Tag Archives: aero contractors

Ailing Aero Contractors sacks 60 per cent of workforce

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Aero Contractors Airline, which is under the management of the Asset Management Corporation of Nigeria (AMCON), has sacked 60 per cent of its workforce.

The News Agency of Nigeria (NAN) reports that letters of redundancy were issued to the affected employees during the week.

Media Consultant to the airline, Mr Simon Tumba, who confirmed the development in a statement issued on Thursday in Lagos, said the workers would be paid their pension and gratuity.

Tumba said the airline had been grappling with huge and unrealistic personnel cost as well as other operational challenges worsened by lack of enough aircraft to keep all the workers meaningfully engaged.

“The issuance of notification of redundancy is a business decision that will ensure Aero’s survival.

“The current situation where over a thousand people are basically not engaged due to lack of serviceable aircraft is not sustainable for the airline.

“The huge monthly salary associated with a bloated workforce will eventually kill the airline, which is not the intention of the current government,” he said.

According to him, Aero Contractors currently has aircraft-to-employee ratio of 1:500, which analysts believe is perhaps the worse in the history of global airline industry.

Tumba said government’s intervention in Aero was to save it from total collapse therefore, all steps such as this (issuance of redundancy letters) to ensure its survival must be put into consideration to save the airline.

He said :”This decision will immediately reduce the whooping operational cost, which has been stifling Aero; enable the management bring in more aircraft through savings from overheads and pay for C-checks.

“It will also enable Aero have a more manageable and committed workforce in line with international best practices of 50 to 60 personnel to one aircraft unlike what obtains in Aero at the moment.”

He, however, added that those in Maintenance Repair and Overhaul (MRO) and other essential staff in critical departments would not be affected.

Tumba said Capt. Ado Sanusi, the Chief Executive Officer of Aero, had also assured the workers that they stand a chance of being recalled as soon as the airline increases the number of aircraft in its fleet in the near future.

A part of the redundancy letter made available to NAN read:, “Following the operational challenges of Aero culminating in loss of business opportunities that adversely affected company finances vis-à-vis operations, we are constrained to place you under redundancy pending a possible future review.

“This decision was communicated to the unions where their understanding was solicited in view of prevailing operational difficulties.

“Whilst Aero appreciates your contribution to the company and continues to regard you as worthy ambassadors, we solicit your understanding as we struggle to stabilise operations and rebuild the company.”

However, the National Union of Air Transport Employees (NUATE) and the Air Transport Senior Staff Services Association of Nigeria (ATSSSAN) , have kicked against the move by the airline.

Mr Frances Akinjole, General Secretary, ATSSSAN, told NAN that a notification had been sent by the unions to the affected workers not to accept the “purported letter of redundancy “.

“We are totally against it because in the first place, our members are still being owed salaries and we have not even negotiated the redundancy package.

“If they go ahead with this move then the unions are prepared to face them headlong,” he said.

(NAN)

Nigerian Airline Aero Contractors Fails To Recommence Flight Operations

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Aero Contractors, the troubled local Nigeria airline which was widely expected to return to the skies on Thursday, has yet to do so.

Our correspondent who visited the operational bases of the airline at the Murtala Muhammed Airport Two (MMA2) and the General Aviation Terminal (GAT), at the same airport, found that although the counter staff of the airline were at their duty posts, the airline was not selling tickets to interested travelers or flying anywhere.

A source close to the airline told our correspondent that the management was awaiting some papers and approvals from the Nigerian Civil Aviation Authority (NCAA) before flight operations can recommence.

Confirming that situation, NCAA spokesman Sam Adurogboye stressed that before the airline can fly again, it must obtain the approval of the regulatory agency, and that the agency needed to recertify the airline before it can resume operations.

In addition, Adurogboye said, NCAA’s inspectors would still check the aircraft to be used for flight operations to ensure they are airworthy, and maintenance base also certified for operations.

“We are still on it,” he said.  “When we are through, they would be released for operations.”

It would be recalled that Aero had in a statement yesterday assured the travelling public that it would resume flight operations today.

The airline had suspended flight operations on August 31 after a series of crises in the airline.

The statement hinted that the airline decided to suspend flight operations because of a strategic business realignment to reposition it and make it profitable again.

The statement specifically explained that the airline would re-launch scheduled services to Lagos, Abuja, Warri and Port Harcourt, using its Boeing 737-400/500 and the Dash8-Q400, with the expectation that as more aircraft return to service, more routes will be reopened.

It is unclear why Aero management made yesterday’s announcement when it had yet to fulfill the industry’s regulatory requirements.

BREAKING: Finally, Aero Contractors ready to fly again.

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Aero Contractors Airlines will resume flights this week after shutting down for nearly nearly four months, TheCable understands.

The airline, which used to be industry leader before entering economic turbulence, suspended operations “indefinitely” from September 1, 2016.

