Arik Air Taken Over By AMCON

The Asset Management Corporation of Nigeria (AMCON) yesterday took over the executive control of Arik Air to save the carrier from collapse due to its heavy financial debt burden.

With the takeover by independent management under AMCON, owned by the Federal Government, the airline stands a chance of not going under, but to rebound and give efficient services to passengers and meet its financial obligations, including paying workers’ salaries.

The airline will noThe change in management came after the Economic and Financial Crimes Commission (EFCC) invaded the headquarters and quizzed the Chairman, Sir Michael Arumemi-Ikhide, for several hours over alleged misappropriation of N135 billion.w be managed by Capt. Roy Ukpebo Ilegbodu, a veteran aviation expert with more than 30 years experience, under the receivership of Mr. Oluseye Opasanya (SAN).

A source stated: “N135 billion is just debts owed to AMCON. What about the $20million owed foreign partners for services or the N100million to renew its insurance?

“In fact, it is in everybody’s interest – the government, the airline and the passengers– that it continues to operate. There is no way government can allow Arik, Nigeria’s biggest airline and the only one flying the international routes, to go under.”

“The new management will examine the fundamental problems of the airline and will remain until the airline stabilises and able to meet its domestic and external obligations to all stakeholders,” the source added.

Arik Air, which is reputed as West and Central Africa’s largest carrier, was accused of bad corporate governance; erratic operations; inability to pay staff salaries; delay in renewal of aircraft insurance, and heavy debt burden to fuel marketers and aviation ancillary services, among others.