A proposal has been put forward by the Asset Management and Corporation of Nigeria suggesting the merger and reformation of Arik and Aero Contractors airlines into a national carrier.
This proposition was highlighted by Gbenga Alade, the Managing Director/Chief Executive Officer of AMCON, during an interactive session with media executives in Lagos.
Alade mentioned that both Arik and Aero Contractors are in significant debt, leading to doubts about their ability to settle their obligations.
He explained that a previous suggestion to convert Arik and Aero Contractors into a national carrier was dismissed by the former aviation minister, but AMCON plans to revisit and advocate for this strategy.
Regarding the halted Nigeria Air project which included a partnership with Ethiopian Airlines, it faced criticism for its ownership structure, prompting the suspension of the national carrier project by the current minister, Festus Keyamo.
A recent court ruling suspended the sale of Nigeria Air to Ethiopian Airlines following legal challenges raised by aviation industry stakeholders.
Alade expressed concerns about the financial status of Arik and Aero Contractors, particularly emphasizing the challenges faced by Arik due to its outstanding debts.
He disclosed ongoing negotiations with major international creditors of Arik, detailing efforts to address the airline’s debts and revive its operations.
Additionally, AMCON’s asset recovery initiatives have seen some success, with plans to engage international asset tracers to locate hidden assets of debtors, including those under special purpose vehicles.
Alade commended the collaboration and support received from various stakeholders in the sector towards recovering outstanding debts and reviving troubled assets.
The upcoming stakeholders’ conference promises to address challenges posed by non-performing loans, with a focus on resolving issues in key sectors like power and telecommunications to stimulate economic growth and create employment opportunities.