One of the oldest domestic airline operators in Nigeria, Aero Contractors Airlines
has announced that it would suspend its scheduled services from tomorrow, Thursday
September 1, 2016. A statement from the Chief Executive Officer, Capt. Fola
Akinkuotu said the development was part of the strategic business realignment
to reposition the airline and return it to the part of profitability.
This business decision,
which is a result of the current economic situation in the country, has forced
some other airlines to suspend operation or out rightly pull out of Nigeria. In
the case of Aero, Akinkuotu said the airline had faced grave challenges in the
past six months which impacted its business and by extension the scheduled
services operations. These factors, according to him are both internal and
external environmental factors that have made it difficult for the foremost airline
to continue its scheduled services.
He said during the period
in review, Aero, which was hitherto revered for its safety, timeliness among
other virtues witnessed epileptic operations and services to the external
publics that are caused by non-alignment of fundamental issue of the business,
which in some cases have been frustrating and embarrassing to all parties
including staff, customers and indeed all stakeholders.
As part of its resolve to
ensure the airline survived unlike most other carriers that experienced short
life span in the country, AMCON had appointed Mr. Adeniyi Adegbomire SAN as
Receiver Manager in February 6, 2016, with the aim of turning the airline
around. Since AMCON's intervention in Aero Contractors in 2011, it has provided
support for the airline to meet working capital requirements and fleet
expansion. These were to ensure the airline remains a going concern providing
services to various clients and the general public.
Unfortunately, the
operating environment within and outside the airline have hindered any possible
progress especially in the last six months when the Naira depreciated against
the dollar thus making it impossible for the airline to achieve its operational
targets.
With these realities
coupled with protracted engagements with all relevant stakeholders, the
Management of Aero has strenuously reviewed and assessed options and
opportunities on ensuring viability, safety and sustainability of operations
during the period with a lot of sacrifices.
“The impact of the
external environment has been very harsh on our operational performance, hence
management decision to suspend scheduled services operations indefinitely
effective September 1, 2016 pending when the external opportunities and a
robust sustainable and viable plan is in place for Aero Contractors to
recommence its scheduled services. The implication of the suspension of
scheduled services operations extends to all staffs directly and indirectly
involved in providing services as they are effectively to proceed on indefinite
leave of absence during the period of non-services,” the Chief Executive
Officer stated.
He added that “We are
aware of the impact this will have on our staff and our highly esteemed
customers, hence we have initiated moves to ensure that we are able to return
back to operations within the shortest possible time, offering reliable, safe
and secure operations, which the airline is known for.”