FG mulls merging Arik, Aero Contractors into national carrier

The Asset Management Corporation of Nigeria (AMCON) whitethorn merge Arik Air and Aero Contractors and person them into a nationalist carrier, according to AMCON Managing Director/CEO, Gbenga Alade.

Speaking astatine an interactive league successful Lagos connected Monday, Alade noted that some airlines beryllium important sums that they are improbable to repay.

Alade explained that AMCON had antecedently projected the thought of converting Arik and Aero into a nationalist bearer to the erstwhile aviation minister, Hadi Sirika, but it was rejected.

He added that contempt the merchantability of a peculiar intent conveyance (SPV) initially intended for the project, the corp is considering creating a caller SPV to revisit the proposal.

“The erstwhile absorption of AMCON presented the thought of converting Arik and Aero to a nationalist carrier. But the erstwhile aviation curate did not bargain the idea. We volition contiguous it again due to the fact that that is the champion option.

“Unfortunately, the peculiar intent conveyance that was created by the erstwhile absorption of AMCON for the conversion of Arik and Aero to a nationalist bearer had been sold. But we tin make different SPV this,” helium explained.

He besides noted the fiscal struggles of the airlines, peculiarly Arik, which owes implicit $52 cardinal to creditors, including Afreximbank. Despite efforts to negociate a settlement, Alade stressed that Arik’s fiscal concern is dire.

“Believe me, it is simply a precise hard occupation to resolve, and it is giving maine sleepless nights, peculiarly Arik. Arik is owing truthful overmuch that they cannot pay,” helium stated. “There is simply a mode out. We person met each their large planetary creditors. Afreximbank is 1 of them. They (Arik) are owing Afreximbank astir $52m.”

After negotiations, helium said the hose was lone consenting to instrumentality $8.5m retired of the $52m.

“However, wherever volition that $8.5m travel from? Where? AMCON doesn’t person wealth of his ain to enactment there? And past they negotiated and said, okay, ‘let’s instrumentality immoderate of the engines of those things distant successful afloat and last settlement’. And the information is that, if they took those engines away, Arik is finished.

“But we said ‘no, we cannot let you to instrumentality it away. Let AMCON springiness you a benignant of slope guarantee. And we volition agelong it truthful that 3 planes are flying present and by the Lord’s grace, by February adjacent year, we privation to marque 7 planes alert for Arik,” helium stated.

In 2016, AMCON took implicit Aero Contractors, followed by Arik Air successful 2017, aft some airlines failed to conscionable their indebtedness obligations, which totalled billions of naira.

AMCON’s ongoing plus betterment efforts see plans to prosecute planetary plus tracers to retrieve assets hidden by debtors abroad.