The Asset Management Corporation of Nigeria (AMCON) on Sunday said it had discovered deep rooted rot at embattled airline, Arik Air.

AMCON said it would require over N10 billion to fix the rot before the largest local carrier could resume full and uninterrupted flight operations to its regular routes across the country and beyond
The asset company made the disclosure in a statement signed by its Spokesman, Mr Jude Nwauzor in Lagos.

The airline was on Feb. 9 taken over by the Federal Government under the auspices of AMCON as a result of a whooping debt profile of over N300 billion.

AMCON had directed that the airline would now be managed by Capt. Roy Ilegbodu, a veretan aviation expert, under the receivership of Mr Oluseye Opasanya (SAN).

The statement noted that the situation was so bad that only nine aircraft out of the 30 in the fleet of the airlines were operational.

According to the statement, 21 of them have either been grounded, gone for C-check in Europe, among other forms of challenges.

“As if these problems are not enough, the airline does not have money to procure aviation fuel for the nine operational aircrafts because no dealer wants to sale aviation fuel to Arik if it is not on cash-and-carry basis.

“This also calls for public understanding because flight schedules may be realigned based on the nine aircrafts that are available, technically sound and ready for flight operation,” it said.

The statement said it was discovered that Arik also owe its technical partners and also in perpetual default in its lease payments and insurance premium, leading to regular and embarrassing squabbles with different business partners.

“All these problems in addition to huge staff salaries, which have remained unpaid for 11 months; vendors that supply different items to Arik Air that are also owed means that Nigerians may have to tarry-a-while to allow the new management clean up the huge mess at the airline before Arik would finally resume uninterrupted flight,’’ It said.

The statement quoted Ilegbodu as reassuring Nigerians that these issues; though daunting, would be gradually resolved to enable Arik Air, which carries about 55 per cent of the load in the country recover the 21 aircraft.

According to him, once all the aircrafts are back to the fleet, Arik Air will within the shortest possible time regain its pride of place as a leader among the comity of airlines in Nigeria.

He reiterated the fact that the intervention at Arik Air clearly underscores government’s decision to instill sanity in the nation’s aviation sector, adding that the move also prevented a major disaster that would have befallen the airline.

It said that the new management had settled the insurance cover for the aircraft which would have expired on Feb.12 and also met with different trade creditors as well as aggrieved staffers.

It, therefore, called for public understanding as the management begins the tough job of ensuring that Arik is returned to full operational capacity within the shortest possible timeframe. (NAN)

http://www.kikiotolu.com/2017/02/arik-air-requires-n10bn-to-resume-full.html

Lalasticlala Mynd44 seun Dominique

wow 10bn much sha..wen will deh finish paying this off.. ftc... to Aboyo

Hmmm. 300 billion debt. I believe, corruption also plays its role here. smh for Nigeria. Capital Punishment, where art thou!!! A country desperately needs you!!


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Dis Yakubu Andrew Liver salt ft just borrow them na

In don jazzys voice

COME AN COLET IT

Let's just say good night Arik , with what I have read there is no way that airline is coming back ..

Arik a typical example of recession

Awon Oni gbese

In other words they need bailout like Aero

With this distressing news, who will book Arik now.... make dem cancel flight say Dem no get money to buy aviation fuel

300 Billion Naira Debt and they need 10Billion Naira to continue full operations, when will they finish paying this debt?

Arik was really mismanaged.

10b then arik should sell off some jets I mean their flying coffins







So arik wasn't saving in the days of boom

...Are we going to be flying free of charge

Corruption, mismanagement is the trouble with Nigeria, I often wonder why most Nigerian owned companies don't stand the test of time.

johnwizey:
Dis Yakubu Andrew Liver salt ft just borrow them na

Na wah! Wetin happem to all the money them dey rake in with their high cost of flights

Onkyn

Just like the other thread where someone asked if his friend should blow the whistle on his corrupt boss, many people said no.

Arik Air is an example of what happens if you allow your bosses to steal from the company, the company goes under you become jobless and your boss goes home with his loot.

THE DISAPPOINTING ARIK.
Was it not Arik that a staff fought a passenger in king fu challenge.

ASABA ULTRAMODERN MECHANIC VILLAGE AND AUTO PARTS MARKET NOW SELLING. CHECK MY SIGNATURE

Nawa o. This is the fall of a whole Mega Arik. All in Buhari dictatorship

For how many years have I said that air travel is beyond Nigeria and the so called industry, or business is all a farce. What happened to Bellview in the hands of AMCON. That will be the destiny of Arik. Ten billion to be stolen or thrown away. Bloody waste of time.

The downfall of this airline is partly as a result of poor corporate governance and weaknesses in the internal controls of the company

it don be...

we are in a third world country...

i counted over 40 planes with emblem KENYA AIRWAYS at the runway in JKIA...Ordinary Kenya...Not the ones in transit oooo

We cant even manage ordinary palm kernel farms here...

We should be ashamed of ourselves.

Does it mean Arik has not been making profit all theses years of operation.

Arik should be declared bankrupt, it's assets should be disposesed of in order to settle it's mountain debt,it is time for a complete overhaul of Arik from the look of things it's obvious some individuals have turned this company into a personal ATM.

300billion debt very soon they will start serving coconut and purewater please bear with them

Pavore9:
Arik was really mismanaged.

Ha!ha!

Ill gotten wealth. Have people cared to ask of the source of capital for arik air?

It is not mismanagement, it is nemessis.

Rockson engineering viz a viz odili, johnson arameme, & rivers state coffers know better.

realnas:
Arik should be declared bankrupt, it's assets should be disposesed of in order to settle it's mountain debt,it is time for a complete overhaul of Arik from the look of things it's obvious some individuals have turned this company into a personal ATM.

Nobody turned arik into anything. Rather arik turned rivers state into an atm. Ask odili, johnson and rockson engineering.

Olu20090:
This always happens when you allow afonjas run anything, they will destroy it just like that woman is destroying our economy. SMH

Olodo..., Arik MD na Igbo man (Chris Ndulue) while the airline is majorly owned by an Edo man (Arumemi Johnson) who was also the chairman .