Arik Air needs N10bn to bounce back – New management

Arik Air needs N10bn to bounce back – New management
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arik-air-plane

The new management of Arik Air has stated that the struggling airline would need over N10bn to bounce back.

According to the new management, it inherited nearly an empty shell
of a carrier with only 10 out of the 28 aircraft in its fleet functional
at the moment.

DAILY POST reports that the airline was on Thursday taken over by the
Federal Government through the Asset Management Corporation of Nigeria
due to a debt profile of over N300bn.

It was gathered that only 10 out of the 28 aircraft in the fleet of
the airlines were operational, with 18 either grounded or had gone for
C-check in Europe.

The Capt. Roy Ilegbodu led management said in a statement on Sunday,
“As if these problems are not enough, the airline does not have money to
procure aviation fuel for the nine operational aircraft because no
dealer wants to sell aviation fuel to Arik except it is on a
cash-and-carry basis.

“This also calls for public understanding because flight schedules
may be realigned based on the nine aircraft that are available and are
technically sound and ready for flight operations.

“It was also discovered that Arik also owes its technical partners
and is also in perpetual default in its lease payments and insurance
premium, leading to regular and embarrassing squabbles with different
business partners, which accounts for why 18 aircraft are off the fleet
for different reasons.

“All these problems, in addition to huge staff salaries, which have
remained unpaid for 11 months, and vendors that supply different items
to Arik Air who are also owed, meant that Nigerians may have to tarry a
while to allow the new management clean up the huge mess at the airline
before Arik will finally resume uninterrupted flights.”

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