Federal Government takes over Arik Airlines

The Buhari led Federal Government has taken over the operations of Arik Airlines.

The move, the FG says, is to save it from total collapse.

Arik Air has been engrossed in a hefty financial debt burden that has threatened to permanently ground the airline.

Arik Air carries accounts for more than 50% of the domestic airline travels in the country.

The company has been going through difficult times that are attributable to its bad corporate governance.

Arik has been unable to pay staff salaries and heavy debt burden among other issues.

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The Asset Management Corporation of Nigeria, (AMCON), has officially taken over the firm on behalf of the FG.

“We assure all stakeholders that the intervention is in the best interest of the general public, workers, and other aviation interest groups.”

The development will afford Arik Airlines to go return to regular and undisrupted operations and avoid job losses.

The airline would now be managed by Capt. Roy Ukpebo Ilegbodu, a veteran aviation expert.

The deal is under the receivership of Oluseye Opasanya, SAN.

The Minister of State for Aviation, Senator Hadi Siriki, said “We believe that this appointment is timely.

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“It will stabilize the operations of the airline.

“This will enhance the long-term economic value of Arik Air and revitalize the airline’s ailing operations.

“It will also sustain safety standards in view of Arik Air’s pivotal role in the Nigerian aviation sector.”

Arik Air has many problems, to say the least. Some of which includes confiscation of aircrafts due to non-payment of leases.

The airline is so overwhelmed to the extent that the worker’s wages are not paid for several months.

The Airline is also in perpetual default in its lease payments and insurance premiums.