Sunday , 25 September 2022
Arik Air

Arik Air requires N10billion capital injection to resume full operations

…challenges are daunting, but we’ll resolve them- Capt. Ilegbodu

 FEDERAL Government  through the Asset Management Corporation of Nigeria (AMCON) has revealed that  it would require over N10billion to fix before Arik Air before the airline would resume full and uninterrupted flight operations to its regular routes across the country and beyond.

The airline was on Thursday taken over by the AMCON as a result of a whooping debt profile of over N300billion which appointed the new Chief Executive Officer of Arik Airlines, Capt. Roy Ukpebo Ilegbodu, a veteran aviation expert under the receivership of Mr. Oluseye Opasanya .

The airline management in an official statement to Nigerianflightdeck revealed,” The situation is so bad that only nine aircraft out of the 30 in the fleet of the airlines are operational. 21 of them have either been grounded, gone for C-check in Europe among other forms of challenges. As if these problems are not enough, the airline does not have money to procure aviation fuel for the nine operational aircraft because no dealer wants to sell aviation fuel to Arik if it is not on cash-and-carry basis.”

The statement also stated that the airline also owed its technical partners and is in default of its insurance payment.

“It was also discovered that Arik also owe its technical partners and also in perpetual default in its lease payments and insurance premium, leading to regular and embarrassing squabbles with different business partners, which accounts for why 21 aircraft is off the fleet for different reasons.”

“ All these problems in addition to huge staff salaries, which have remained unpaid for 11 months; vendors that supply different items to Arik Airlines that are also owed meant that Nigerians may have to tarry-a-while to allow the new management clean up the huge mess at the airline before Arik would finally resume uninterrupted flight. “

Despite this bleak outlook, the management today reassured Nigerians that these issues; though daunting, would be gradually resolved to enable Arik Airlines, which carries about 55% of the load in the country recover the 21 aircraft.

Chief Executive Officer of Arik Airlines, Capt. Ilegbodu stated, “once all the aircraft are back to the fleet, Arik Airlines would within the shortest possible time regain its pride of place as a leader among the comity of airlines in Nigeria. “

He reiterated the fact that the intervention at Arik Airlines on February 9, clearly underscores government’s decision to instill sanity in the nation’s aviation sector, adding that the move also prevented a major disaster that would have befallen the airline.

Having settled the insurance cover for the aircraft, which would have expired tomorrow, February 12 and met with different trade creditors as well as aggrieved staff, Capt. Ilegbodu therefore called for public understanding as he begins the tough job of ensuring that Arik is returned to full operational capacity within the shortest possible timeframe.

It would be recalled that the Federal Government using the vehicle of AMCON took over the management of Arik Airlines because the airline was seriously immersed in heavy financial debt burden that threatened to permanently ground the airline.

Arik’s challenges were attributable to its bad corporate governance, erratic operational challenges, inability to pay staff salaries and heavy debt burden among other issues, which led to the call for authorities in the country to intervene before Arik goes under like many before it.

He maintained that the recent intervention was in the best interest of all stakeholders, the general public, workers, creditors and other aviation interest groups in the country.

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