Breaking News:
BIODUN AKOMOLAFE
The much fear possible collapse of airlines in the aviation industry in Nigeria, began this morning when management of oldest domestic airline in Nigeria, Aero Contractors Airlines announced that it would suspend its scheduled services from tomorrow, Thursday September 1, 2016.
A statement from the Chief Executive Officer, Capt. Fola Akinkuotu said the development was part of the strategic business realignment to reposition the airline and return it to the part of profitability.
This decision, according to Akinkuotu was a result of the current economic situation in the country which has forced some other airlines to suspend operations or out rightly pull out of Nigeria.
Aero Contractors of Nigeria was formed in 1959 as a wholly owned by Schreiner Airways B.V of the Netherlands. It became a company with initially 40% Nigerian holding in 1973 and subsequently 60% in 1976.
The Company started in the early 1960′s as an air charter operator. From that humble beginning in the 1970′s, Aero went on to provide both rotary and fixed wing services to all the major oil, gas and related support companies working in Nigeria and Wes Africa sub-region.
Akinkuotu said the airline had faced grave challenges in the past six months which impacted its business and by extension the scheduled services operations. These factors, according to him are both internal and external environmental factors that have made it difficult for the foremost airline to continue its scheduled services.
He said during the period in review, Aero, which was hitherto revered for its safety, timeliness among other virtues witnessed epileptic operations and services to the external publics that are caused by non-alignment of fundamental issue of the business, which in some cases have been frustrating and embarrassing to all parties including staff, customers and indeed all stakeholders.
As part of its resolve to ensure the airline survived unlike most other carriers that experienced short life span in the country, Asset Management Company of Nigeria (AMCON) had appointed Mr. Adeniyi Adegbomire (SAN) as Receiver Manager on February 6, 2016, with the aim of turning the airline around.
Since AMCON’s intervention in Aero Contractors in 2011, it has provided support for the airline to meet working capital requirements and fleet expansion. These were to ensure the airline remains a going concern providing services to various clients and the general public.
Unfortunately, the operating environment within and outside the airline have hindered any possible progress especially in the last six months when the Naira depreciated against the dollar thus making it impossible for the airline to achieve its operational targets.
With these realities coupled with protracted engagements with all relevant stakeholders, the Management of Aero has strenuously reviewed and assessed options and opportunities on ensuring viability, safety and sustainability of operations during the period with a lot of sacrifices.
“The impact of the external environment has been very harsh on our operational performance, hence management decision to suspend scheduled services operations indefinitely effective September 1, 2016 pending when the external opportunities and a robust sustainable and viable plan is in place for Aero Contractors to recommence its scheduled services. The implication of the suspension of scheduled services operations extends to all staffs directly and indirectly involved in providing services as they are effectively to proceed on indefinite leave of absence during the period of non-services,” the Chief Executive Officer stated.
He added that “We are aware of the impact this will have on our staff and our highly esteemed customers, hence we have initiated moves to ensure that we are able to return back to operations within the shortest possible time, offering reliable, safe and secure operations, which the airline is known for.”
