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Home BUSINESS Aviation unions allege cheap sale of Arik, Aero over debts

Aviation unions allege cheap sale of Arik, Aero over debts

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Aviation unions also allege Aero refuses to complete redundancy payment

By Jeph Ajobaju, Chief Copy Editor

Both Airk Air and Aero Contractors are being sold off on the cheap because of their debts, according to the National Union of Air Transport Employees (NUATE) and the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN).

Abuja’s bad debt manager, the Asset Management Corporation of Nigeria (AMCON, owns majority shares in both Arik Air and Aero Contractors.

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NUATE General Secretary Ocheme Aba and ATSSSAN Deputy General Secretary Francis Akinjole accused Aero Contractors of planning to reduce 40 per cent of the workforce.

They also alleged that Aero refused to address its failure to complete redundancy payment for those it asked to stay at home since 2016.

The unions in a joint statement appealed to the National Assembly (NASS), Ministers of Aviation and Labour and Employment to intervene and save both airlines.

“We would have been silent on Arik Air for now, but for the fact that the House of 5A’s lease arrangement that was chased out of Aero has found its way into Arik Air.

“Disturbingly, there is evidence of a case of collusion between the management of Aero and Arik Air. As we understand, the new lease arrangement was to come into operation last Friday but got shelved,” the statement said.

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Toxic agenda

“Though we are yet to be furnished with Arik’s share of the spoils under this arranged contraption called a lease, we can say authoritatively that, like in Aero, the House of 5A’s aircraft have been gifted Arik’s juicy routes of Lagos/Abuja/Lagos, Abuja/Port Harcourt/Abuja, and Abuja/Kano/Abuja based on the released schedule.

“We consider this to be mischief beyond bounds, and a joke taken too far. Surely, we will not co-habit with this toxic agenda,” the statement added , per The PUNCH.

“Therefore, we shall immediately direct all Arik workers to withdraw all services from this aircraft if, and when, it comes to our knowledge that indeed the same level of toxicity as in the case of Aero also applies in this case in Arik.”

The unions asked Aviation Minister Hadi Sirika, the NASS, and other stakeholders to probe the alleged selling of one or both airlines to “the promoters of 5A’s for cheap after the airlines must have been forced to the ground by an artificially created financial crumbling.

“We also call for a strong and deeply reflective interface among the Ministry of Aviation, AMCON, and the legacy shareholders of Aero Contractors and Arik Air for the purpose of knocking out a deal that could truly rejuvenate the airlines.”

Aero denies allegations

Aero Contractors reacted in a statement by describing the claims as “wild and unfounded” and “pure mischief”.

“On the House of 5A’s, every partnership was done with the aim of improving the revenues of the airline, particularly in relation to our unserviceable equipment and ensuring standard customer service,” Aero explained.

“The question is what was our revenue before, during and after the exit of the House of 5As? They [the unions] should please respond.

“We are conscious of the challenges we are facing and have been prudent with our expenses, and doing our best to take care of staff welfare.

“We urge the staff and unions to desist from this attitude and support the company to overcome its challenges.”

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