Companies

Ethiopian Airlines not negotiating with us for Arik – AMCON

by Editor

September 7, 2017 | 12:31 am
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The Asset Management Corporation of Nigeria (AMCON) has debunked reports that it is negotiating with Ethiopian Airlines to manage Arik Airline, the Nigerian carrier.

AMCON was established in 2010 to intervene in the banking sector to maintain economic and social stability in Nigeria following the unprecedented rise in non-performing loans (NPL) to 34.3 per cent of industry assets in 2009, with 8 banks requiring capital injection to remain solvent.

The company’s core objective was to recapitalise the banks, get the industries assets and subsequently get the best financial returns on the assets, had acquired Arik Air to avert a collapse of the company and save the Nigerian aviation sector from a threatening disaster.   

Arik is a dominant operator that controls over 60 per cent of the passenger traffic in the Nigerian aviation industry, so any threat of liquidation was perceived by stakeholders as having crippling effects on the sector. The airline employs at least 2,000 Nigerians.

The corporation debunked the Ethiopian Airline negotiations report in a statement signed by Jude Nwauzor, head of corporate communications in Lagos on Monday

AMCON said it was not aware of any current discussion or negotiation with the management of Ethiopian Airlines regarding Arik Air Ltd.

“It is on record that the receivership team has within the period stabilised the operations of the airline, marked by stability of schedules; improved On-Time-Performance (OTP) and revamped customer service among others,” the statement said. “Today, the Airline has regained its dominance as the most reliable carrier in the country with growing passenger patronage and confidence.”

“The general public and all stakeholders will be kept duly informed on issues relating to the airline’s divestment. ” Nwauzor said.

Arik was placed under receivership in February, following the airline’s inability to repay debts in excess of N300 billion to AMCON and other creditors within and outside the country.

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by Editor

September 7, 2017 | 12:31 am
  |     |     |   Start Conversation

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