NCAA debunks AMCON’s claims on Arik Air

Nigerian Civil Aviation Authority ( NCAA), has dismissed the allegation of the Asset Management Corporation of Nigeria, AMCON that Arik Air operated without spare tyres and other important equipment necessary to facilitate safe operations.The general manger Public Relations of NCAA, Sam Adurogboye stated that the allegation of AMCON is baseless and untrue.
Adurogboye stressed that no airline can operate in the country without spare tyres and other important equipment.Premium Times had earlier reported that AMCON accused old management of Arik Air of operating without spare tyres and other important equipment necessary to facilitate operations.
Premium Times also quoted AMCON spokesperson, Jude Nwauzor of saying that until the airline was taken over by the asset management organisation in February, it operated without adequate equipment during a press conference in Lagos on Wednesday, April 12.
According to the online publication, Nwauzor stated that until the airline was taken over by the Corporation in February, it operated without adequate equipment.He was quoted to have also said the former management of Arik Airlines was basically gambling with the lives of millions of people that patronise the airline because it did not care about safety.According to him, critical operational arrangement such as simulator which would have ensured that Arik pilots undertook mandatory trainings as required to improve their efficiency were non-existent.
Nwauzor had earlier given the airline’s indebtedness as N387 billion.
He noted that there is no way the carrier could have remained in profitable business without the take over of the business by AMCON. He disclosed further that the airline was indebted to the tune of N375 billion naira in local debt, including foreign debt totalling 31 million euros and $6.5 million. Nwawuzor said AMCON has injected over N1.5 billion into Arik Air since it took over on February 8, 2017.
Meanwhile, AMCON in an affidavit deposed to at the Federal High Court in Lagos noted that the airline was indebted to many financial institutions, insurance companies , aviation agencies, aircraft lessors , and other creditors for services rendered without payment.The document stated that before the taken over of the airline two months ago by AMCON, there were no spares in the aircraft stores, a development that could have threatened the safety of its operations , save for the timely intervention of AMCON .It was gathered that the new management team is piqued by the unfolding rot still being uncover at Arik Airlines, which was recently taken over by the Federal Government under the auspices of Asset Management Corporation of Nigeria, AMCON.
The many infractions by the former owner of  Arik  Air include unprofessional practice, huge indebtedness, non-existent records, lack of corporate governance among other vices that bedeviled Arik when it was taken over by the government debt recovery agency.The AMCON documents noted that the airline had inadequate equipment to facilitate its operations, which is reflected by the insufficient laptops available at the airports to conduct basic checks.But ironically, the same AMCON seems to be operating Aero Contractors without spare parts.Just recently, AMCON was accused of cannibalizing Arik Air aircraft and using the parts to repair the fleet of Aero Contractors.
Sources from the airline disclosed that an engine of a Bombardier Dash 8, Q400 was taken away from Arik aircraft with registration, 5N-BKV and given to Aero to fix in the same aircraft type, which broke down recently in Kaduna.
According to a source involved in the transaction, it was a second engine of the aircraft that was removed in a lease agreement in which Aero would be paying Arik $25,000 a month until the engine was returned to Arik.
The airline source also alleged that besides the engine, other parts were removed from the aircraft to repair the Aero aircraft, adding that AMCON by taking such safety critical decision has forgotten that it took over the airline’s management does not mean that the airline belongs to the Corporation to take such action that could jeorpardise its safety standard.“The agreement term that Aero agrees to pay $25,000 a month for the engine is exploitative and against the interest of Arik because in other parts of the world when this lease arrangement is done the airline pays for the engine per hour and should also pay for maintenance reserve for the engine, which were not done in the so-called lease between Arik and Aero,” an inside Arik source said.The source also noted that the aircraft from which the part has been cannibalized may have been destroyed because it was not only that part that was taken from the aircraft.“You cannibalize Arik aircraft and give the parts to Aero. It is not only that engine that was taken away but other parts were taken away. The engine taken away is engine number two. Since AMCON took over Aero five years ago its debts has increased and its fleet depleted.  They talked about corporate governance but under that corporate governance Aero has not improved; rather its existence is being threatened.“When AMCON took over Arik, the airline had 15 serviceable aircraft which AMCON claimed were 10. Now, from that 10, Arik has four aircraft. The new management owes all fuel markers a total sum of N450 million.
So AMCON has started cannibalizing Arik Air aircraft who knows the next thing it wants to do. Their flights have decreased and there are still delays. From all these it has become obvious that AMCON cannot manage the airline,” the inside source said.
When contacted, a top official of Aero Contractors acknowledged the lease of Arik aircraft engine and said the action is legal and an international practice, which is known all over the world.The source also said that the airline could have leased the engine from any other airline in the world, but it decided to take that of Arik because the money being paid would remain in the country.‎