Why we took over Arik - AMCON

With just less than 72 hours after it took over Arik Air, Asset Management Corporation of Nigeria (AMCON) said its intervention is aimed at providing assistance to the airline for smooth flight services.

This was contained in a statement yesterday.

Investigations revealed virtually all of Arik’s trade creditors are being owed staff salaries.

The airline workers have not been paid for between 4- 6 months.

It was also gathered that of the 28 aircraft in Arik’s fleet, only 10 are in operation.

It was also learnt Arik has debts in excess of N300 billion to some banks, excluding fuel suppliers, lessors and maintenance companies.

AMCON said the airline’s operations are continuing while the insurance cover, which would have expired today, has been sorted out.

The statement reads: “Trade creditors and fuel marketers have been assured that all indebtedness will be looked into.

“They have offered to support the new management to get operations run smoothly.

“Previously the fuel suppliers had suspended credit facilities but the airline is working to ensure steady fuel supply, which had been the cause of the airline’s erratic operations.

“Flight schedule may therefore be realigned to match the 10 aircraft in the fleet while sorting out the myriad of problems confronting the airline.”

A source close to the airline confirmed the management is looking to stabilise operation by scaling down flights based on the number of serviceable aircraft at its disposal until more aircraft return from C-check and maintenance yards abroad.

It was gathered a new schedule will be announced in the next few days to accommodate its existing fleet of 10 aircraft.