Tag Archives: arik

Apart from N300 billion AMCON debt, Arik owes another N25 billion – Official

Posted on by
Reply

The Asset Management Corporation of Nigeria, AMCON, on Monday said Arik Air, under its previous management, owed the International Air Transport Association, IATA, $78 million (about N25 billion).

Simon Tumba, Media Consultant to Arik Air, gave the figure while speaking with journalists in Lagos.

The airline was on February 9 taken over by the Federal Government under the auspices of AMCON as a result of its huge debt profile.

AMCON appointed Roy Ilegbodu, a veteran aviation expert, to manage the airline under the receivership of Oluseye Opasanya, a Senior Advocate of Nigeria.

Mr. Tumba said the debt was for all aviation services provided under the platform of IATA, which recently suspended the airline from its Billing and Settlement Plan (BSP) and Cargo Account Settlement System (CASS).

“Arik Air under the former management was owing everywhere they operated. Apart from the over N300 billion owed to AMCON, the airline also owes about N50 billion to Nigerian banks and another $78 million to IATA.

“The airline was also in credit to their fuel suppliers and was not able to pay staff salaries for months.

“There was no good corporate governance in Arik as most decisions were single-handedly taken by the executive chairman,’’ he said.

According to him, out of the almost 30 aircraft in the airline’s fleet, only about 10 are currently serviceable, which made the new management to reduce its routes and flight operations.

He said that the new management also discovered that Arik had no record of gains and losses of operations carried out in 2015.

Mr. Tumba said the management in collaboration with AMCON had appointed KPMG to carry out a forensic audit on the airline, and the result would be out in 10 weeks.

“AMCON is not interested in liquidating Arik Air. We believe that the airline, which has one of the youngest fleet in Africa, can be turned around through good corporate governance and financial discipline.

“The current management is looking at the backlog of salaries owed staff because the staff should be motivated to get the airline running properly.

“The current management is working with government to add five aircraft to the fleet to increase its size and the airline’s routes.

“We have also resolved the issue of fuel supply, which has improved Arik Air’s flight operations since the takeover,” he said.

 

Source: NAN

AMCON, Arik and an urgent public need – By Lekan Fatodu

Posted on by
28

To many close observers, particularly the travelling public, the news of Arik Air, Nigeria’s biggest airline, being taken over by the Asset Management Corporation of Nigeria (AMCON) over the reported huge indebtedness of the airline wouldn’t come as a surprise.

For the past few months, the wholly Nigerian airline has been in the news more for problematic reasons than records of any major accomplishment.

The airline’s challenge took an ugly turn in January when passengers on both its local and international routes reeled out in anguish about being stranded at various airports. Others who were lucky to fly out of the airports later discovered, on getting to their destinations, that their luggage didn’t arrive with them.

Things actually got so messy that at a stage some passengers, out of frustration, almost lynched a manager of the airline at the Murtala Muhammed International Airport in Lagos. Yes, it was really that bad.

Obviously the adverse effects of the airline’s ineptitude on the socio-economic activities of passengers most of whom operate in different sectors of the Nigerian economy presently gasping for breath in the midst of a nasty recession has proven to be enough to make many people go gaga.

Sadly though, the management of the airline itself did practically nothing to tackle the real issue afflicting its services in a manner that will deepen public understanding, engender necessary solution and prevent such debacle that played out from repeating itself.

And this, amongst other now failures of the airline that are now public knowledge, has unsurprisingly resulted in the intervention of AMCON to rescue the airline from the sea of troubles threatening to drown it.

Following is what AMCON had to say after taking over at the airline.

“The Asset Management Corporation of Nigeria, AMCON, has discovered deep rooted rot at Arik Airlines, which would require over N10 billion to fix before the largest local carrier would resume full and uninterrupted flight operations to its regular routes across the country and beyond.

“The situation is so bad that only nine aircraft out of the 30 in the fleet of the airline is operational. 21 of them have either been grounded, gone for C-check in Europe among other forms of challenges.

‘’As if these problems are not enough, the airline does not have money to procure aviation fuel for the nine operational aircraft because no dealer wants to sell aviation fuel to Arik if it is not on cash-and-carry basis.

‘’This also calls for public understanding because flight schedules may be realigned based on the nine aircraft that are available, technically sound and ready for flight operation.

“It was also discovered that Arik also owes its technical partners and also in perpetual default in its lease payments and insurance premium, leading to regular and embarrassing squabbles with different business partners, which account for why 21 aircraft are off the fleet for different reasons.

“All these problems, in addition to huge staff salaries, which have remained unpaid for 11 months; vendors that supply different items to Arik Airlines that are also owed, meant that Nigerians may have to tarry awhile to allow the new management clean up the huge mess at the airline before Arik would finally resume uninterrupted flight.”

Expectedly, the dissolved management of Arik hit back at AMCON dismissing most of the claims made by the government agency. According to it, AMCON’s excuses for the takeover were well crafted decoy made to enable the easy conversion of the private airline to a national carrier.

Indeed, the present government has mooted the idea of running a national carrier as a way of advancing the economy by harnessing and maximising the massive benefits in the country’s aviation sector.

But the way the Nigerian Airways, the rested national airline, and many other monumental and profitable public assets were run aground, has cast doubt in the minds of many on the government’s ability to operate profitably a new national airline or any business enterprise for that matter.

However, the assessment of the efforts of AMCON now that the government agency is on the wings of Arik should be the major test of the workability of the national carrier proposition.

Actually, before any other thing, the main focus of the new AMCON team at Arik should be to make a fast move in resolving all the issues that have hindered the airline from reaching its true potentials.

It is really disheartening seeing that an airline that enjoys between 55-60 per cent share of the air transport market in Nigeria is faced with challenges that are in the real sense a no-brainer, especially when most of the other airlines that constitute the remaining 40 – 45 market share are not better off.

The Nigerian government and air travellers who use the aviation line for various businesses and engagements need reliable, efficient and safe air services to support in building a virile economy.

Countries that are deemed prosperous attain their glorious heights by ensuring sound and excellent operations in all critical areas of the economy amongst which the aviation sector is accorded a worthy attention.

The situation of Arik is a peculiar one given its position amongst others and the condition of its workforce which is said to be over 1,800 people, many of whom were being owed salary arrears of four to six months at the time of the takeover. That is why the new AMCON team should direct their energy and expertise towards the urgent need to deliver a truly dependable Arik that will meet the expectations of the majority of Nigerian air travellers.

AMCON Seeks Private Investors For Arik Air

Posted on by
1

The Asset Management Corporation of Nigeria (AMCON) is shopping for investors for troubled carrier Arik Air.

AMCON told the Senate Committee on Banking, Insurance and other Financial Institutions that Nigeria’s biggest airline would have stopped flying within the next three weeks if it did not intervene.

AMCON, on February 9, announced the removal of the Arik Air management and appointment of a receiver-manager.

Committee Chairman Rafiu Ibrahim noted that it appeared that the takeover of the airline was belated.

AMCON Managing Director Ahmed Kuru, who briefed the committee, said that contrary to some claims, Arik owed AMCON N147 billion.

Kuru also said the airline owed some local banks over N165 billion. Foreign debts, he said, stood at $81 million.

The airline owes over 2,000 staff between six and seven months salary arrears, Kuru said.

