Arik take over: Why Nigerian airlines fail-ART

Aviation think tank, Aviation Round Table (ART) yesterday said treating the Arik Air’s case in isolation would be to trivialize the magnitude of the problem, saying they all saw it coming
 
  On Thursday, the Asset Management Corporation of Nigeria (AMCON) took over the carrier. The takeover would help to save over 2,000 jobs as the carrier is seriously ailing.
 
President ART, Elder Gbenga Olowo said going back to almost 40 years, Government airline Nigeria Airways failed, Pioneer Private airlines Okada, Kabo, etc failed,  third generation ADC, Bellview, Chachangi, Sosoliso, etc failed, 4th generation Richard Branson Virgin Nigeria, Air Nigeria, etc failed.
arik 
“Believe me, given the same Nigeria operating environment the National carrier yet to be born will fail.
We all saw it coming to Arik and may be others more than a year ago. ART Q1 breakfast meeting in 2016 appraised the very poor situation of Nigerian Airlines and rose with unambiguous communique on the way forward. This is still available on artng.org.” 
 
He described the cause of problem of Arik as essentially Nigerian business environmental factor, adding that business and government are permanently at variance.
 
“Cost is permanently higher than Income. Tax overburden and infrastructural deficit erodes revenue steadily. Gazetted policies that will enhance performance are not implemented. Credit is not in the Nigeria business dictionary. Yet Aviation is prone to the minutest situation in the economy ranging from weather to politics, reckless holidays, etc.

“Needless to say that lack of will to do things right by leadership is the undoing of Nigeria and ditto Nigerian Airlines & businesses, he said it is on record that Governor Tunde Fasola delivered in Lagos; but alas!, what has happened to power in two years that he secured federal might?

“That is the real issue. It is a fundamental problem that needed surgical operation.”
 
AMCON while taking over the airline said the development will also afford the airline, which is the largest local carrier, to go back to regular and undisrupted operations, avoid job losses, protect investors and stakeholders’ funds as well as ensure safety and stability in the already challenged aviation sector.
Consequently, the airline would now be managed by Capt. Roy Ukpebo Ilegbodu, a veteran aviation expert under the receivership of Mr. Oluseye Onasanya (SAN).
In the same vein, Capt. Ilegbodu has also given assurance to both staff of the troubled airline and all other stakeholders that his appointment at Arik would, among other objectives, enhance the value of Arik, improve customer experience, and sustain the safety, reliable and secure operational history of the airline before all those were eroded.
“As a matter of fact, Arik Air has been in a precarious situation largely attributable to its heavy financial debt burden, bad corporate governance, erratic operational challenges and other issues. “This required immediate intervention in order to guarantee the continued survival of the Airline.
“Yesterday, Arik temporarily suspended its flight operations to the John F. Kennedy International Airport, New York, United States, claiming that the two Airbus A330-200 aircraft dedicated to the route have been taken to France for C check at the same time. “Equally more than eight aircraft are currently grounded at the tarmac, making it difficult to meet their routine commercial flights,’’ Ilegbodu said.
 
Wole Shadare