In a recent statement, Asset Management Corporation of Nigeria (AMCON) said that since it took over the running Arik Air airline four years ago, Arik Air had remitted N12 billion to the relevant aviation agencies. AMCON also dismissed the notion in some quarters that NG Eagle was to be positioned as a national carrier.
The Managing Director of AMCON, Ahmed Lawan Kuru, made the statement during yesterday’s welcome address at a function in Niger State. In a statement, Mr Jude Nwauzor said AMCON handled Arik Air as an ongoing obligation to the ministry of aviation and wondered why it was prohibiting the corporation from setting up a new airline.
In Kuru’s explanation, the company’s involvement with Arik Air wasn’t for financial recovery but out of a national duty to ensure the airline’s survival given its strategic importance within the aviation industry at that time.
He also described the company’s realization that at a certain point it must prepare an exit strategy from its entire aviation portfolio, and based on the advice received, the decision was made to set up NG Eagle through the process of certification by the Nigerian Civil Aviation Authority (NCAA).
“It was a very vigorous process that took us more than two years. Ultimately, we were able to meet all the requirements including getting three aircraft branded (they are currently at the Murtala Muhammed Airport in Lagos, branded as NG Eagle) and ready for operation but we are being frustrated.
“NG Eagle is not a national carrier. We have no business with that. We are only concerned with recovering our money, but first, we were told that NG Eagle sounds too much like a national carrier. We reminded them that they had issued license to United Nigeria Airlines, and somehow that one does not sound like a national carrier to them.
“We are also aware that based on the NCAA Act, the only condition for NCAA to deny anyone a license to operate an airline should be based on safety reasons, which would be investigated and brought to the attention of the applicant for fair hearing.
“Suddenly we are again being confronted with the challenge through the National Assembly that the license should not be released until AMCON settles Arik debt with NCAA, this we believe is an afterthought.”
The company said it was establishing NG Eagle as a strategic exit from its aviation portfolio. The concerned companies owed over N300 billion in debt, and no money injected into them before or after receivership produced a positive return.
Therefore, AMCON chose to exit its aviation portfolio through NG Eagle, a brand new airline that is unencumbered and easier to dispose of profitably.
Alleluia is the Assistant Editor and Content Writer at LagosPost.ng. She is a prolific writer and editor, she has written features and news stories on Lifestyle, Sports, Business, Politics and B2B marketing. She is also an event coordinator, host and social media content creator.