The AMCON boss noted that negotiations were ongoing on how to immediately resolve the salary arrears.

Kuru said the airline had 30 aircraft, but only 10 were in operation.

The AMCON boss noted that prior to the interim takeover of the airline, it was obvious that it could no longer meet its financial obligations.

He said the airline frequently relied on collection of fares from passengers before it could buy such basic things as aviation fuel.

Kuru insisted that it was obvious that the incessant cancellations and delays of flights was as a result of the airline’s inability to buy aviation fuel.

He dismissed the insinuation that the Federal Government was planning to make Arik Air a national carrier.

Insisting that there was no plan to make the airline a national carrier, Kuru described it as “too problematic for the government to handle.”

He said: “Despite all the things we have done to ensure that Arik Air stays in business, they have not done their part in meeting their own obligations. Arik Air is owing up to seven months salaries.

”They have refused to pay salaries and also refused to ensure that their loans are repaid. We could not just sit back and allow an important airline with about 30 aircraft and covers 55 per cent of all routes in Nigeria to go down. From the records, Arik makes over N7 billion annually.

”We are talking to people to see how they can acquire the airline. They came. But when they saw the records of what was on ground, they decided to suspend everything, pending when we will resolve some of the issues bedeviling it.

”We have deployed people there to manage it, pending when we can stabilise it and then bring in investors to take over. We discovered that out of the 30 aircraft of the airline, only about 10 were functional. Some of them were not in Nigeria. They have refused to meet all their obligations, even the insurance payment. They did not even have money to buy aviation fuel.

”What they did was that they collected money from passengers and then quickly use the monies realised to buy fuel. This is how they have been running the place and these were some of the things we met on ground.

”The first thing we did when we moved in was to address the payment of salaries of staff. Remember some of them were owed for up to seven months. The staff of the airline are very pleased with what we have done.

”We are hopeful that with an annual profit of about N7 billion and if the monies are not laundered, I think we can pay back the loans in time. AMCON debt is about N147 billion. There are local banks which Arik Air is owing about N165 billion. These banks collect all the monies they make.

”The issue of converting the airline to a national carrier is not on the table. Arik is too complicated to make a national carrier. The total asset worth of the airline right now is less than N40 billion.

”Government does not have plans to do that. The interest of government is that we must continue to fly and people must work. They have about over 2,000 staff.

”They do not need more than N10 billion to stabilise their operations. Within the next three months, they will be able to pay back what we have put in right now. In national interest, Arik Air should be allowed to fly.”

The AMCON boss said: “Within the next two to three weeks, Arik Air should have up to 15 or 16 aircraft flying. Arik Air cannot compete internationally. They do not have the kind of services other airlines have.”

Kuru said the suspension of international flights became necessary because the airline cannot cope.

He said the airline spends about N1.6 billion on aviation fuel on 12 international destinations.

He said AMCON is certain that the airline lacked the capacity for international flights.

He said: “We are thinking of suspending international flights. Arik Air needs about N1.6 billion to buy fuel for international routes. We cannot do that right now. By the time we manage it for about six months and the airline can now survive, then we can sit down and talk about where to go from there.

”Based on what we have achieved in just one week, we are hopeful that in the next three weeks, the issue of delayed or cancelled flights will be things of the past.

”We are carrying everybody along. At the end of the day, we want to return it to profitability. We need to emphasise one fact – that the only way we can recover our debts is for Arik Airline to continue to fly. The banks have come to realise that this is important.

”Government has a responsibility to ensure that it intervenes whenever there is any threat to national interest. Within the next 30 days, we will be going to places we have not been to in the last three years.”

The committee praised the move to take over the airline by AMCON.

It, however, noted that the takeover time appeared to be belated.

Senator Rafui Ibrahim compared what he described as the mess in the airline with the alleged fraud perpetuated by the immediate-past National Security Adviser (NSA), Col. Sambo Dasuki.

He said: “Was the takeover not done rather too late? From what you have given us, this is worst than Dasukigate. It appears what is happening in private sector is worst than that of the public sector.”

The AMCON boss said that the Central Bank of Nigeria (CBN) was prepared to support the turnaround of Arik Air.

Kuru also said: “In line with AMCON’s statutory mandate, the non-performing loans of Arik Air were acquired in 2011 from two banks:

”Union Bank Plc N71billion, Keystone Bank Limited N14billion (transaction originated by defunct Bank PHB). Total amount N85billion

”The facilities were granted to Arik for purchase of additional aircraft and to refinance existing term loans. The default in repayment posed systemic threat to the banks and indeed the Nigerian economy.

”The principal promoter of Arik Air is Sir Johnson Arumemi-Ikhide. Apart from AMCON, Arik is also currently indebted to other commercial banks, including Standard Chartered, Zenith Bank, Ecobank and Access Bank, to the tune of N165billion.

”N26billion is owed to the Federal aviation agencies and regulations. $11million is owed to European aviation agencies and service providers. $20million owed to Lufthansa Technique.

”AMCON also acquired three other non-performing loans of companies in which the principal promoter is Sir Johnson Arumemi-Ikhide.

Rockson Engineering (N107billion), Ojemai Farms Limited (N8.6billion). Ojemai Investment Limited (N1.9billion). Total exposure of Sir Arumemi-Ikhide to AMCON is N263. 7 billion.

”In September 2011, AMCON restructured Arik’s debt from N85 billion to N70 billion as a nine-year term loan running at 12% per annum. ‘ Other terms of the restructure included the following:

”AMCON to appoint a resident Monitoring Manager who shall have the authority to call for any of Arik’s records for examination.

”Arik to provide three-year record of its remittances to FAAN.

”Arik defaulted on the term of the restructure and failed to make the monthly repayment as agreed.

”In May 2013 AMCON sourced N26billion of the CBN/PAIF through BOI on behalf of Arik.

”AMCON disbursed N21.38billion of the BOI loan to Arik as working capital.

”Out of this amount, N2.4billion was meant for reconfiguration of two aircraft from passenger to cargo carriers. This was never done as the funds were diverted by Arik management and is now the subject of EFCC investigation. Both aircraft were abandoned in the UK.

”In December 2015, due to accrued interest and unpaid principal, a second restructuring was proposed for Arik debt to reduce the debt from N138billion to N90billion.

”Proposal awaiting CBN approval.

“This was proposed based on Arik’s plan to do a private placement and subsequently do an IPO within a period of six months. Based on that, they were expecting N44billion from Afrexim as a bridge. None of this happened as Arik could not comply with any conditions given to them.

“In spite of the leniency and good faith demonstrated by AMCON throughout the negotiations, Arik refused or neglected to adhere to the terms of settlement.

“AMCON continued to bear the burden of repaying the B01 loan at 1% interest rate without any corresponding commitment from Arik. So far, AMCON has paid N9.05billion on behalf of Arik. Refusal to cooperate with the AMCON resident Monitoring Manager. Refusal to disclose financial information to AMCON.

”Total recoveries from Arik till date N4.6billion (only 3.2% of current exposure). Total repayment by Arik in the last 12 months- N50million only.

”As at December 2016, Arik’s debt in AMCON stood at N146billion due to mounting interests and unpaid principal.

