in Business & Finance

Arik Air gets $4.7 million injection from AMCON

Posted 10 May 2017 · Add Comment

Arik Air has received an injection of NGN1.5 billion (USD4.7 million) from the Asset Management Corporation of Nigeria (AMCON) since being taken over by the state-owned body, reports ch-aviation.

AMCON took over management of the airline in February this year, after concerns that the business was failing. CEO Roy Ilegbodu said that when AMCON took over, it had paid out between NGN60 - 75 million (USD188,000 - 236,000) in customer refunds per week.

Ilegbodu was full of praise for AMCON's role, and was critical of Arik Air's previous management. The new management team has been working on appeasing creditors and paying outstanding staff salaries. Ilegbodu added that it had been troubling to discover just how few operational aircraft the airline had.

"It was quite interesting and disturbing for an airline with 30 airplanes on its books with only 10 functional," Ilegbodu said.

Arik Air has scaled back its international operations in a bid to reduce operating costs, and Ilegbodu said that they were in no hurry to scale back up. He said they would wait until the situation with creditors was normalised and a KPMG audit had been completed.

* required field

Post a comment

Other Stories
Advertisement
Latest News

Ethiopian Airlines CEO issues statement

Ethiopian Airlines CEO, Tewolde GebreMariam, has released a statement after the crash of Ethiopian Airlines flight 302.

Mission possible: taking aid to a new level...

There’s a new era in air support opening up to the humanitarian community in Africa. David Oliver reports.

New rules for checking in bags at O.R Tambo International

New rules for checking in bags of irregular shape and size will be applied at O. R. Tambo International Airport from March 25, 2019.

Ethiopian Airlines refutes ‘wrong reporting’

Ethiopian Airlines has confirmed that Ethiopian pilots have completed the Boeing recommended and FAA approved differences training from the B-737 NG aircraft to the B-737 MAX aircraft before the phase in of the B-737-800 MAX fleet to

Honeywell's X Factor on the right wavelength

Honeywell is offering a new speedy JetWave installation service in South Africa. Steve Nichols reports.

INTRO Aviation partners Corsair for future growth

Convinced of the growth and development potential of the French long-haul airline Corsair, INTRO Aviation, the German private aviation company, has decided to become the main shareholder, alongside TUI group. The announcement was

Connect MEIA SK1402010519
See us at
Connect MEIA BT1402010519