Plans For National Airline Carrier Sees Arik and Aero Airlines Possibly Merging - FG

The Federal government may have decided to merge Arik and Aero in order to create the new national carrier.

Here is what we know about the proposal:

•  Six firms including Lufthansa are currently advising the government on the various options.
• The government is also looking at various models to concession the airports.
•  Some analysts are of the opinion that government should merge all airlines indebted to it majorly Arik and Aero.
•  They argue that Amcon has been unable to turn the airlines around, despite pumping billions into them.
• Another set of analysts believe the government should start afresh.

Amcon took over Arik air in February 2017 and has estimated the airline’s debt at over N375 billion comprising domestic and foreign investors. Since then, the bad bank has injected over N1.5 billion into the airline. There have been several allegations of Amcon cannibalizing Arik aircraft parts to put in Aerocontractors .

Amcon had in February 2016 taken over Aerocontractors. The airline which prides itself as one of the oldest in the country was founded by Schreiner Airways BV of the Netherlands in 1960. The Ibru family later bought a stake in the company and became the full owners in 2010. The airline’s indebtedness to Amcon and other bodies is estimated at over N20 billion.