“The consolidated exposure of debtor-companies in which Sir John Arumemi-Ikhide is the principal promoter in AMCON stands at N263.7billion.

“This figure excludes Arik’s indebtedness to other banks, aviation authorities (local and foreign), vendors, contractors and workers.

“As at December 2016, Arik’s debt in AMCON stood at N146billion due to mounting interests and unpaid principal.

“The consolidated exposure of debtor-companies in which Sir John Arumemi-Ikhide is the principal promoter in AMCON stands at N263.7billion.

“This figure excludes Arik’s indebtedness to other banks, aviation authorities (local and foreign), vendors, contractors and workers.

“Arik has about 30 aircraft, the largest fleet in Nigeria. Holds approximately 55-60% of the air transport market in Nigeria.

“Serves 18 domestic and 11 international destinations, including Johannesburg, London, Dubai, and New York City.

“Estimated revenue at N7billion monthly”.

AMCON takeover of Arik Air “necessary but belated”, says Nigerian Senate

Posted on by
13

The Senate Committee on Banking, Insurance and Other Financial Institutions yesterday reviewed the ugly details that crippled the operations of Arik Air and submitted that the intervention announced by the Federal Government last week was late and belated.

The committee, which however expressed support for the intervention noted that the airline could have averted the unfortunate situation if it had paid attention to issues of financial management and applied best practices fiscal management.

Chairman of the committee, Rafiu Ibrahim said the Senate had always stood in support of policies that would promote the welfare and living standards of Nigerians.

AMCON’s Managing Director, Ahmed Kuru, revealed that contrary to earlier claims, the troubled airline is owing AMCON N147 billion and other local banks to the tune of at least N165 billion adding that the foreign debts of the airline stood at $81 million.

The AMCON boss also told the committee members that the airline is owing over 2,000 staff seven months salary arrears. He said negotiations were currently ongoing on how to immediately resolve the arrears.

Kuru also revealed that of the 30 aircraft owned by Arik, only 10 were operational. According to him, the airline frequently relied on collection of ticket fees from passengers before they could buy aviation fuel. He partly blamed the incessant cancellation and delay of flight on its inability to buy aviation fuel.

Kuru, while dismissing claims that the Federal Government was planning to make the airline a national carrier, said it was too problematic for any government to handle.

He said within the next two to three weeks, the new management of the airline will put 15 to 16 aircraft back to the 18 nationwide routes.

He said: “Within the next two to three weeks, Arik Air should have up to 15 or 16 aircrafts flying. Arik Air cannot compete internationally.

They do not have the kind of services other airlines have.

“Despite all the things we have done to ensure that Arik Air stays in business, they have not done their part in meeting their own obligations.

“They have refused to pay salaries and also refused to ensure that their loans are repaid. We could not just sit back and allow an important airline with about 30 aircrafts and covers 55 per cent of all routes in Nigeria to go down. From the records, Arik makes over N7 billion annually.’’

Newly appointed chief executive officer of the airline, Mr. Roy Ilegbodu, who described the state of the airline as alarming disclosed that its performance stood at 15 per cent as against 25 per cent minimal requirement in the aviation sector.
Apart from AMCON, Arik is also currently indebted to Standard Chartered, Zenith Bank, Ecobank and Access Bank.

Days after Arik takeover, AMCON takes over OAS Helicopters.

Posted on by
43

The Asset Management Corporation of Nigeria (AMCON) has taken over Odengene Air-Shuttle Services (OAS) Helicopters in Lagos.

This comes five days after the agency took over Arik Airlines, which is currently immersed in heavy financial debt burden.

On Tuesday, AMCON sealed the head office of the company in Maryland, Lagos.

A court order on the company’s office reads: ‘POSSESSION TAKEN TODAY 14/2/17 BY AMCON COURT ORDER ON SUIT NO. FHC/4CS/1139/2016?.

NAN said it could not confirm if OAS is indebted to some banks, but listed the company among the airlines that received intervention fund from the federal government during the tenure of former President Goodluck Jonathan.

OAS is one of the leading helicopter chatter service companies in the country.

For some time now, the airline, which carries about 55 percent of the load in the country, has been going through difficult times.

These are attributable to its bad corporate governance, erratic operational challenges, inability to pay staff salaries and heavy debt burden among other issues.

AMCON took over Aero Contractors in 2016, but the airline has not regained stability since then.

Arik’s new management hires KPMG to audit airline’s financial status

Posted on by
Reply

The new management of Arik Air has appointed KPMG, one of the big four audit firms in the world, to undertake a forensic and diagnostic audit to ascertain the true status of its finances.

The audit will among other objectives cover “the position of assets and liabilities, and their utilisation; recording and utilisation of loans, propriety of third party transactions; fraud controls over Procure to Pay (‘PtP’), agents and business partners and financial reporting and Arik Air’s financial position as at January 31, 2017?.

The report is expected to be delivered within 12 weeks.

“We have hired KPMG to look into the financials of Arik with a tooth comb and advise us with verifiable facts on what went wrong with the airline. We need to do that because the outcome will help us plug the loopholes and stabilise the airline,” the new management said via a statement.

“The whole intention is to identify what went wrong with Arik to enable the new management to bring it back to full operations.”

The federal government, through the Asset Management Company of Nigeria (AMCON), intervened last week in the airline following complaints of huge indebtedness of the airline to various creditors and the frequent interruptions in its operations, and the concern to safety and security.

AMCON sets out to cut down Arik Airline’s flight operations

Posted on by
Reply

The new management of Arik Airline will this week scale down flight operations to realign with the number of serviceable aircraft currently at its disposal.

The new schedule, The Guardian learnt, will mean smaller number of flights per day, compared to about 100 to 120 the airline ran some months ago.

With limited frequencies on some high-traffic domestic routes, and temporary suspension of others including the internationals, passengers may be faced with limited options. There may also be further reduction in the revenue accruing to the airline, regulators and government agencies.

Arik, the largest carrier in West and Central Africa, was accused of bad corporate governance, erratic operational challenges, inability to pay staff salaries and a heavy debt burden, among others.

Upon AMCON’s takeover, it was discovered that the airline’s 28 aircraft fleet size is left with 10 functional planes, with 10 in overseas and eight grounded at the Lagos airport.

The Federal Government on Friday said plans were on to return the 10 aircraft stuck overseas over unpaid maintenance cost to boost the capacity of the airline.

Sources at AMCON confirmed that a temporary scale-down of operations had been agreed pending the arrival of more aircraft. The measure is to ensure efficient services and put an end to the era of flight cancellations.

A source, who would not want to be mentioned, said: “The management is planning to stabilise its operations by scaling down flight operations based on the number of serviceable aircraft at its disposal, until more aircraft return from C-check and maintenance yards abroad. Therefore, a new schedule will be announced in the next few days to accommodate its existing fleet of 10 aircraft.”

While the airline’s Lagos-New York services had been suspended, the Lagos-London and Lagos-Johannesburg flights ran at the weekend.

Head of the Corporate Communications Department of AMCON, Jude Nwauzor, stated that the “mess” met on ground was actually bigger than anticipated, and that it would require over N10 billion to fix the rot before the airline could resume full and uninterrupted operations to its regular routes across the country and beyond.

“It appears that unlike previously recorded, Arik has debts in excess of N300 billion, especially with some banks, excluding fuel suppliers, lessors and maintenance companies.

