Banks are now supporting Arik, says AMCON

The Asset Management Corporation of Nigeria (AMCON) says banks which hitherto turned their backs on Arik were now supporting the new management.

In a statement signed by Jude Nwauzor, its spokesman, the corporation said public confidence is gradually returning to the airline which is Nigeria’s largest domestic carrier.

On February 9, AMCON took over Arik owing to its debt profile said to be over N300 billion.

The corporation appointed Roy Ilegbodu, a veteran aviation expert, to manage the airline under the receivership of Oluseye Opasanya (SAN).

Nwauzor said unlike what happened before the takeover, average on-time-performance (OTP) of Arik Air to different destinations had improved.

According to the spokesman, engagement with international and local creditors has also been successful while discussions with critical service providers and industry stakeholders have yielded the much desired positive results.

“Arik has also paid the insurance premium, which was on the verge of expiring and commenced the payment of outstanding salaries, which has greatly boosted staff morale as well as performance,” he said.

“Arik is also in discussion with different creditors and stakeholders to recall a good number of aircraft into the fleet, as soon as possible, which will increase the number of daily flights.”

The corporation said a good number of passengers affected by the suspension of flights to some routes had been refunded, adding that efforts were on to reach out to those yet to get their refunds.

Nwauzor said with the positive developments being witnessed in the operations of the airline since its takeover, customers of Arik were gradually coming back.

The corporation said its efforts in ensuring improved performance Arik had resulted in stable and professional management of the airline.

The new management said efforts at reviving the airline was boosted by the fact that Arik had unparalleled safety record that “speaks for itself in the history of aviation in the country”.

AMCON also said it had held a series of fruitful engagements and agreements with major suppliers of aviation fuel for regular supplies of the product to Arik to guarantee regular flights.