General

AMCON ‘not aware’ of Ethiopia’s bid for Arik Air

September 5, 2017 8:53 am

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The Asset Management Corporation of Nigeria (AMCON) says it is not aware of the bid claimed to have been made by the Ethiopian government for Arik Air, Nigeria’s largest domestic airline.

The agency made this known in a statement signed by Jude Nwauzor, AMCON’s head of corporate communications.

CNN had reported that Esayas WoldeMariam, Ethiopian’s managing director of international services, disclosed that the airline had made an offer, and was waiting for the response of the government.

“We have outlined our terms and conditions to the Nigerian government and we are waiting to see if they agree. We are capable and desirous of handling the airline,” he was quoted to have said.

But AMCON, in its statement, said: “Our attention has been drawn to a barrage of media reports, which claimed that there are discussions going on with Ethiopian Airlines for the carrier to render management services to Arik.

“Contrary to these reports, the Asset Management Corporation of Nigeria (AMCON) is not aware of any current discussion or negotiation with the management of Ethiopian Airlines regarding Arik Air Limited (Arik).

“Arik was placed in receivership last February, following the airline’s inability to repay debts in excess of N300 billion to AMCON and other creditors in Nigeria and around the world. It is on record that the Receivership Team has within the period stabilised the operations of the airline, marked by stability of schedules; improved On-Time-Performance (OTP) and revamped customer service among others.

“The general public and all stakeholders will be kept duly informed on issues relating to the airline’s divestment plan.”

Speaking at the World Bank/IMF meetings in April, Kemi Adeosun, minister of finance, disclosed that the government was speaking with some investors on the sale of the airline.

She did not disclose the name of the investors but said, “it was a preliminary discussion. They just expressed interest in buying the airlines and we told them that we would look into it”.