By Nse Anthony-Uko,
ABUJA, (Sundiata Post) – But for the timely intervention of the Asset Management Corporation of Nigeria (AMCON) in taking over the management of Arik Air, the carrier not have survived till June this year.
The beleaguered airline, whose current level of indebtedness is over N300 billion, with AMCON alone owed over N135 billion would have also gone into extinction like others before it rendering thousands of employees jobless and leaving the aviation sector bereft and the country bereft of any strategic carrier.
Officials of the aviation arm of the Federal Ministry of Transportation and AMCON confirmed that Arik Air was immersed in a heavy financial debt burden that was threatening to permanently ground the airline.
Besides its obligations AMCON, the airline also owes huge financial obligations to aviation fuel suppliers, insurance firms, aircraft maintenance organisations, the Federal Government and the various aviation agencies, as well as food vendors which supply refreshments for the airlines daily flight operations.
Listing the airline’s catalogue of woes, AMCON said that out of the airlines total of 28 Aircrafts, only 10 are currently operational hence the frequent flight delays and cancellations.
The other airplanes were confiscated by lessors when they were taken ‘C’ Check maintenance as a result of Arik Air’s default in its lease payments and insurance
Also, Arik owes its staff accumulated salaries and allowances of nine months, thereby having the most demotivated workforce in the sector.
The airline has for a long time, operated extremely erratic schedules not good for a strategic carrier with over 55 per cent of the load in the country with constant flight delays and cancellations without explanations or compensation.
Also the Arik brand experiencing erosion, which is difficult to rebuild
Other challenges facing the airline include negligence, which is dangerous in air transport business; Luggage pilfering and outright disappearances ; Poor corporate governance; Demotivated pilots; Poor safety measures, which is unacceptable in aviation business
It was also noted that Arik is constantly at logger head with aviation unions including the National Union of Air Transport Employees (NUATE), the Air Transport Senior Staff Services Association of Nigeria (ATSSSAN) and the National Association of Aircraft Pilots and Engineers (NAAPE)
Constant fracas between Arik Staff and irate passengers, which is embarrassing at airports (local & international); Lost patronage, market share and public confidence; inability to cope with the demands of passenger; non-remittance of the taxes of workers to relevant bodies, it also habitually flouts orders and directives of aviation agencies
The airline has been operating on a loss position for a long time, and going by history of the short lifespan of airlines in Nigeria, it is obvious that Arik is headed for extinction if nothing drastic is done quickly to save the strategic carrier, the aviation sector and thousands of jobs that would be lost if Arik dies.
AMCON however said it is coming in to stabilise the airline’s operations, ensure that it operates profitably again after which it would be sold off.
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