“Due to government’s intervention, operations are continuing and the insurance cover for the aircraft which would have expired on Sunday, 12 February has now been sorted out. 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.

Meanwhile, airline operators have blamed the misery of Arik Air and Aero Contractors on the burden of multiple charges and taxation forced on the local airlines.

Chairman, Airline Operators of Nigeria (AON), Capt. Nogie Meggison, alleged that despite the challenges of economic recession and unfriendly business environment, the system continued to “manipulate, feasting on and pushing the financial envelope of airlines by inflicting multiple taxes, charges and levies to the extent that airlines are now groaning under the pressure and some are going bankrupt.”

Meggison added that the airlines had been complaining about the same issue over the years that had culminated in sending of over 27 of them under in the past 25 years.

“This is without recourse to the fact that aside from all the multiple charges, levies and fees, airlines still have to pay mandatory statutory corporate taxes to relevant agencies.”

He said if the difficult environment continues, none of the airlines would survive for long.

AMCON: 10 billion Naira needed to revive Arik

Posted on by
2

The Asset Management Corporation of Nigeria (AMCON) on Sunday said it had discovered deep rooted rot at Arik Airlines.

The organisation said it would require over N10 billion to fix the rot before the largest local carrier could resume full and uninterrupted flight operations.

The asset company made the disclosure in a statement signed by Jude Nwauzor, its Spokesman.

AMCON took over the company on February 9, saying Arik was indebted to the tune of over N300 billion.

The statement said the situation was so bad that only nine aircraft out of the 30 in the fleet of the airlines were operational.

According to the statement, 21 of them have either been grounded, gone for C-check in Europe, among other forms of challenges.

“As if these problems are not enough, the airline does not have money to procure aviation fuel for the nine operational aircraft because no dealer wants to sale aviation fuel to Arik if it is not on cash-and-carry basis,” it read.

“This also calls for public understanding because flight schedules may be realigned based on the nine aircraft that are available, technically sound and ready for flight operation.”

“All these problems in addition to huge staff salaries, which have remained unpaid for 11 months; vendors that supply different items to Arik Air that are also owed means that Nigerians may have to tarry-a-while to allow the new management clean up the huge mess at the airline before Arik would finally resume uninterrupted flight.”

The statement quoted Roy Ilegbodu, a veteran aviation expert who is now in charge of the airline, as reassuring Nigerians that the issues, though daunting, would be gradually resolved.

He said once all the aircraft were back to the fleet, Arik Air would within the shortest possible time regain its pride of place as a leader among the comity of airlines in Nigeria.

It said the new management had settled the insurance cover for the aircraft which would have expired on February 12 and also met with different trade creditors as well as aggrieved staffers.

It called for public understanding as the management begins the tough job of ensuring that Arik is returned to full operational capacity within the shortest possible timeframe.

Arik Air owing ‘more than N300bn’ – AMCON

Posted on by
1

The Asset Management Corporation of Nigeria (AMCON) says Arik Airline’s debt is more than N300bn and that a large part of it is taxpayers’ funds.

The corporation announced its takeover of the management of the airline, which is Nigeria’s largest carrier, in a statement on Thursday.

According to AMCON, the airline will now be managed by Roy Ilegbodu, under the receivership of Oluseye Opasanya (SAN).

The corporation said it took over Arik’s non-performing loans – running into billions of naira – a few years ago, in exchange for a stake in the airline.

A breakdown of the statement by the digital media office of the presidency listed the “issues” surrounding the intervention as:

  • Arik Air is on the verge of collapse. On Wednesday February 8, 2017, Arik temporarily suspended flight operations to John F Kennedy International Airport, New York, United States.
  • Arik’s total debt profile: more than 300 billion naira?—?a large part of this is taxpayers’ funds in the form of bailouts. Arik constantly defaults in its lease payments and insurance, resulting in the regular confiscation of aircraft by lessors.
  • Arik currently has more than eight aircraft grounded for various reasons. This is one of the reasons for the flight delays and cancellations regularly suffered by customers.
  • Arik is owing staff salaries for several months. It has also been failing to remit tax deductions from workers’ salaries.
  • Arik habitually flouts regulators’ directives.
  • Arik is perpetually bickering with Aviation Unions including the National Union of Air Transport Employees (NUATE), the Air Transport Senior Staff Services Association of Nigeria (ATSSSAN) and the National Association of Aircraft Pilots and Engineers (NAAPE).
  • In summary, Arik Air is on the verge of collapse. On Wednesday February 8, 2017, Arik temporarily suspended flight operations to John F. Kennedy International Airport, New York, United States.
  • Arik’s total debt profile: more than 300 billion naira?—?a large part of this is taxpayers’ funds in the form of bailouts.

Another reason for the intervention is “to enable Arik return to regular, undisrupted operations; to avoid job losses; to protect investors and stakeholder funds; to rebuild the credibility of the Airline and its brand; to ensure sure safety and stability in Nigeria’s already challenged aviation sector”.

Arik Air vows to challenge Nigerian government takeover

Posted on by
Reply
The management of Arik Air on Thursday said it would challenge the taking over of the airline by the Assets Management Company of Nigeria (AMCON) in court.

Ado Sanusi, Senior Vice President, Arik Air made the disclosure at a joint news conference with the newly appointed receiver manager, Oluseye Opasanya, and the airline’s technical consultant, Roy Ilegbodu.

The asset company had on Thursday taken over the airline following its huge indebtedness to local and foreign creditors.

Mr. Sanusi said the airline had been served with a valid court order empowering AMCON to take over the company.

“As responsible citizens, we have obeyed the court order which appointed the Olaniwun Ajayi (SAN) as the receivership manager.

“We will comply but I want to make it clear that we have a right to challenge the court order.

“In the coming days, we will make our position known. It is a court order and we can challenge it and we will challenge it to the highest court of authority,” Mr. Sanusi said.

He added that while the legal battle would be on one front, the parties had agreed that Arik Air would continue to run without any disruption.

Also speaking, Mr. Opasanya said AMCON was on a rescue mission to re-position the embattled airline.

Mr. Opasanya said :”AMCON has been a creditor to Arik for sometime. It also has security over substantial parts of the assets of Arik.

“The debt of Arik to AMCON has not been paid and huge sums of money is owed.

“So AMCON, having consulted widely with government authorities, has decided to appoint me to preside over the affairs of Arik.

“So we have come to supervise the operation, sustain the operation, improve services and ensure that we support Arik with people of deep knowledge, experience and commitment in the airline industry.”

According to him, Arik plays a pivotal role in the airline industry and many Nigerians are currently drawing their means of livelihood from the company.

“We have addressed the workers and the management and we want to assure other stakeholders and members of the public that the desire of AMCON is to keep the airline flying.

“AMCON is willing to support the operation of Arik and together with the government, work to meet the immediate essential needs of the company, “he said.

On his part, Mr. Ilegbodu said Arik had 28 aircraft in its fleet but only 10 are currently being used for operations.

He said his duty as technical consultant was to get to the root of the problems bedeviling the airline to ensure its sustainability.

 

Source: NAN

Arik fails to pay compensation to passengers for baggage delay

Posted on by
Reply

The Nigerian Civil Aviation Authority (NCAA) says Arik Air has not compensated its passengers whose bags were delayed on the London-Lagos route in December.

