Economic Hardship! Aero Contractors, First Nation Airlines Suspend Operations In Nigeria

Aero Contractors and First Nation Airlines on Wednesday said that it would suspend all scheduled services indefinitely from Thursday Sept. 1.

The airline’s Chief Executive Officer, Mr Fola Akinkuotu, said in a statement in Lagos that the management decision was part of the strategic business realignment to reposition the airline and return it to the path of profitability. He said that all staff directly and indirectly involved in providing the services, would also proceed on indefinite leave of absence.

“This business decision is as a result of the current economic situation in the country, which has forced some other airlines to suspend operation or outrightly pull out of Nigeria. “In the case of Aero, the airline has faced grave challenges in the past six months, which impacted its business and by extension the scheduled services operations,’’ he said.

Akinkuotu said the impact of the external environment had been very harsh on the airline’s operational performance, hence the management’s decision to suspend scheduled services operations indefinitely effective Sept.1, 2016. “This suspension is 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 staff directly and indirectly involved in providing services, as they are effectively to proceed on indefinite leave of absence during the period of non-services.

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,’’ he said.

Akinkuotu said that both internal and external environmental factors had made it difficult for the airline to continue its scheduled services, leading to the management’s decision. He recalled that, 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 as Receiver Manager in Feb. 6, 2016.

Akinkuotu also noted that since AMCON’s intervention in Aero Contractors in 2011, it had provided support for the airline to meet working capital requirements and fleet expansion. When NAN correspondent visited the airline’s counter on Wednesday, the ticket counters at the Murtala Muhammed Airport Terminal (MMA2) were empty.

In another development, First Nation Airlines, has followed suit, suspending its operations.

The Director-General of the NCAA, Capt. Muhtar Usman, explained that the decision was taken in order to ensure that the airline carried out the required maintenance of its aircraft. Usman, however, refuted claims that some of the domestic airlines were winding down their operations regardless of the fact that they had suspended flight services. A statement signed by NCAA’s DG said:

The First Nation Airlines on its part is in the middle of an Engine Replacement Programme for one of its aircrafts. Another aircraft is due for mandatory maintenance as allowed by the regulatory authority. “In these circumstances, these airlines clearly cannot continue to undertake schedule operations, hence the inevitable recourse to self regulatory suspension.

 Usman insisted that the domestic carriers had not wound down their operations, but were “merely suspending their operations temporarily to enable them undertake certain operational overhaul and strengthen their overall operational outlay.”