Int’l creditors may sue AMCON for scaling down Arik operations

A major crisis is returning to the assumed settled issues concerning take-over of Arik Airline by the Assets Management Corporation of Nigeria (AMCON), as stakeholders bicker over the scaling down of the airline’s operations by 35 per cent in the past two weeks.

Revenue potential of the airline is expected to drop from its 50 per cent, prior to AMCON acquisition of the airline, to about 45 per cent.

The situstion has sparked off another agitation by staff and investors of the airline, going by feelers from a cross section of the various interest groups in the sector.

There are also feelers that international creditors of the airline unhappy with the latest development may drag AMCON, and by extension, the federal government to court.

“International financiers and other creditors of the airline have already concluded plans to sue the Federal Government if there is no evidence of payment of all or part of their money in the airline in the next one month.

“Remember that as at the end of January, workers’ salary since November 2016 were yet to be paid,” the secretary of the workers union, Comrade Ayodele Adeoye said.

It could be recalled that the receiver- management of the airline had on February 20 2017 announced that it was reviewing some of the international routes that Arik was flying, among them the New York and London routes.

Though it did not give reasons for the decision, sources said the yet to be paid outstanding insurance cover of the fleet of the airline was one of the major factors.

Also, there are speculations that some staff of the company may still be laid off, despite assurances from management to the restive workers that they will not be sacked.

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By March 2017, all Arik Airline operations will be less than 30 per cent, a situation that is said to have raised concerns among international creditors to the airline, who fear that such would make it difficult for them to recover their money stock in the company.

It was also learnt that the airline would reduce its 150 flights to about 25 a day as part of its reorganisation programme .

A source revealed that only 10 of the airline’s fleet are now in operation, including two Bombardier, CRJ 900, one Bombardier Q400 and five Boeing 737.

The Q400 is on a dedicated service with Chevron, so the airline has in essence about eight operating aircraft.

Immediately after AMCON had taken over the company, it suspended the international operations of the airline and the lean fleet size has also forced it to cut back its domestic and regional operations.

 

 

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