The AMCON Pill Is Bitter: Aerocontractors Sacks 900 Staff

Nairametrics| One year after the Asset Management Company of Nigeria (AMCON) intervened in the affairs of Aero Contractors Company of Nigeria, it seems to be far from positive, as the management of the airline has sacked about 900 staff members. The employees were relieved of their duties due to a lack of operational aircraft in their fleet.

Here is what we know about the current sacking:

  • Aero Contractors sacks 900 workers – about 60% of the company’s entire workforce.
  • The airline had a total of 1,500 staff as at September 2016, when it suspended its flight operations.
  • Prior to the sack, the airline had a ratio of one aircraft to 500 people (1:500), which was bloated.
  • The reduction in overheads will be used to bring in more aircraft from C-checks abroad.
  • The affected staff will be recalled when the airline acquires more aircraft.
  •  Critical staff members are not affected by this sacking.

Aero Contractors was established in 1958 and is arguably Nigeria’s oldest private airline. AMCON took over its operations in 2013, and is the airline’s largest shareholder and creditor. The remaining 40% stake is held by the Ibru family. Aero Contractors has spent over N20 billion on the airline so far. AMCON, in February 2017, also took over Arik Air.

 

 

 

 

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Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training.

He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE).

He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.

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