AMCON to sack 1,500 Arik Air staff over low revenue

Indications have emerged that no fewer than 1,500 Arik Airline’s staff may be fired this month as part of new management’s cost-saving measures to keep the embattled airline alive.

Arik Air has about 2,000 workers spread across its local and foreign operations, while it operated a fleet of 28 aircraft at optimal capacity, which enabled it to generate enough revenue to meet its over N1 billion wage bill.

Daily Sun quoted sources as saying that the airline currently under the Asset Management Corporation of Nigeria (AMCON) receivership is now operating with only eight functional aircraft in its fleet which makes the retaining of its 2,000 workforce uneconomical.

According to report, some of the foreign pilots have on their own left the country, while several indigenous pilots and cabin crew are also reported to have been absent from work.

“With a drastic reduction of fleet from 28 to eight as well as reduction in scheduled flights from 120 to an average of 18 flights daily, there are strong indications that Arik Air would retrench most of its workers, as its revenue continues to dwindle and the number of air worthy airplanes dwindles,” the source said.

“That is the only way to cut down the overhead and keep the airline alive. But with a current monthly revenue of N1.5 billion, which is not enough to meet operating costs, offset aircraft insurance bills or pay its creditors, staff retrenchment may happen any time within the first quarter of this year.

“The tragedy of Aero Contractors was the inability of AMCON to sack its over-bloated workforce even when fleet had depleted from 12 to just three. The same mistake can’t happen with Arik,” the source, a top official of an airline who wouldn’t want to be named, said.

Meanwhile Media Consultant to Arik Air, Mr. Simon Tumba, has, however, debunked the alleged planned mass sack at the company.