The insurance cover of Arik aircrafts would have expired on February 12 if the Assets Management Company of Nigeria (AMCON) had not taken over, TheCable reports.

AMCON had taken over the airline and appointed a new board on Thursday.

According to the Federal Government, the action was necessary save the aviation sector from collapse.

A source revealed that the government discovered that staff were being owed and only 10 of the airline’s 28 aircrafts were functional.

“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 AMCON’s 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.

“AMCON 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.”

The airline has however vowed to challenge the takeover in court.

Azeez