In a move that may be in response to the many months of clamour by labour and other Nigerians, the Asset Management Company of Nigeria (AMCON) has finally taken full ownership of Nigeria’s foremost airline, Aero Contractors.
AMCON absorbed the toxic assets of the company when it was headed down due to over bloated debts it owned the defunct Oceanic Bank.
Ecobank, which bought over the then Oceanic Bank Plc, offloaded the debts to AMCON that has now invested about N20 billion of public fund in the airline.
In 2010 when AMCON took over the company it invested about N14 billion and owned 60 per cent of the stakes. Now it owns the company 100 per cent as a creditor and manager.
Informed source told THISDAY that the reason why AMCON took over the airline was for the public interest and to safe Aero, a highly promising carrier, from collapsing.
“AMCON decided to take over the company to sustain and maintain the brand heritage, excellent safety record of over 60 years and its well-known excellent customer service. Secondly, to sustain the airline to make sure it continues to provide air transport service for nation’s economic development,” the source said.
The source also explained that AMCON has to take over to protect the investment and interest of shareholders; to ensure the airline continues to fly without compromising safety standards and to continue to provide outstanding customer service to travellers.
THISDAY learnt that in taking over the company, AMCON has also dissolved the board the company and in a statement said, “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 is both the majority shareholder and creditor of Aero.
“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.
“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.”
The government agency said it has also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last five years.
Since late last year the Air Transport Service Senior Staff Association (ATSSSAN) and the National Union of Air Transport Employees (NUATE) have drawn the attention of government and interested public over the dwindling fortunes of Aero, which few years back was the best domestic airline in Nigeria.
Industry observers commend the action taken by AMCON; many said such action should have been taken earlier.
Aero Contractors is Nigeria’s oldest aviation company, which commenced business in 1959, initially providing services to oil and gas sector, before venturing into fixed wing operations in the year 2000. Before the complete take over, the Asset AMCON owned 60 per cent of the company with the remaining 40 per cent held by the Ibru family.