According to Sam Adurogboye, spokesman of NCAA, Arik has also not paid the N6 million fine imposed on the airline for contravening the provisions of the Nigerian Civil Aviation Regulations (Nig.CARs).

The NCAA had on December 27 ordered Arik Air to pay the sum for violating part 19.7.2 and 19.17.2.1 (ii) of the Nig.CARs 2015.

The NCAA also ordered the airline to pay its passengers, whose baggage were delayed on the London-Lagos route between December 2 and December 4, $150 each as compensation.

It directed that the N6 million fine must be paid within seven days of receipt of the letter, while the $150 compensation to the passengers must be made within 30 days.

Adurogboye told NAN that the airline had not complied with the sanctions.

“The NCAA has done its part in sanctioning the airline in accordance with international civil aviation rules and regulations,” he said.

“However, Arik Air has a right to appeal against the sanctions and I am sure that they have done that and we have to wait until the determination of the appeal before taking any further action.”

Adurogboye also said that no formal complaint had been made to the NCAA concerning the recent incident involving some aggrieved passengers and a staff of Arik Air at the Murtala Muhammed International Airport, Lagos.

According to him, the NCAA is only concerned with regulating civil aviation and has no security outfit to prevent such incidents.

“We only appeal to aggrieved passengers not to take the law into their own hands,” he said

“There are various security organisations at the airport who are responsible for that but the duty of the NCAA remains that of air safety.”

Airfares Rise By 100 Per Cent As Workers Shut Arik

Posted on by
1

The plight of air passengers in the country worsened yesterday as Arik Air, the largest airline in West Africa, was shut down by protesting workers.

The workers, led by the National Union of Air Transport Employees (NUATE), the Air Transport Senior Staff Services Association of Nigeria (ATSSSAN) and the National Association of Aircraft Pilots and Engineers (NAAPE), among others, embarked on the industrial action in protest against alleged seven-month unpaid salaries and other anti-labour issues.

The crisis in the country’s aviation sector will mount pressure on the already troubled road transport system and increase costs with serious implication on prices of goods and services during the yuletide.

Disrupted services in the air transport business will also cut into the revenue of government and regulatory agencies, which depend on operational charges to sustain oversight functions.

A retired pilot, John Ojikutu said irrespective of the cost on operators and regulators, airlines were overdue for economic auditing, to put them in check and save the country’s airspace.

The passengers that have been battling with the effects of the aviation fuel scarcity in the last one week, had their woes compounded as available aircraft were further reduced by 50 per cent due to the closure of Arik.

While other airlines like Air Peace, First Nation, Med-View, Dana Air, Overland and Azman could not take the spillover from Arik due to low capacity, about 100 per cent hike in ticket fares was noticed by Tuesday afternoon.

At the General Aviation Terminal (GAT) and Murtala Muhammed Airport II terminal, both in Lagos, for instance, an economic class ticket to Abuja that on Monday sold for between N27,500 and N32,000 was yesterday offered for N54,000. The business class equivalent of the ticket was given at N75, 800 to N80,000.

At most of the counters, however, the same flights were declared “fully booked,” with a backlog of passengers waiting due to delays which airlines blamed on “operational reasons.”

The Guardian learnt that the situation was not any different at the major airport terminals in Abuja, Port Harcourt and Kano as passengers waited endlessly for flights to arrive from Lagos.

It would be recalled that Arik Air and labour unions had been at loggerheads over alleged non-observance of industrial rules in the organisation, with threats to ground the airline to force compliance.

As early as 6:00 a.m. yesterday, Arik Air workers and others in solidarity, embarked on strike, shutting operations nationwide to demand the payment of outstanding salaries and observance of labour laws bordering on the welfare of workers.

Read More:

http://guardian.ng/news/airfares-rise-by-100-per-cent-as-workers-shut-arik/

Arik Air is a disgrace, an embarrassment, and should be shut down. – By Olawale Atanda

Posted on by
36

Arik Air has to be the worst airline to come out of Nigeria in recent times. Their incompetence is on a whole different level and it appears they are either oblivious to it or they just do not care. For a company that prides itself as Nigeria’s biggest airline and the ‘Wings of Nigeria’, they ought to do better, way better.

Tales of mismanagement have constantly trailed Arik Air as far back as 2011. The mismanagement has been accused of being unable to service their debts, of not remitting monies deducted from staff accounts for the mandatory pension fund scheme and failing to pay the Personal Income Tax deducted from staff salaries to the appropriate tax authorities, amongst others.

It was no surprise when, on Monday December 19, the chickens came home to roost. Aviation workers unions under the aegis of the National Union of Air Transport Employees (NUATE), Air Transport Senior Staff Services Association of Nigeria (ATSSSAN) and the National Association of Aircraft Pilots and Engineers (NAAPE) announced that Arik Air workers will go on an indefinite strike the following day, Tuesday, to protest the non-payment of their salaries for 7 months and other anti-labour practices, some of which have been mentioned above. They announced that the strike would not be called off until their demands are met.

Arik Air not only has a responsibility of care to their workers but also to their passengers. However, the treatment passengers get is just as bad as what the staff get. Let us talk about the perennially delayed and cancelled flights passengers of Arik Air have to face every time they fly the airline. Arik essentially cancels or reschedules more flights than not.

In April this year, the Nigerian Civil Aviation Authority revealed that domestic airlines operating in the country recorded 8,478 cases of delayed flights in the first quarter of 2016. Out of these, Arik Air topped the list with a staggering 2,801 and 99 delayed and cancelled flights respectively out of 4,926 flights operated by them. This means that just 43% of their flights in the first quarter of 2016 were not delayed or cancelled. This is unacceptable.

Tales of delays and cancellations by aggrieved passengers are seen almost daily on social media. Tales of Arik delaying or cancelling flights without warning and without any form of compensation whatsoever. This is regardless of the fact that Arik is mandated by virtue of Part 19 of the NCAA Consumer Protection Regulations to compensate passengers for delayed flights by refunding up to 25% of the flight ticket cost, providing refreshments and even providing hotel accommodations if the flights are delayed overnight. However, passengers have had to sleep over at boarding lounges, pay for their refreshments and basically bear the cost of the delayed or cancelled flights by themselves.

Arik Air constantly gives the lame excuse that they delay flights because of the inability to get jet fuel. This excuse falls flat on its face on the fact that Arik is not the only airline to fly within Nigeria. No other airline gives passengers headaches more than Arik Air. There have also been reports that Arik has been unable to pay their aviation fuel suppliers which caused most of their flight cancellations. There really is a difference between the lack of availability of fuel and the inability to pay for fuel, Arik Air.

Even after Arik Air’s operation have been grounded due to the strike embarked on by its workers, it is still accepting bookings on their flights. If this is not madness, we do not know what it is. Arik Air must have been aware that their workers would go on strike as late as Monday the 19th of December, but they still sold tickets for flights that would not take off the following day and beyond. This is insensitive, misleading and plain wrong.

Arik Air is everything that is wrong with the airline industry in Nigeria. It is apparent that there needs to be an overhaul of its management and operation practices. If they can no longer deliver timely and quality services, and it has shown that it cannot for so long now, then it should shut down.

