Nigeria loses N20B in Aero Contractors as the airline collapses

Nigeria loses N20B in Aero Contractors as the airline collapses

This is a big casualty of first mismanagement and secondly dollar policy of President Buhari. It does not make sense to run an airline in Nigeria right now.

After over five years of been in murky waters due to the diversion of funds and inflation of aircraft price by its the management, Aero Contractors has finally announced its plans to suspended flight operations from tomorrow, Thursday, September 1, 2016.

The airline, which was taken over by the Asset Management Company of Nigeria (AMCON) Saharareporters gathered took the decisive decision when its current management led by Capt. Fola Akinkuotu as the Chief Executive Officer (CEO), could not rescue the airline from going further down.

A source close to the airline confided in our correspondent today that AMCON debt in the troubled airline has grown to N20 billion from the initial N11 billion in 2011 when AMCOM took it over.
The source said that with the initial N14 billion, AMCON had 60 per cent shares in the airline and with the current N20billion, the source said AMCON had completely taken over the running of the airline and decided to liquidate it.

In a statement, the management of the airline announced the suspension of its “schedule services” from September 1, 2016.

The statement said the depreciation of naira within the last six months has made it impossible for the airline to achieve its operational targets.

The airline said, “The impact of the external environment has been very harsh on our operational performance, hence management decision to suspend scheduled services operations indefinitely effective September 1, 2016, pending when the external opportunities and a robust sustainable and viable plan is in place for Aero Contractors to recommence its scheduled services.

“The implication of the suspension of scheduled services operations extends to all staffs directly and indirectly involved in providing services as they are effectively to proceed on indefinite leave of absence during the period of non-services.

“We are aware of the impact this will have on our staff and our highly esteemed customers, hence we have initiated moves to ensure that we are able to return back to operations within the shortest possible time, offering reliable, safe and secure operations, which the airline is known for.”

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