Arik Air has been taken over by Asset Management Company Of Nigeria (AMCON). AMCON was set up the Federal Government in July 2010 to take over bad loans of commercial banks in the country. Arik Air is yet to issue a statement on the take -over. AMCON has a life span of ten years.
AMCON Press Statement on the Intervention to save Arik Air — 09 February 2017 pic.twitter.com/Z8uC5i8doP
— Govt of Nigeria (@AsoRock) February 9, 2017
MD Chris Ndolue is to step aside. In place, Roy Ilegbodu will manage the airline. Arik Air owned by Sir Johnson Arumemi-Ikhide, was established in 2006, and is Nigeria’s largest airline in terms of fleet size and routes covered in the country. The take-over means that the airline is under receivership, as Oluseye Opasanya (SAN) has been appointed as receiver.
The aviation industry in Nigeria is plagued by several challenges including multiple charges by operators, and difficulties in accessing foreign exchange, as well as high level of indebtedness to banks.