BREAKING: Protesting workers shut down Nigeria’s largest airline, Arik

Posted on by
31

Staff of Nigeria’s largest airline, Arik, have shut down its operations in Lagos.

 

The staff are currently staging a protest at the domestic terminal of the Murtala Muhammed airport.

 

The protesters displayed placards containing messages communicating their grievances.

 

Others danced to anti-establishment songs by the late Afrobeat musician, Fela Kuti.

 

“We want them to pay us our salaries. They are owing us for seven months,” one of the protesters said.

 

Details later?…

Arik to face Consumer Protection Council over alleged shoddy treatment of passengers

Posted on by
Reply

The Consumer Protection Council, CPC, has summoned the management of Arik Airline to appear before it.

The summon followed complaints of alleged ill-treatment by passengers of a recent London-Abuja Arik flight. It is to allow the management of the airline provide facts relating to the allegations, the CPC said in a statement on Wednesday.

It would be recalled that Arik Air and no fewer than 40 aggrieved passengers have been at loggerheads over the non-arrival of their baggage, five days after their flight landed in Nigeria.

According to the News Agency of Nigeria, NAN, the aggrieved passengers on Tuesday disrupted the airline’s operations and also allegedly damaged its check-in counter at the Murtala Muhammed International Airport, Lagos.

Consequently, the Nigerian Civil Aviation Authority, NCAA, on Wednesday directed Arik Air to return all delayed baggage of the passengers within 24 hours and compensate the affected passengers with $150 each for their troubles.

In his reaction, the airline’s Associate Vice President, Ground Operations Department, Femi Kukoyi, apologised to the passengers.

While assuring them that an aircraft was en-route Lagos from London and would arrive with about 300 bags by 7 p.m., Mr. Kukoyi said that the remaining would be brought in by another of its aircraft by 5 a.m. on Thursday.

In its Wednesday statement, the Consumer Protection Council disclosed that those summoned to appear before it on December 19 are the airline’s Chief Executive Officer, Michael Ikhide; the Chief Operating Officer, Conor Prendergast; and the Managing Director, Chris Ndulue.

“The said passengers, many of whom had connecting flights to Cameroon, Abuja, Port Harcourt and Ibadan could not continue their journeys as a result of the non-arrival of their luggage from London, while some passengers on the said flights could not have access to personal supplies, baby food or medication,” the statement said.

It added that “Arik Air Ltd did not provide the passengers with temporary accommodation for transit; neither was there any customer service desk to assist the passengers in resolving their individual complaints.”

The council however disclosed that it had issued the summons in line with Sections 8, 15 and 18 of its enabling Act.

It would be recalled that on December 25 and 31, 2015 as well as January 9, 2016, Turkish Airlines had similar experience with its Flight 623 from Istanbul to Abuja. It, however, refused to respond to the Council’s summons and the ultimatum of the Attorney General of the Federation, leading to criminal prosecution of the airline and two of its principal officers for alleged criminal violation of the Consumer Protection Council (CPC) Act.

The Turkish Air prosecution has been fixed for February 9, 2017 for hearing.

Nigeria authority orders Arik Air to pay compensation to passengers

Posted on by
15

The Nigerian Civil Aviation Authority (NCAA) on Wednesday directed Arik Air to return all delayed baggage of its passengers from London to Lagos within the next 24 hours.

The authority also directed the airline to compensate the affected passengers with $150 each for their troubles.

The News Agency of Nigeria, NAN, reports that the directive was issued by Adamu Abdullahi, Director, Consumer Complaints Department, NCAA.

Arik Air and no fewer than 40 passengers have been at loggerheads over the non-arrival of their baggage, five days after their flight landed in Nigeria.

The aggrieved passengers had on Tuesday disrupted the airline’s operations and also allegedly damaged its check-in counter at the Murtala Muhammed International Airport, Lagos.

Addressing the passengers, Mr. Abdullahi appealed to them to remain calm as both Arik Air and the aviation authorities were working towards resolving the issue.

“NCAA has directed Arik Air to pay each and every passenger a compensation of $150 each in line with civil aviation rules and regulations in Nigeria.

“We have sent the letter to the airline and it also contains a directive that every bag must be here within the next 24 hours.

“A directive is a directive and we will hold Arik Air management responsible, and I can assure you that they will abide by the directive, “he said.

Mr. Abdullahi advised them against taking the laws into their own hands, stressing that there are laid down procedures to be followed in resolving such issues.

Also speaking, Saleh Dunoma, Managing Director, Federal Airports Authority of Nigeria, FAAN, urged those who needed medical attention to visit the FAAN clinic within the airport.

Mr. said the doctors had been directed to issue prescription drugs to passengers whose medications had yet to arrive the country due to the delay.

Speaking on behalf of the airline, its Associate Vice President, Ground Operations Department, Femi Kukoyi, apologised to the passengers for the inconvenience caused by the incident.

Mr. Kukoyi said the airline had to charter an aircraft which brought some of the baggage to Lagos on Wednesday morning because the passengers prevented it from operating its A330 aircraft on Tuesday.

He assured them that an aircraft was en-route Lagos from London and would arrive with about 300 bags by 7 p.m. while the remaining would be brought in by another of its aircraft by 5 a.m. on Thursday.

On the issue of compensation, he said Arik Air would attend to them on an individual basis and expressed optimism that everything would be resolved amicably.

Two of the passengers who spoke to NAN, Ifeanyi Uchendu and Johnson Agwu, berated the airline for the shabby treatment of the passengers.

According to them, the airline had earlier promised them that their bags would arrive latest on Tuesday and also they would receive compensation of N50,000. but failed to keep to its words.

NCAA investigating death of stowaway on Arik flight.

Posted on by
1

The Nigeria Civil Aviation Authority says it has initiated investigation to determine the identity of the dead stowaway found in South Africa on an Arik Air flight.

Sam Adurogboye, the General Manager, Public Affairs, NCAA, told the News Agency of Nigeria on Thursday that the authority would take necessary action after the investigations were concluded.

Adurogboye said the investigation was with the collaboration of Arik Air and the South African Authorities.

Adurogboye said: “The matter is still being investigated and decision will be taken after.

“The investigation is being carried out by NCAA through the active involvement of the airline itself and with the authorities in South Africa.”

Also, the Acting General Manager, Public Affairs of FAAN, Henrietta Yakubu, said the authorities were yet to establish the identity of the stowaway.

Yakubu explained that information available to the authority suggested that the said body was already decomposed.

According to her, it was possible that a body could decompose in a six hour flight.

Yakubu said: “Whatever the case, there is an investigation going on and that is why we cannot pre-empt the outcome.

“We have asked Arik to investigate to be able to determine where the stowaway boarded the flight from.

“It has not been established whether the deceased is a Nigerian or not until the investigation is over and the facts are determined.”

Arik’s Communication Manager, Ola Adebanji, said the airline had no further information on the dead stowaway until it concluded investigation.

The lifeless body of a stowaway was discovered on Wednesday in the main wheel well of Arik’s A330-200 aircraft at the Oliver Tambo International Airport, Johannesburg, South Africa.

The airline had in a statement on Wednesday confirmed that the aircraft departed the Murtala Muhammed International Airport, Lagos at 3.55pm on Tuesday and arrived at Johannesburg shortly before 11pm.

