Nigeria’s biggest airline Arik air said it will challenge its takeover of operation by the government.
Nigeria: Arik air plans to challenge government takeover
The authorities in Nigeria on Thursday officially took over the management of the airline stating that the decision had become necessary in order to save the distressed airline.
Arik Air has been in financial trouble and the government said it was stepping in to prevent it from being distressed.
The Airline has not paid its workers and creditors for months and has at least eight of its aircraft grounded.
The Asset Management Corporation of Nigeria (AMCON), had obtained a court order to take over the airline.
AMCON in a statement said Arik will now be managed by a veteran aviation expert, Captain Roy Ukpebo Ilegbodu, under the receivership of Oluseye Opasanya (SAN).
According to AMCON in a statement the “immediate intervention” was required to assist the company in returning to normal operations and ensuring “safety and stability in the already challenged aviation sector.”
As Nigeria’s economic crisis deepen, both international and local carriers have faced mounting challenges that have wreaked havoc on operations, causing frustration and chaos at airports across Africa’s most populous nation.
At some airports, fights have broken out between passengers frustrated at delays or cancellations and equally demoralised airline staff.
Nigeria’s government takes over Arik Air to avert ‘catastrophe’ – Financial Times – https://t.co/w7Gw8ZXAlM— Royal Times Nigeria (@royaltimesng) February 10, 2017
However, Arik Air’s deputy managing director,Ado Sanusi said the company would comply with the government’s order, but would seek a court order.