Aero Contractors: Airline In Search Of Lost Glory

It is still a surprise to many how Nigeria’s premium airline, Aero Contractors, was run aground. Like a scene in a horror film, Nigerians watched in disbelief how the carrier became a shadow of its former self. But, Capt Ado Sanusi who heads the carrier is in a race to turn the fortunes of the airline around, writes WOLE SHADARE

A rebirth?

The Assets Management Corporation of Nigeria (AMCON)-backed Aero Contractors last week relaunched services that it voluntarily suspended over five months ago. The carrier returned to life after a not-too-good experience that threatened its existence. To say the least, the oldest carrier, which has been in existence for nearly 60 years, is a shadow of its former self. In its glorious days, Aero was the airline of choice.

Those years were nostalgic for many who saw the airline as one of the few reliable carriers in the country as the Aero brand was so strong that Nigerians and foreigners made it their first choice. Although the carrier still maintains its impeccable safety record, discerning aviators and travelling public no longer reckon with it. It will take a lot of work to bring back the carrier to where it was some 15, or 20 years ago.

All hopes are not lost as the carrier works relentlessly to position and restore its glorious past. It is not impossible to achieve success if one considers the bringing back of one of the brilliant minds in aviation, Capt. Ado Sanusi, who is fast becoming known as ‘Mr. Fix it because of his numerous interventions in reviving corporations that had been left prostrate by some administrators and business owners. Sanusi was recently reappointed by the Federal Government owned airline to midwife and nurture the carrier back to profitability.

 Capt. Ado Sanusi

Task ahead

Even Sanusi admitted the onerous task ahead but was very confident in changing the narrative and making the carrier highly competitive, strategic, and profitable again.

Sanusi, in his speech to flag off the recommencement of operations of the airlines, admitted that it was time to reflect and analyse the mistakes made in the past with the intent of not repeating the same ever again. Sanusi said: “We have studied what we have done before, we have looked at what caused the failures of the past and we are very determined not to make the same mistakes and to expect different results.

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“We are very determined and my team is very experienced in analyzing what happened before I believe that is why it took us a little longer to come back because we were studying to make sure when we launched, we launched differently. And we are confident the mistakes of the past would not repeat themselves.” Sanusi, who spoke further on the restart, said: “The newly improved Aero Contractors is structured with four strategic business units and these four business units will support each other.

“We have the Maintenance Repair and Overhaul (MRO), which you are all aware of, we have improved it and are doing a lot of extensions to look into other aircraft types, NG for instance and we are looking at Embraer products, probably Airbus for maintenance.

“We are looking at the fixed-wing airline operations. We are also lo the rotary wing helicopter services. The rotary wing we intend to revitalise that business with more helicopters because we believe there is still some future in fossil fuel exploration so we will do some investment and get more helicopters to revive that charter.”

Flight suspension

The fear that all was not well with the airline led to a deluge of bad press ranging from a dearth of airplanes, workers’ union unrest, poor schedules, dwindling morale and general apathy among staff, and general financial constraints that were leading to a spiral ‘collapse’ of the airline.

The management of the airline took a holistic view of the situation and came to the conclusion that it was in its best interest to suspend operations and do a soul-searching before returning to the skies.

The airline on July 20, 2022, took a decision to suspend operations, citing harsh operating conditions as major reasons. The management, in taking the decision to halt operations said the decision was carefully considered and taken due to the fact that most of our aircraft were undergoing maintenance, resulting in its inability to offer a seamless and efficient service to our esteemed customers.

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The operator assured that they were working to bring the aircraft back to service in the next few weeks, so they could continue to offer passengers the safe, efficient, and reliable services that Aero Contractors is known for. “The past few months have been very challenging for the Aviation industry and the airline operators in particular. The high cost of maintenance, skyrocketing fuel prices, inflation, and forex scarcity resulted in high foreign exchange rates.

These are among the major components of airline operations. “In the meantime, we are working assiduously to return to service as quickly as possible, and do assure our esteemed customers and stakeholders of our determination, that our short absence will not create any major void in the market, as we are coordinating with our business partners to ensure minimum discomfort to ticket holders,” the airline said.

From Left, Chief Pilot Aero Contractors, Capt. Imoleayo, Adebule, Media Consultant for AMCON, Mr. Simon Tumba and MD Aero Contractors, Capt. Ado Sanusi

Metamorphosis

Aero Contractors’ descent to its present state has continued to be of great concern to many. The carrier is almost at ground zero; formerly a premium brand that had been allowed to fall into a pitiable situation.

It is a shadow of its former self. At inception in 1959 and for several decades, Aero Contractors carved a niche for itself and rose to stardom in Nigeria’s competitive aviation industry through high safety standards, reliability, and exceptional customer-friendly services all of which it was reputed.

It thus did not take long before this airline shot itself into a leadership position in the industry. At some point, foreign airlines such as Air France and British Airways signed a strategic codeshare deal with Aero Contractors to help them distribute their passengers from every part of the world to other cities in Nigeria because of its famed scheduled reliable, high safety record among other qualities.

Historically speaking, Aero Contractors was initially wholly owned by Schreiner Airways B.V. of the Netherlands. In 1973, however, it became a company with 40 percent Nigerian holding, which rose to 60 percent in 1976; and in January 2004, Canadian Helicopter Corporation, CHC bought over Schreiner Airways and also acquired 40 percent holding in Aero Contractors while the majority 60 percent shareholding remained with Nigeria’s Ibru family.

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In service offering, the airline, over the years, metamorphosed from rendering air chartered services to church missionaries throughout the country and to the Niger Pools to transport betting coupons to Lagos, to offering diversified services to the then embryonic oil and gas industry by ferrying seismic crew in the Delta area of the River Niger; and later ventured into scheduled operations both on the domestic and international schedule passengers services in 2000, flying to 13 destinations with its Boeing 737-400, Boeing 737-500 series and De Havilland Dash 8-Q200, De Havilland Dash 8-Q300, De Havilland Dash 8-Q400 aircraft, respectively.

At some point, it innovatively came up with very cheap online booking rates for passengers who could plan their trips and book ahead. Aero also engaged its passengers through promotional fares and giving away free tickets to encourage current and prospective passengers to keep patronizing the airline. Continuing its metamorphosis and historical trajectory, Aero Contractors became wholly owned by the Ibru family on July 1, 2010.

This is sequel to Canadian Helicopter Corporation, CHC’s sale of its interests in the airline to the respected Ibru family. This development became a turning point for the company for the good as well as for the bad and for the ugly.

But, beneath the surface, things seem to have taken a turn for the worse since that time. It is becoming more and more apparent that the fortunes of the company have nosedived and the airline has been oscillating from one crisis to another which, in turn, has negatively affected its ability to deliver seamless travel experiences to its customers.

It is needless to say that the brand equity of the carrier has been eroded over recent years.

 Sanusi

Last line

Despite AMCON’s take-over and injection of a total of N20 billion, the airline has still been going through financial difficulties.

Wole Shadare