AMCON not interested in liquidating Arik Air

AMCON not interested in liquidating Arik Air

Feb 28, 2017: The Asset Management Corporation of Nigeria (AMCON) said it is not interested in liquidating Arik Air. “We believe that the airline, which has one of the youngest fleet in Africa, can be turned around through good corporate governance and financial discipline, said Simon Tumba, media consultant to Arik Air during a press briefing in Lagos.

 Tumba further added that Arik Air, under its previous management, owed the International Air Transport Association (IATA) $78 million.

The airline was on February 9 taken over by the Federal Government under the auspices of AMCON as a result of its huge debt profile.

AMCON appointed Capt. Roy Ilegbodu, a veteran aviation expert, to manage the airline under the receivership of Mr Oluseye Opasanya (SAN).

Tumba said the debt was for all aviation services provided under the platform of IATA, which recently suspended the airline from its Billing and Settlement Plan (BSP) and Cargo Account Settlement System (CASS).

"Arik Air under the former management was owing everywhere they operated. Apart from the over N300 billion owed to AMCON, the airline also owes about N50 billion to Nigerian banks and another $78 million to IATA.

"The airline was also in credit to their fuel suppliers and was not able to pay staff salaries for months.”

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