FG proposes conversion of Arik and Aero Contractors into national airlines
The Asset Management Corporation of Nigeria (AMCON) has announced that Arik and Aero Contractors airlines may be merged and converted into a national carrier.
AMCON Managing Director/Chief Executive Officer, Gbenga Alade, made this statement on Monday during an interactive session with media executives in Lagos.
According to Alade, both Arik and Aero Contractors are heavily indebted and may be unable to repay their debts.
He stated that the corporation had previously proposed the idea of converting Arik and Aero Contractors into a national carrier to the former aviation minister, but it was rejected.
“The former management of AMCON proposed converting Arik and Aero Contractors into a national carrier, but the former aviation minister did not accept the idea. We will present it again, as we believe it is the best option.”
“Unfortunately, the special purpose vehicle (SPV) created by the former management of AMCON for the conversion of Arik and Aero Contractors into a national carrier has been sold. However, we can create another SPV for this purpose,” he explained.
Recall that the former Minister of Aviation, Hadi Sirika, had elicited concerns among stakeholders over the ownership arrangement, which granted Ethiopian Airlines a 49 percent equity stake in the company.
The Federal Government held a 5 percent equity, while a consortium of three Nigerian investors owned 46 percent.
Reacting to the deal in June 2023, the House of Representatives urged the Federal Government to suspend the operations of Nigeria Air, describing it as fraudulent.
In August 2023, the incumbent Minister, Festus Keyamo, announced that the national carrier project was suspended until further notice.
Keyamo said, “It remains suspended. It was never Air Nigeria. It was not Air Nigeria. That’s the truth. It was only painted Nigeria Air. It was Ethiopian Airlines trying to flag our flag.
“If it is so, why not allow our local plane to fly our flag? So nobody should dispute that it was Nigeria Air.
“Air Nigeria must be indigenous, must be wholly Nigerian, and must be for the full benefits of Nigeria, not that 50 per cent of the profit is for another country.”
Recently, a Federal High Court sitting in Lagos halted the sale of Nigeria Air to Ethiopian Airlines.
The court declared the sale of Nigeria Air shares to Ethiopian Airlines null and void after addressing the issues in the suit.
Justice Ambrose Lewis-Allagoa ordered that the Federal Government’s plans to establish a national carrier, Nigeria Air, be halted.
The judgment was delivered in favor of the Registered Trustees of the Airline Operators of Nigeria and five other aviation industry stakeholders.
At the briefing on Monday, Alade said the current status of Arik and Aero Contractors had been giving him sleepless nights.
“Believe me, it is a very difficult problem to resolve, and it is giving me sleepless nights, particularly Arik.
“Arik is owing so much that they cannot pay,” he stated.
Proofreading by Uchechi Ojo, Sub-editor at Neptune Prime.
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