Arik Air:

The Federal Government of Nigeria, through the Asset Management Corporation of Nigeria, AMCON on Thursday took over struggling biggest domestic carrier, Arik airlines in a move it said was to avoid “job losses, protect investors and stakeholder funds.”

While announcing the takeover of the airline, the Asset Management Corporation of Nigeria (AMCON) said the decision to intervene “clearly underscores the government’s commitment to instill sanity in the country’s aviation sector to prevent a major catastrophe”.

Roy Ilegbodu, has been named by AMCON to take over the management of the airline under the receivership of Oluseye Opasanya, a senior advocate of Nigeria.

AMCON said with the takeover, Arik which has come under criticisms over delay of its flights can now go back to regular and undisrupted operations.

“From all indications, respite may have come the way of Arik Airlines currently immersed in heavy financial debt burden that is threatening to permanently ground the airline,” AMCON said in a statement.

“For some time now, the airline, which carries about 55% of the load in the country, has been going through difficult times that are attributable to its bad corporate governance, erratic operational challenges, inability to pay staff salaries and heavy debt burden among other issues, which led to the call for authorities in the country to intervened before Arik goes under like many before it.”