Nigerian Flight Deck Travel and Business Reportage
The incursion of the Asset Management Corporation of Nigeria (AMCON) into Nigeria’s aviation industry under the guise debt recovery has been criticised as the airline has spent years in two airlines, Arik Air and Aero Contractors and making them worse than when they met them.
President/ CEO of Sabre West Africa, Dr. Gabriel Olowo who described AMCON’s position as a turnaround manager a misplaced judgement said the corporation was set up to collect debts of banks and not turn the business around.
Olowo said AMCON has not been able to deliver the airline of your dreams, nor have they been able to sufficiently pay the banks’ debts.
According to him, because of AMCON’s drive to recover debts, safety is being undermined, stating that because it is a government affair, somebody turned away his/ her eyes while the AMCON airlines keep the operations going and collect debts.
He explained that bankruptcy does not mean death, and turnaround simply means you set the debts aside, pump in fresh funds and resuscitate the business and when the business is revitalised after some years, the owners can begin servicing the debts.
He however said,”… but to ask AMCON to come and turnaround and at the same time to pay the airline debts, that is the consequence that you are seeing.
He continued, “They proposed a few years ago to merge Aero and Arik Air as one flag carrier for Nigeria, but government officials started disagreeing with one and other. That means we are not cohesive in policy.
“What do you want to do with these two airlines? Set them bankrupt, get all the assets and let it float a strong airline for you and then, you will know you are making some progress. That progress will service the debts. That is the way out. Otherwise, if they continue with the way they are doing, they will end up killing the airlines and will have nothing out of them.” Olowo said.
He further lamented,”I read that they (AMCON) met about 17 aircraft at Arik Air when they came onboard, but now, they have less than five. Is that progress? Then, go and check the on-time departure of that airline. If an airline is doing 70 per cent delays, is that an airline?
“So, for me, AMCON coming into that sector is absolutely a misplacement of judgement. We didn’t get it right. Shut the airline down, collect your money and you know the airline has become a history. But to ask them to run and at the same time collect money, it is an effort in futility.
