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AMCON finally takes over Arik Air

Asset Management Company of Nigeria (AMCON) has taken over Arik Air, which has been under financial stress.

Consequently, AMCON has appointed a new management team led by Capt. Roy Ukpebo Ilegbodu, an aviation expert, under the receivership of Mr. Oluseye Opasanya, SAN. The new management will rein in good corporate governance  to and the airline financial stability.

Indeed, in over a year, Arik Air has been under many challenges which industry experts linked to bad management, erratic operational challenges, inability to pay staff salaries and heavy debt burden.

AMCON has, however, indicated that the new step is against the backdrop that the airline controls more than 50 percent of the nation’s aviation business, thus, its collapse will have a ripple effects on the industry.  A statement by AMCON states:  “The development will afford Arik Airlines, which is the largest local carrier to go back to regular and undisrupted operations, avoid job losses, protect investors and stakeholder funds as well as ensure safety and stability in the already challenged aviation sector.”

Only on Wednesday, Arik Air suspended its flight operations to the John F. Kennedy International Airport, New York, United States. The airline said the two Airbus A330-200 aircraft dedicated to the route were taken to France for C check at the same time. More than eight aircraft are said to be grounded in the fleet of the airline, which accounts for its inability to meet its domestic flight schedule.