Arik Gradually Stabilizes Operations, Commences Debt Repayment

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Arik Airlines, Nigeria’s largest local carrier, recently taken over by Asset Management Corporation of Nigeria (AMCON), has within two weeks of the take-over commenced efforts to stabilise operations and repay outstanding debts which affected service delivery

The airline, now managed by Capt. Roy Ukpebo Ilegbodu, under the receivership of Mr. Oluseye Opasanya, has been able to eventually surmount the problems to stabilize operations with the few aircraft on the fleet.

AMCON in a statement made available to Footprint to Africa said “unlike what obtained before the takeover, average On-Time-Performance (OTP) of Arik Air to different destinations has improved; Nigerian banks that hitherto turned their backs to Arik now cooperate and support the new management; engagement with international and local creditors have also been successful; just as discussions with critical service providers and industry stakeholders have yielded the much desired positive results.”

AMCON disclosed that Arik has also paid the insurance premium, which was on the verge of expiring had AMCON not taken over on February 9, 2017; commenced the payment of outstanding salaries, which has greatly boosted staff morale as well as performance.

“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. Aside from that, a good number of affected passengers have been refunded while efforts are on to reach out to those yet to get their refund as a result of suspension of flights to some routes.”

AMCON noted that as a result of these positive developments, customers of Arik especially from the corporate circle are gradually coming back with assurances of stable and professional management with improving performance record within a short period, which is buoyed by the fact that Arik has unparalleled safety record that speaks for itself in the history of aviation in the country.

“The new management of the airline under the auspices of AMCON has held series of fruitful engagements with major suppliers of aviation fuel (ATK), and agreements reached for regular supplies of the product to Arik, which has guaranteed regular flights,” the statement added.

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