It said the engineers of South African Airways Technical facility at the airport, where the aircraft was scheduled for a routine maintenance check, discovered the body of the stowaway during the inspection phase.

The airline said investigations were ongoing to determine how the stowaway found his way into the aircraft main wheel well.

It could be recalled that since 2013 till date, no fewer than four cases of stowaways were recorded in the nation’s airports.

Man found dead on Arik Air plane in Johannesburg

Posted on by
21

The lifeless body of a stowaway was on Wednesday found in the main wheel well of one of Arik Air’s A330-200 aircraft at the Oliver Tambo International Airport, Johannesburg.

 

The airline confirmed the incident in a statement by its Communications Manager, Ola Adebanji, a copy of which was obtained by the News Agency of Nigeria in Lagos.

 

According to the airline, the aircraft operated the scheduled Lagos-Johannesburg flight that departed the Murtala Muhammed International Airport at 3:55 p.m. on Tuesday and arrived in Johannesburg shortly before 11 p.m.

 

It said engineers of South African Airways Technical facility at the Oliver Tambo International Airport, where the aircraft was scheduled for a routine maintenance check, discovered the body of the stowaway during the inspection phase.

 

The airline said investigations were ongoing to determine how the stowaway found his way into the aircraft’s main wheel well.

Arik resolves aircraft insurance renewal issue, resume operations.

Posted on by
2

The operation of Arik Air was on Tuesday disrupted due to aircraft insurance renewal, leaving its passengers stranded across airports in the country.

However, the airline moved quickly to resolve the issue.

This led late on Tuesday to the announcement of restoration of the airline’s operations beginning from Wednesday (today).

All the airlines scheduled flights were cancelled on Tuesday over the issue, prompting its customers to seek alternative flights.

The Communications Manager of the airline, Ola Adebanji, said the disruption was temporary, pending approval of aircraft documentation related to insurance renewal.

Adebanji noted that Arik airline was working round the clock to resolve the necessary documentation.

According to him, all flights scheduled for September 13 have been cancelled.

He added that the airline would get in touch with passengers to provide an update on rescheduling of their flights.

He said: “This situation is likely to continue for the next few days until such time that the National Insurance Commission approves a waiver on a priority basis for the new insurance company to renew the policy.

“All customers are advised to contact Arik Air’s Call Centre (01-2799999), Airport or City ticket offices or visit the airline’s Website (www.arikair.com) for further updates.

“Where flights have been cancelled, the airline will notify passengers through text messages and in such cases passengers will be accommodated on first available alternative flight as soon as normal flight operations resume.”

Adebanji gave an assurance to members of the public that the airline was fully committed to returning to its normal operations and apologised for the inconvenience caused its passengers.

Passengers were also advised to check with the airline regarding the status of their flights before proceeding to the airport, a statement by the airline added.

Adebanji said: “Arik Air’s Group CEO, Dr. Michael Arumemi-Ikhide, wishes to advise and assure the public, its customers, stakeholders and partners that we are fully committed to returning to our normal operations and minimize any unfortunate inconvenience to our passengers.

“The Group CEO has apologised and appealed (on behalf of the airline) for the understanding of passengers while it works diligently to resume normal operations at the earliest.”

Arik Airline is the third airline to suspend operations.

Debt plagued Aero Contractors announced suspension of services first, followed by First Nation Airline.

The latter however promised to resume operations on September 14.

Union Stops Arik Passengers From Entering Abuja Airport Hall

Posted on by
Reply

Over 200 passengers of Arik Air were stopped from entering the departure hall of the Nnamdi Azikiwe International Airport, Abuja on Wednesday by angry aviation union members.

The passengers were directed to converge at the crowded ticketing counter of the airline despite passionate pleas by some of the travellers to the unionists.

Some of the angry union members stationed themselves at the way leading to the departure hall for outbound passengers, they checked the tickets of travellers who made their way to the departure hall and those with Arik Air tickets were turned back.

Our correspondent gathered that the union members arrived at the airport early and commenced the exercise of denying Arik Air passengers entry to the departure hall as early as 6.30am on Wednesday.

The situation dragged for several hours, a developmnt that forced the carrier to suspend its flight services on Wednesday.

Most of the affected passengers felt dejected as many of them were seen trying to catch another flight with a different airline, while others left.

“This is painful and I feel dejected already. Must we suffer this much in Nigeria? Can’t unions and businesses in their sphere of operations settle amicably without putting innocent citizens through untold hardship for once in this country? This is sad!,’ were the words of an affected traveller who simply gave his name as Greg.

The unions, it was gathered, were demanding that the airline should clear its about N12.5bn debt owed the Federal Airports Authority of Nigeria.

Similarly, the union members also stopped the carrier from carrying out its operations at the General Aviation Terminal of the Murtala Muhammed Airport, Lagos.

This was confirmed by the airline’s spokesperson, Mr. Banji Ola, who stated that the FAAN workers’ union on Wednesday morning blocked the operations of Arik Air at the GAT, Lagos.

Credit: Sun

We hid cocaine in Arik flight meals – Attendant’s accomplice

Posted on by
343

The National Drug Law Enforcement Agency on Thursday said it had apprehended another employee of Arik Air, Ikechukwu Chibuzor Oliver, for his alleged involvement in the smuggling of 20kg cocaine to London on Monday.

According to the NDLEA, Oliver had confessed to the crime and had revealed that he charged N400,000 for each of the three bags containing the substance.

Oliver, Arik Air’s employee in the catering department, was said to have assisted Chika Egwu Udensi to get the cocaine onboard the London-bound Flight W3101 on which Udensi arrived in the UK on Monday night.

Udensi, a senior flight attendant with the airline was arrested with the substance by the UK Border Force at the Heathrow Airport, London, shortly after the Airbus A330 landed.

The NDLEA, in a statement, said 35 years old Oliver, who is a catering loader at Arik, was found to have subverted airport security by concealing cocaine in catering supplies.

The statement by the anti-narcotics agency’s spokesman, Mitchell Ofoyeju, indicated that preliminary investigation had revealed that both Oliver and Udensi had been infiltrated by a suspected drug cartel.

Ofoyeju said Oliver had told narcotic investigators that he was brought into the illicit drug deal by Udensi.

The NDLEA’s statement quoted Oliver to have said, “It was Chika that introduced me into the drug deal. Whenever Chika gives me the drug, I will hide it in catering supplies. Chika knows where to collect the drug inside the flight. They pay me N400,000 per bag. I was expecting N1.2m for the three bags that I smuggled into the aircraft.”

The statement added,“The 20kg of cocaine found with Chika in London was concealed within the construction of laptop bags. The quantity and estimated street value of the cocaine is over N100m.

“The latest Range Rover (Land Rover) car belonging to the prime suspect parked on the airline’s premises had been moved to the NDLEA office as exhibit.

“As part of investigation, the rented apartment of Chika on Pastor Ojediran Street Ejigbo, Lagos was searched by operatives of the NDLEA. He lives there with the mother and siblings while his wife and children are based in Canada.”

Oliver hails from the Isialagwa North Local Government Area of Abia State. The graduate of Business Administration was employed by Arik Air in 2009.

