capt. Fola Akinkuotu, who said the development was part of the strategic business realignment to reposition the airline and return it to the part of profitability.

But a very close source said the airline was being compelled by the present harsh economic realities, which had seen it battling with AMCON over its huge unserviceable debts.

It will be recalled that as part of its resolve to ensure the airline survived, AMCON had appointed Mr. Adeniyi Adegbomire as Receiver Manager in February 6, 2016, with the aim of turning the airline around after the management outfit made public its first intervention in the embattled company in March 2011.

Read also: Distressed Aero boots out 100 workers

The toxic loan, that the airline allegedly owed banks and other institutions is said to run into several millions of dollars, and to ensure that it continued providing services to various clients and the general public, the appointment of the receiver manger became imperative, said an official.

Still, Akinkuotu said despite the intervention, the airline had continued to be faced with grave challenges in the past six months, which negatively impacted on its scheduled services operations.

“The impact of the external environment has been very harsh on our operational performance, hence management decision to suspend scheduled services operations indefinitely effective September 1, 2016, pending when the external opportunities and a robust sustainable and viable plan is in place for Aero Contractors to recommence its scheduled services.

“The implication of the suspension of scheduled services operations extends to all staffs directly and indirectly involved in providing services as they are effectively to proceed on indefinite leave of absence during the period of non-services, the Chief Executive Officer stated.

By Emma Eke…

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