FG takes over Arik Air

The federal government of Nigeria has taken over the operation of Nigeria’s largest domestic carrier, Arik Air, News Agency of Nigeria (NAN) has said.

The Assets Management Corporation of Nigeria (AMCON) on Thursday said it has taken over the operation of Arik Air due to its heavy debt burden .

Jude Nwauzor, AMCON spokesperson, confirmed the development to newsmen in Lagos.

Nwauzor said the airline would now be managed by Capt. Roy Ilegbodu, an aviation expert under the receivership of Oluseye Opasanya (SAN).

He said the government decided to intervene because Arik Air is immersed in heavy debt burden that is threatening to ground its operations.

“For some time now, the airline, which carries about 55 per cent of the load in the country, has been going through difficult times that are attributable to its bad corporate governance and erratic operational challenges.

“Others are inability to pay staff salaries and heavy debt burden among other issues, which led to the call for authorities in the country to intervene before the airline goes under like many before it,’’ he said.

Nwauzor said the move underscores government’s decision to instil sanity in the nation’s aviation sector. (NAN)