The Nigerian government said on Friday that Arik Air, the recently acquired airline, was on the brink of collapse with a pile of debts and months of unpaid salaries.
“Following its intervention yesterday, it has now been gathered that virtually all of Arik’s trade creditors are being owed, staff salaries have not been paid for between 4- 6 months, and of the 28 aircraft in Arik’s fleet, only 10 are in operation,” AMCON said.
“Due to AMCON’s intervention, flights are operating and the insurance cover for the aircraft which would have expired on Sunday, 12 February has now been sorted and trade creditors and fuel marketers have been assured that all indebtedness will be looked into; they have offered to support the new management to get operations run smoothly. Flight schedule may therefore be realigned to match the 10 aircraft in the fleet, while also sorting out the myriad of problems confronting the airline.
“It is obvious that without Government intervention Arik would have virtually stopped operation by Monday of next week.
“AMCON is making efforts to return the aircraft in various parts of the world in repair yards, with the aim of stabilizing the airline to offer safe, secure and timely services to customers”