Meanwhile, the NDLEA Chairman/Chief Executive Officer, Ahmadu Giade, has directed that, henceforth, all airport workers must be extensively screened.

Giade said, “The agency has taken drastic measures to avert infiltration of airport workers by criminal syndicates. Airline officials and airport workers shall be subjected to comprehensive search. The NDLEA will resist any act capable of undermining security at all entry and exit points.”

The NDLEA boss stressed that all catering trucks, luggage trucks, aviation fuel tankers, machines and personnel whose duty directly or indirectly related to the tarmac and flight operations would be subjected to full screening.

Following Udensi’s arrest, operatives of the agency had on Wednesday besieged and occupied his Lagos house. The NDLEA stormed the house after they had interrogated pilots and flight attendants in the flight that left the Murtala Muhammed International Airport, Lagos.

–Punch

Arik Crew Member Arrested In London For Drugs Possession

Posted on by
389

Arik Air, has confirmed that a member of its cabin crew was on Monday night arrested at Heathrow Airport, London by the UK Border Force in connection with alleged possession of items suspected to be banned substances.

The airline, which did not give the name of its crew member, said it was presently carrying out its own investigation to determine how the cabin crew member came about the suspected banned substance.

“Arik Air will also be cooperating fully with the UK authorities and other appropriate agencies in their investigations. The airline again reaffirms its commitment to the fight against drug and illicit substance trafficking and will not tolerate the use of any of its aircraft or crew for the courier of banned items and substances,” the spokesman of the airline, Adebanji Ola, said in a statement.

Read More: thisdaylive

Merge Indebted Arik, Aero, Others To Form National Carrier; Joda Committee Tells Buhari

Posted on by
Reply

The Buhari administration may be considering merging all debtor airlines in the country into a national carrier, capable of serving the West and Central African regions, with Nigeria as the regional aviation hub.

That is part of the recommendations by the Ahmed Joda transition committee, which submitted its report to President Muhammadu Buhari about two weeks ago.

Six of Nigeria’s leading domestic airlines are currently bogged down by huge debts totalling almost N130 billion, forcing them to turn to the Asset Management Corporation of Nigeria (AMCON) for a lifeline.

Read More: premiumtimesng

Chidoka Advocates Private Sector-driven National Carrier

Posted on by
1

The Minister of Aviation, Mr Osita Chidoka on Friday said a private sector-driven national carrier would be the best way forward for Nigeria.
Chidoka stated this when he spoke with newsmen during the official inauguration of the Pilot and International Protocol Lounge at the Nnamdi Azikiwe International Airport, Abuja.

He said that he would share the idea with the major players in the industry, adding that the country needed flag carriers because of its strong domestic market.
“One of the things we are proposing is that Nigeria does indeed need flag carriers so to say because we are a country that has strong domestic market and have local airlines operating.
“We believe that national carrier that is private sector- driven will be the way to go for Nigeria and we are looking forward to that,’’ he said.
Chidoka said that the Federal Government was determined to end discrimination against Nigerian pilots by making sure that every airline operating in the country had at least a Nigerian pilot.
He said that the measure, which would take effect from June 1, would encourage Nigerian pilots and give them flight experience.
The minister said that the ministry had been working with the Ministry of Interior to ensure that before any airline could bring in foreign pilot, it must have employed a Nigerian pilot.

“Before any quota permission is given for a foreign pilot, the Ministry of Aviation must be contacted by the Ministry of Interior to give a no-objection.
“This is to be sure that such airline has fulfilled the obligation of employing a Nigerian pilot and also has a training plan to keep training Nigerian pilots.
“With that in place, we will then agree for them to bring in foreign pilots,’’ he said.
Chidoka said that all the projects initiated under the current administration were on course, adding that those yet to be completed would be completed by the incoming administration.
He said that the projects in the aviation sector were projects that would enhance the future of the industry, adding that anybody that had the interest of Nigeria would complete them.
“The completion time is still about 18 months away and I believe that the incoming government would put everything in process to complete them,’’ he said. (NAN)

Arik Settles N4 Billion Debt To FAAN

Posted on by
Reply

Arik Air paid over N4 billion to the Federal Airports Authority of Nigeria for landing , parking fees, rent,

passenger service charge (PSC), and fuel surcharge last year.

The payments, it was gathered were made for the months of January, February, March , April, June , July, September and December last year.

The 4 bllion naira debt is contrary to claims by sources close to FAAN, which claimed that the carrier had not been paying its bills since it began operations eight years ago.

Investigations revealed that Arik Air in January last year paid N335,562,212.50; N318,575,022.50 in February and N327,359,180 in March.

In April, it paid N370,417,622.50 while in June same year , it paid N349,471,655. In July, the airline paid N315,530,737.50.

In September and December , it paid N344,486,305 and N477,232,605.50 respectively to the Federal government.

“ The total amount paid to FAAN in 2014 was N3,941,023,995. This is contrary to claims that the airline has not been paying its bills,”a source close to the carrier said on condition of anonymity.

FAAN according to investigations said the airline owes about N287,834,450.47 and $8,192.00 for its Abuja operations .

FAAN, in a letter endorsed by its Regional Manager, Abuja Airport Engineer O.O Osituyo to the Arik Arik Station Manager, Abuja put the debt accruing on the electronic platform hitherto operated by Maevis Limited at N470,338,773,68 and $1,748.90 respectively.

FAAN said the debts covered landing and parking fees, passenger service charge , rent , service recovery charge for operations at Abuja Airport.

Last week, officials of FAAN disrupted Arik Air’s operations at the Nnamdi Azikiwe International Airport, Abuja.

Credit – www.nigerianewsday.com

Arik Air Workers Arrested For Stealing Aircraft Fuel

Posted on by
1

The Aviation Minister, Osita Chidoka, on Monday said the ministry has arrested three Arik Air staff for stealing fuel from an aircraft.

Mr. Chidoka said on his official Facebook page that the trio of Blessing Dugbe, Samuel Asuquo and Isaac Ajakaiye were arrested at the Murtala Mohammed International Airport, Lagos, during a security patrol operation on Sunday at about around 3 a.m.

Mr. Chidoka said the trio were stealing Jet A1 fuel from Arik Air plane, with registration number: 5N-MID into six jerry cans for sales at cheaper price to other unsuspecting airline operators.

“A development that has capacity, to threaten safety and security of airplanes. Meanwhile, the three (3) suspects were handed over to the Crime Investigation Bureau (CIB), AVSEC MMIA for further action,” Mr. Chidoka said.

He said in the aviation industry’s fight against corruption and security breaches, other chief security officers and heads of aviation security have been alerted and directed to intensify patrol and surveillance operations at various
airports across Nigeria.

He said considering the magnitude of the crime to the security and safety of airplanes, the chief security officer of the Lagos airport has been asked to ensure that the suspects are handed over to the airport police for adequate prosecution.

This is not the first time that Arik staff are accused of theft. Passengers have often lamented the loss of one item or the other aboard the airline’s flights.

In an exclusive report by this newspaper in June 2014, some passengers lamented how they lost items ranging from iPad, jewelleries, clothes to perfumes.

A passenger interviewed for that report complained that the lock on her luggage was broken aboard a flight to Johannesburg, South Africa.

The airline is yet to officially comment on the latest incident.

Source – Premium times