THE Federal Government’s debt recovery agency, Asset Management Corporation of Nigeria (AMCON) has again come under scrutiny following its role in the resuscitation of two Nigerian airlines in distress.
The airlines, Aero Contractors and Arik Airlines which suffered financial crisis that almost consumed them were subsequently taken over by the government and handed over to AMCON to run and recoup the debts owed other different organizations including the banks, the government agencies, oil marketers, ground handling companies among others.
AMCON took over the two airlines under a receivership stipulation.
However, ten years after it’s coming into the aviation sector, the different key players after beaming searchlights on the activities of AMCON have continued to rate its performances as regards its impact on the two airlines.
Majority of the key players who have expressed their displeasure at the role of AMCON in the airlines, have rated AMCON low on the ground that ten years after its takeover of the airlines nothing has changed as their liabilities and assets remain uncleared with accusations and counter-accusations from AMCON and the founders of the airlines, especially Arik Air.
According to one of the key players, in order to keep the two airlines under its receivership running, he called for a complete financial restructuring with the aim of understanding the existing debts, operational costs and their revenue streams.
In his comments, the Chief Executive Officer (CEO) of NIGAME Aircraft Consultancy Incorporation, based in Florida, United States, Mr Femi Adeniji, described the interventions of AMCON into the sector as a disappointment, despite its intent to protect jobs and stabilise the industry.
He attributed the failure of AMCON in the sector to corruption, politics and the activities of inexperienced managers who lacked the understanding of the intent of the receivership.
For the managing director of Centurion Security Limited, Group Captain John Ojikutu, retired, AMCON lacked knowledge of commercial aviation management, hence, rather than attempt to keep the two airlines running, AMCON should have partnered with foreign and local technical investors to acquire the liabilities, foreign and local assets of the airlines.
Ojikutu argued that it would take AMCON over 20 years to recover the alleged debts of Arik Air of about N300 billion at a net profit of N10 billion annually, maintaining that it was always difficult for AMCON to achieve.
Director of Research at Zenith Travels Limited, MrOlumideOhunayo recalled that intervention of AMCON in the aviation industry was heralded with applause from most stakeholders and professionals in the sector.
According to Ohunayo, as at the time of takeover by AMCON, the two airlines were struggling to remain in the air, saying they were indebted to service providers, financial institutions, clients, while their obligations to staff were questioned.
“The idea of them (AMCON) coming in was to keep Arik afloat and save jobs in the industry and that was supported by many. But, between then and now, what has happened to the management of the two airlines? AMCON is yet to tell us what they met on ground, what they have achieved and what they have been able to do. Nobody has the finances of the two airlines in the public.
“What we have seen is the controversial sales of aircraft, litigations and barrage of assumed improbable aircraft. There is a lot of convincing that needs to come from AMCON management.”
In his comments, the immediate past President of Aviation Round Table (ART), Elder Gabriel Olowo while describing AMCON’s intervention as suicidal with the case of the two airlines worse off, he however called on the government to carry out assessment of the airlines under AMCON receivership in order to determine its continuous existence or not.
Oloworemarked “What AMCON was doing was to pay the banks indebtedness and still run the airlines. It is not possible, especially the damage of collapsing off-balance sheet loans to on balance sheet. Something that was already on 4 per cent and went to 14 to 16 percent, is automatic bankruptcy and that is why Arumemi-Ikhide has been going in and out of courts.
“You killed Arik, Aero Contractors and the system also killed Nigeria Airways. So, if you want an aviation that would thrive, everything necessary for the sector to survive must be given.”
