After its failed attempt to secure the Air Operators Certificate (AOC) for its planned new airline, NG Eagle, the Asset Management Corporation of Nigeria (AMCON) has returned erstwhile Managing Director, Capt. Ado Sanusi to his post at Aero Contractors.
AMCON had wanted to start a new airline from the shackles of Arik Air, but the process was stalled in September 2021 when some industry unions and stakeholders petitioned the Federal Government and the National Assembly, claiming that the corporation wanted to kill Arik Air to start a new airline.
Though the airline had received the Air Transport License (ATL) certificate from the Nigerian Civil Aviation Authority (NCAA) and prepared three aircraft for the commencement of operations, the kick by some of the industry players led to its suspension in October last year.
Sanusi who was appointed as the Chief Executive Officer (CEO) of Aero Contractors in March 2017, was redeployed to NG Eagle as its incumbent Managing Director on January 1, 2021, and replaced him with Capt. Abdullahi Mahmood at Aero.
Before his appointment at Aero, Sanusi was the Vice Chairman at Arik Air, while Mahmood was the Director of Flight Operations at the same airline.
The two airlines; Arik and Aero, are under the receivership of AMCON.
While AMCON 2012 acquired a 60 percent stake in Aero Contractors and increased it to 100 percent a year later, the corporation on February 9, 2017, took over the running of Arik from its former owners due to alleged unpaid debts owed to financial institutions and other service providers.
With the redeployment of Sanusi to Aero, sources indicated AMCON may have jettisoned the idea of establishing the new airline.
A source close to the airline further confided in our correspondent that the three aircraft, Boeing 737 exited from Arik Air for the new airline may have also been returned to the fleet of the airline.
Nairametrics learned that Sanusi would return to the new position by Monday, while Mahmood would also return to his former position at Arik Air.
It was gathered that Sanusi is being returned to Aero Contractors to strategically reposition the ailing airline, which suspended services about three months ago due to a lack of aircraft capacity.
Sanusi as the CEO at Aero Contractors had established Maintenance, Repair, and Overhaul (MRO) facilities for Aero Contractors with partnerships with several companies, including AJ Waters.
The Head of Corporate Communications, AMCON, Mr. Jude Nwuzor could not be reached for comments, but multiple sources at Aero Contractors confirmed the reappointment of Sanusi.
NG Eagle Claim of Loss of N22.214bn In Six Months
AMCON had claimed in April this year that it lost about $53.4 million (about N22.214billion at the official rate of N416 to a dollar then) in six months to the non-issuance of AOC to NG Eagle Airline by NCAA.
A document made available to our correspondent by an industry source, listed salaries, insurance, engine lease/shipment, procurement, contracted services, IT, logistics, rent, repair/renovation (offices), preservation maintenance, contracted engineering personnel, heavy maintenance, and revenue as some of the line item categories the airline had suffered losses on since September 2021 till March 2022.
The document shows that for salaries to 100 personnel, including pilots and engineers, the airline incurred a loss of $1,664,545.26; insurance for three aircraft, $934,611.55; engine lease/shipment, $757,964.57, and procurement, $525,386.82.
Others are contracted services, $298,605.78; IT, $121,829.95; logistics, $113,699.37; rent, 25,588.08; repair/renovation, $16,583.41; preservation maintenance, $36,000; over 20 contracted engineering personnel, $757,620; heavy maintenance, $2,400,000, and revenue losses at $45,750,000.
NG Eagle Airline AOC Crisis
Some industry Unions, the Nigerian Association of Aviation Professionals (ANAP) and National Union of Pensioners (NUP), had kicked against the planned granting of AOC to the NG Eagle Airline by NCAA, claiming that the plan by AMCON to inaugurate a new carrier instead of considering ways to bail Arik Air out of its predicament was a bad business move.
They further alleged that its plan to save the airline from imminent collapse over alleged debts of N30 billion had also failed.
An AOC approved by NCAA and sighted by Nairametrics indicates that the regulatory agency had planned to grant NG Eagle Airline the certificate by September 2021.
The certificate with the number, NGE/AOC/08- 21/001, was to expire on September 20, 2023.
AOC is a certificate authorizing an operator to carry out specified commercial air transport operations and it is usually issued by the Civil Aviation Authorities (CAAs). AOCs are issued to airlines in Nigeria by the NCAA.
The certification is only valid for two years and subsequently renewed once the applicant (operator) fulfills all the requirements.
The certificate read in part: “This certificate certifies that NG Eagle Limited is authorized to perform commercial air operations, as defined in the attached operations specifications, in accordance with the operations manual and the Nigeria Civil Aviation Regulations Part 9.”
