REVEALED: But for AMCON, Arik would have shut down Feb 12

If Asset Management Corporation of Nigeria (AMCON) had not intervened in the crisis rocking Arik Air, the company would have shut its doors on February 12.

On Thursday, the federal government took over the airline, which is Nigeria’s largest domestic carrier.

Sources told TheCable that the insurance cover for its aircraft would have expired on February 12.

The federal government had explained that it decided to intervene as part of its commitment to instill sanity in the aviation sector.

A source told TheCable that the airline’s operation improved after the government constituted a new body for the organisation.

“Following it’s intervention yesterday, it has now been gathered that virtually all of Arik’s trade creditors are being owed, staff salaries have not been paid for between four to six months, and of the 28 aircraft in Arik’s fleet, only 10 are in operation,” the source said.

“Due to the intervention, flights are operating and the insurance cover for the aircraft which would have expired on Sunday, February 12 has now been sorted and trade creditors and fuel marketers have been assured that all indebtedness will be looked into; they have offered to support the new management to get operations run smoothly.

“Flight schedule may therefore be realigned to match the 10 aircraft in the fleet, while also sorting out the myriad of problems confronting the airline. It is obvious that without government intervention, Arik would have virtually stopped operation by Monday of next week.

“Government is making efforts to return the aircraft in various parts of the world in repair yards, with the aim of stabilising the airline to offer safe, secure and timely services to customers.”

Reacting to government’s action, the management of the airline vowed to go to court.

Some of the issues that affected Arik Air before the government stepped in, were confiscation of aircraft due to non-payment of leases, frequent flight delays, and constant fracas between its staff and aggrieved passengers.