Arik, Aero too big to fail, lawmakers tell govt.
- Laud AMCON’s intervention in carriers
- We have capacity to handle all aircraft in Nigeria-Ado Sanusi
The Chairman of House of Representatives Committee on Banking and Currency, Sir Jones Chukwudi Onyereri has pleaded with the Federal Government to ensure that troubled Nigerian carriers, Arik Air and Aero Contractors are revived.
Onyereri made the disclosure when his committee visited the airlines’ facilities in Lagos to ascertain the level of support they have received from the Assets Management Corporation of Nigeria (AMCON) in stabilising two airlines that were at the verge of collapse before government’s intervention.
Arik has debts in excess of N300 billion to some banks, excluding fuel suppliers, lessors and maintenance companies.
For Aero, the decision to take over the management of the company was said to be in furtherance of AMCON’s responsibility of acquiring eligible bank assets and putting them to economic use in a profitable manner.
Both carriers last year went through their most difficult period which necessitates Assets Management Corporation of Nigeria (AMCON) to come to their rescue to save them from total collapse.
Fielding question from reports, the committee chairman stated that they were pleased with the stability of the airlines and satisfied with the progress that the two companies had made about a year after the intervention.
Engineers strip bare A B737-500 undergoing C-check at Aero Contractors hangar at Lagos airport.
His words, “The point is, these two airlines are too big to fail and any wise government will not allow them to fail. The primary thing about airline business is safety. So, to that extent, we are comfortable with them. You saw all the spares they have in their warehouse, it is encouraging; we are completely impressed with what we saw here”.
He lauded Aero for the expansion of its existing hangar to carry out aircraft C-Checks as engineers of the nation’s oldest airline were seen stripping a B737-500 bare for the commencement of comprehensive maintenance on another Boeing airplane less than two months after the it successfully carried out the first C-check on any airplane for the first time in West and Central Africa.
According to Onyereri,” For one C-check, I understand goes for about $1.8 million. That is huge. That is a lot of savings for the country and we believe that we must do everything to ensure they don’t close shop”.
“That is the essence of oversight visit because when we look at the books, you will say why do you spend so much money and advise that they should close shop. But now that we have seen it and seen that there is room for expansion and indeed that things are actually happening, we have no reason than to go back and tell our members to take a second look at it”, he added.
Speaking on the near extinction of the airline, Managing Director, Aero Contractors Captain Ado, Sanusi they had to look inwards for survival.
“Our engineers are capable of conducting a c-check. The limiting factors were faced squarely and we conducted the first C-check; now we are doing the second and this like I have always said is the game changer in the industry because other operators can utilise this facility and save the country foreign exchange and also give Nigerians opportunity to allow young engineers to come in and work. So, it is also opportunity for job creation”.
“We are very excited for the committee coming here to see what we have achieved in a space of time. We will like their support so that government understands the importance of aviation industry in the economic growth of a nation which I believe the committee is looking at also”.
The airline chief stated that they have the capacity to handle all the aircraft in Nigeria, adding that they have already talked to a lot of operators.
A lot of operators, he said, have shown interest to patronise the airline which could bring down the cost of ferrying their airplanes overseas for maintenance by 60 per cent.
“They want to bring their aircraft here. We have talked to Air Peace, Medview. We have talked to a lot of airlines and they are all willing to come and patronise what is made in Nigeria and I think it is something we should look at. Nigeria should be a hub. This is the first c-check conducted in West and Central Africa and we will continue to grow on it. We want to look at other places we can grow our capacity”, he added.
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