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AMCON, stakeholders differ over recovery, fate of Arik Air

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The fate of Arik Air as regards what to do with it has attracted mixed feelings among industry stakeholders. Industry experts though foresee a bleak future for the airlines, citing foreign investors’ loss of interest, the Asset Management Corporation of Nigeria (AMCON) that manages the carrier denies the claims, saying the carrier remains on the path of full recovery from distress.

Recall that AMCON, a special purpose vehicle of the Federal Government for the recovery of debts, took over Arik Air in February 2017. The rationale was to save the airlines from imminent collapse, citing gross mismanagement by the owners and debt in excess of N300 billion.

The Federal Government quickly injected the sum of N1 billion into its operations to stabilise the airlines. Besides paying salaries and meeting basic obligations, about nine out of 30 aircraft owned by Arik returned to operation, sustaining both local and regional operations.

However, about two years since AMCON took over, stakeholders are concerned that the airline is still moribund, and it explains why the carrier is a hard sell to new investors. An inside source, who preferred anonymity, told The Guardian that improving the fortunes of the airlines had been difficult, “not for the fault of AMCON or the management team, but for the rot they met on ground.

The Guardian, January 24, 2019

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