We need N10bn to fix Arik airlines – AMCON

The Assets Management Corporation of Nigeria (AMCON) has said it would require N10 billion to fix the rot in Arik airlines.

The asset company made the disclosure in a statement signed by its Spokesman, Jude Nwauzor in Lagos.
AMCON said it has discovered enormous rot in Arik after taking over the airline last week.

It said only nine of the airline’s 30 aircrafts were functional.

“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 also disclosed that Arik owes lease payments, insurance premium and its technical 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.

According to the statement, the airline’s new Managing Director, Roy Ilegbodu has assured that the issues will be gradually resolved.

He said the remaining 21 aircrafts will be made functional to avoid indiscriminate cancellation of flights.

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.

The Federal Government took over the airline on February 9 due to a debt profile of over N300 billion.

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