More Revelations As FG’s Intervention In Arik Enters Day 3

* Pix Source: The Lens


Barely 48 hours after the Federal Government through the Assets Management Corporation of Nigeria(AMCON) took over Arik Air ,more revelations are filtering out of the airline , as to why the airline has been having erratic operations and why the Federal Government’s intervention was  timely.

This is just as the airline has started receiving supports that would enable the airline offer smooth flight services from its trade partners. learnt that following the much awaited intervention on Thursday, February 9, 2017, series of indebtedness have been revealed.

Checks by the online platform also showed that the embattled airline is indebted to virtually all its trade creditors and that staff are owed between four to six months salaries. also learnt that of the 28 aircraft in Arik’s fleet, only 10 are in operation and that it appears that unlike previously recorded, Arik have debts in excess of N300 billion, especially with some banks, excluding fuel suppliers, lessors and maintenance companies.

However, as a result of the Federal Government timely intervention, operations are continuing and the insurance cover for the aircraft, which would have expired on Sunday, 12 February, has now been sorted out.

It was also learnt that AMCON has assured trade creditors and fuel marketers that all indebtedness would be addressed, just as they have also offered to support the new airline management to ensure smooth operations.

The online news medium learnt that due to huge indebtedness of Arik Air to fuel marketers, they suspended credit facilities, but with the new management occasioned by the intervention, the airline is working to ensure steady fuel supply.

Recalled that the airline often time blame its erratic operations on scarcity of aviation fuel ,whereas it was due to the huge debts owed aviation fuel marketers, who  introduced the cash and carry policy to sell their products.

To further ensure that the operations of the airline are disrupted, flight schedule may be realigned to match the 10 aircraft remaining in the fleet, while sorting out the myriad of problems confronting the airline.

A source close to the airline, who spoke on the condition of anonymity told that the management was making efforts to stabilise the operation of the debt infested airline by scaling down flight operations based on the number of serviceable aircraft at its disposal, until more aircraft return from C-check and maintenance yards abroad.

The source added that as a result, a new schedule will be announced in the next few days to accommodate its existing fleet of 10 aircraft.

“It is obvious that without Government intervention Arik would have virtually stopped operation by Monday of next week. We need public support to understand the enormity of the challenges here, while we stabilise operations over the next few days, as we offer safe, secure and timely services to customers” the source said


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