PHOTO: Arik Air

The Asset Management Corporation of Nigeria (AMCON) has reiterated that its intervention in the affairs of Arik Arik is just to get the airline back on its feet.

The body has refuted claims by some that the takeover was to turn the airline into a national carrier.

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This was contained in a statement yesterday.

AMCON stated that already the move is bearing fruit as the creditors of the firm have resumed extending credit facilities to the airline which would, in turn, allow for smooth services.

Investigations revealed virtually all of Arik’s trade creditors are being owed while its staff members have over four months salary arrears unpaid.

According to The Punch, the airline was indebted to the tune of over N300bn, with AMCON alone owed N135bn, while its obligations to aviation fuel suppliers, insurance firms, aircraft maintenance organisations, the Federal Government and the various aviation agencies, as well as food vendors made up the balance.

To further compound the airline’s issues, only 10 of the 28 aircraft in its fleet are in operation.

AMCON said the airline’s operations are continuing while the insurance cover, which would have expired today, has been sorted out.

The statement reads: “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.

“Previously the fuel suppliers had suspended credit facilities but the airline is working to ensure steady fuel supply, which had been the cause of the airline’s erratic operations.

“Flight schedule may therefore be realigned to match the 10 aircraft in the fleet while sorting out the myriad of problems confronting the airline.”