Managing Director of Asset Management Corporation of Nigeria (AMCON), Mr Ahmed Kuru, says AMCONs role in the airline industry was like a rescue mission, as the corporation never intended to manage the airlines longer than necessary. To this effect, Karu insists AMCON is ready to return the airlines currently under its management to their rightful owners.
This is, however, predicated on the owners’ ability to offset their indebtedness to the corporation.
Taking the example of Arik Air, Kuru said when AMCON stepped in, the company was witnessing high flight cancellations of close to 40% and that promptness of scheduled flights had fallen to as low as 15%.
The airline was also said to owe its staff, including pilots, up to 6 months arrears of salary.
The airlines’ dilemma was also made worse by persistent scarcity of aviation fuel. Furthermore, airlines were having problems sourcing foreign exchange for fleet maintenance.
According to the AMCON boss, they sold tickets in Naira and had to pay for maintenance in Forex, which was scarce, and expensive.
Kuru restated that AMCON is willing to hand over Arik Air and Aero Contractors as soon as their original owners can offset their debts.
Photo Credit: Daily Post