The largest Nigerian carrier in West Africa, Arik Air was today taken over by the Asset Management Corporation of Nigeria, AMCON. Arik is the second known brand to be taken over by the Asset Management company since last year.
BlackBox Nigeria gathered that the taken over was necessary so as to save the Aviation industry a major setback should the airline collapse totally.
The management of the Asset Management Corporation of Nigeria, AMCON, said the decision to intervene clearly underscores the government’s commitment to instil sanity in the country’s aviation sector to prevent a major catastrophe in the country.
“The development will afford Arik Airlines, which is the largest local carrier in the country, to go back to regular and undisrupted operations, avoid job losses, protect investors and stakeholder funds as well as ensure safety and stability in the already challenged aviation sector,” AMCON spokesperson, Jude Nwauzor, said.
Under the new arrangement, the airline would be managed by Roy Ilegbodu, a veteran aviation expert, under the receivership of Oluseye Opasanya, a senior advocate of Nigeria.
The fall in oil price, a weakened currency, stringent monetary policies, and consequently a lack of foreign exchange and currencies led to a “mass withdrawal” of airlines from Nigeria’s aviation market a few months ago.