But insiders told TheCable that the airline will resume operations “most likely on Wednesday” after securing new investors and getting a breather.

“If things work according to plan, the staff will be recalled and addressed on Monday, IT staff will resume on Tuesday and flight operations will commence on Wednesday,” the source said.

Aero will restart by flying only three routes: Abuja, Lagos and Port Harcourt.

This will come as a relief to Nigerian travellers who have had their options limited since the aviation industry went into a tailspin following financial and fuel crises.

TheCable could not confirm if the airline got foreign investors to re-start operations.

When Aero suspended operations, its CEO, Fola Akinkuotu, had said it was pursuing a “strategic business realignment” to reposition the airline and return it to the path of profitability.

“This business decision is as a result of the current economic situation in the country, which has forced some other airlines to suspend operation or outrightly pull out of Nigeria,” he said.

“In the case of Aero, the airline has faced grave challenges in the past six months, which impacted its business and by extension the scheduled services operations.

“This suspension is 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 staff 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.’

Hundreds of its employees staged a peaceful protest after the suspension of operations which they blamed on the Asset Management Company of Nigeria (AMCON), the “bad bank” set up by the central bank to buy the debts of heavily indebted companies.

NAN reported that the protest was organised by the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and National Union of Air Transport Employees (NUATE).

The workers marched round the Murtala Muhammed Airport, Lagos, carrying various placards expressing their grievances.

The placards had inscriptions such as, ‘Don’t Allow Aero to Die,’ ‘Save Aero from AMCON’ and ‘Aero must not go the way of Nigeria Airways,’ among others.

Speaking on behalf of the protesters, Frances Akinjole, the Secretary, ATSSSAN, condemned the ‘illegal closure’ of Aero Contractors by AMCON, adding that they would resist the plan to liquidate the company.

Akinjole accused AMCON of running the airline aground after it took over majority shares in 2011 by approving bogus salaries and allowances for its representatives.

“Before AMCON took over, the airline had 11 operational aeroplane. They claim to have injected N12 billion in the company, but today, the airline has only three aircraft,” she said.

“This is calling on all well-meaning Nigerians to please come to the aid of Aero at this crucial time in her life.

“Aero should not be allowed to die from the strangle of AMCON.”

AMCON Takes Over Aero Contractors

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In furtherance of the statutory responsibility of acquiring Eligible Bank Assets and putting them to economic use in a profitable manner, the Asset Management Company of Nigeria (AMCON) has dissolved the Board of Aero Contractors and appointed a Manager over the affairs of the airline.

AMCON announced today in a press statement. AMCON is both the majority shareholder and creditor of Aero.

It said an industry based management team will be put in place to provide the highest level of professional competence which would ensure a quick repositioning of the company.

“The management of AMCON decided to make changes in the Management of the airline to protect the brand heritage of the airline, a very well cherished value. AMCON also maintains that its intervention is in the public interest to sustain and improve the robust and premium quality service which Aero is known for in the country” the statement noted.

“AMCON would like to assure the regulatory authorities, the traveling public and key stakeholders that the airline will continue to operate on the solid foundation of safety and security with excellent customer service” it said.

It further noted that, AMCON has also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last 5 years.

Credit: dailytrust

Aero Contractors Gets Costly Sanction For Ladder Saga

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Days after a Nigerian airliner, Aero Contractors Airlines, disembarked passengers from a plane with a ladder in Bauchi State, the Nigerian Civil Aviation Authority (NCAA) imposed an “applicable sanction” on the airliner in line with Nigerian Civil Aviation Regulations (NCARs).

According to the NCAA, the sanction runs into millions of Naira.

A spokesman for the NCAA, Mr Sam Adurogboye, gave a hint about the sanction in a statement on Wednesday.

Credit: ChannelsTv

Wanted Boko Haram Terrorist Apprehended On Aero Contractors Flight In Abuja

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Press statement from the Nigerian Army:

The declaration of 100 suspected Boko Haram terrorists has started to pay the desired dividend as one of them was arrested as he attempted to flee. Today(Yesterday November 8th) at Nnamdi Azikwe International Airport, Abuja, a man suspected to be one of the declared wanted suspected Boko Haram terrorists, Chindo Bello was apprehended by Aviation Security as he was boarding Aero Contractors’ Airline flight to Lagos.

The suspect has since been handed over to the military intelligence for interrogation and prosecution. We would like to thank those eagle eyed and patriotic security agents and good citizens for the tip off that led to the arrest of the suspect.

The Nigerian Army would like to reiterate the need for all well meaning Nigerians and those residing in our great country to be more vigilant and assist security agencies with information about the declared wanted terrorists, their sponsors and other criminals in our midst. Colonel Sani Kukasheka Usman Acting Director Army Public Relations

Chidoka Advocates Private Sector-driven National Carrier

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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)