FG shops for N2.4b to pay off Aero Contractors workers

The Federal Government is shopping for N2.4 billion as severance benefits of workers of Aero Contractors Airlines that have been asked to go on ‘indefinite’ leave.

There are two possibilities here. Paying off the workers suggests that the airline may not come back if the government is already shopping for the amount to pay off the over 1, 200 workers who barricaded the airline’s headquarters at the Murtala Muhammed Airport, Lagos to ask for their severance benefits.

This is coming as First Nation Airways said it is undergoing maintenance on A319 fleet, adding that the maintenance exercise would be completed on or before September 15^th, 2016.

The management of the airline in a statement said the carrier planned the maintenance action well ahead and notified passengers of the situation, stressing that it notified the Nigerian Civil Aviation Authority (NCAA).

The airline lamented that current foreign exchange constraints, coupled with other 70 per cent devaluation of Naira partly contributed in no small measure to the development.

The airline’s remains on track to reinstating service as advised here in, stressing that the firm’s plan remains on track to re-instating service.

The second possibility is that the government could pay off most of the workers with plans to start on a clean slate by employing fresh workers in its turnaround plans.

Most of the Aero workers were seen dancing, cursing and asking the Assets Management Corporation of Nigeria (AMCON) to pay them their three months salaries and other entitlements, saying they were ready to leave the company any time they are settled.

Some of the workers were locked inside the premises of the company as they vowed not to leave. Other workers were seen passing food to them as they had been there since Wednesday.

Speaking to Woleshadare.net at the protest ground, President, Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), Benjamin Okewu said the unions had petitioned the Economic and Financial Crimes Commission (EFCC) on the need to investigate the former management of the airline over graft that he alleged crippled the carrier.

ATSSSAN and National Union of Air Transport Employees (NUATE) had caused a forensic audit that was carried out but which result was not made public. The report investigated how tax payers’ money invested in Aero was been embezzled by a few individuals.

The unions accused Oceanic Capital of using Aero’s name to take a loan from the defunct Oceanic Bank and transferred same to Oceanic Capital, which went on to purchase some planes and leased them back to Aero through Oceanic Leasing Company.

 

“This can be confirmed on the tag printed on the plane clearly stating Oceanic Capital as the owner of the plane. It was this loan that almost killed Aero not CHC as being speculated.”

 “This loan was allegedly used to purchase seven B737-500from Arizona at an average cost of $12million each, but from the website of the firm from where the aircraft were purchased, they were going for about $4 million each.

 “From records, a total of seven airplanes were purchased, but only six were received by Aero from Oceanic Capital on lease. Aero was paying a lease rate to Oceanic Capital monthly which almost wrecked the company and made CHC to withdraw as technical partner and took away all their equipment.”

 The group further alleged that when Oceanic Bank was taken over by ECOBANK, all document relating to the deal were destroyed and the debt transferred to Aero

 The Nigerian Civil Aviation Authority (NCAA) has come in defence of airlines, saying they are not folding up‎ but “merely suspending their operations temporarily to enable them undertake certain operational overhaul and strengthen their overall operational outlay.”

 A statement by the Director-General of NCAA, Capt. Muhtar Usman explained that Aero Contractors Ltd., at present has only one serviceable aircraft, adding that this is in contradiction to the Nigerian Civil Aviation Regulations (Nig.CARS) which stipulates that no airline operator shall carry out schedule commercial operation with only one aircraft.

 Usman noted that the minimum acceptable number is three aircraft.

“In other words, any airline with one aircraft is in contravention of the Authority’s regulations therefore cannot be adjudged to be capable of providing safe operation. The only option available is to suspend your operations temporarily while other aircraft arrive in due course.”

 He however, stated that NCAA’s Regulations provides a window for such operator to embark on non- schedule operations in the interim.

 He disclosed that the First Nation Airlines on its part is in the middle of an Engine Replacement Programme for one of its aircraft, stressing that another aircraft is due for mandatory maintenance as its allowable by the Regulatory Authority.

 In these circumstances, these airlines he said clearly cannot continue to undertake schedule operations, hence the inevitable recourse to self-regulatory suspension.

 “The Nigerian Civil Aviation Authority (NCAA) wishes to reiterate that on no account will it compromise safety and security of airline operations in the airspace.

 Every facet of the Nigerian Civil Aviation Regulations (Nig.CARS) and Standard and Recommended Practices (SARPs) must be adhered to with due diligence.In addition, everything has been put in place to continue our to ensure compliance.”