The Asset Management Corporation of Nigeria (AMCON) has reached an advanced stage towards launching a multibillion naira airline by pooling together its aviation assets especially planes in debt-ridden Arik Air and Aero Contactors Airlines.
The new international airline, to be named Nigeria Eagle, may take to the sky with at least 10 planes as early as June, according to insiders who spoke on condition of anonymity.
When contacted, the spokesperson for AMCON, Jude Nwauzor, confirmed that the corporation was floating an airline but declined to give further details, adding that the carrier would issue a statement on the matter very soon.
It was learnt that AMCON, a Federal Government-owned bad debt manager which owns controlling stakes in both Arik and Aero, chose to establish the new airline as a clever means of wriggling out of the multibillion naira liabilities currently hanging on the two carriers.
The debts are believed to be hindering new buyers from showing interest in the two carriers which AMCON has been willing to sell.
AMCON took over the management of Arik and Aero some years ago, following the two carriers’ inability to continue servicing their debts running into several billions of naira.
The latest move by AMCON to pool its assets especially planes in the two carriers is expected to help the bad debt manager to recover its investment in the two carriers ahead of its winding down in 2023.
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A top AMCON official familiar with the deal, who spoke with newsmen on condition of anonymity, said:
We are not trying to merge Arik and Aero. We are trying to strategically assemble all our aviation portfolios under one umbrella. The challenge of selling Aero is humongous. The challenge of Arik is even double. Our interest is not in the branding level, it is in our portfolio- the money we invested over the years to protect these airlines.
The management gave us a strategy. The one we did with Bank of Industry. A lot of money was pumped into those airlines and that is why they are still standing till today. I am sure you heard when Ethiopian Airlines was rumoured to want to buy Arik.
Why you hear of a debt profile of close to N300bn, it is very scary. If you assemble all your assets under a fresh umbrella, dealing with the thing will be easy. That is what management is trying to do. Even the idea of merging the two airlines is difficult. That is what is going on.
Further findings revealed that the airline, might be launched probably by June, 2021.
According to aviation industry sources, AMCON has gone as far as 80 per cent of the steps it needs to take towards setting up the carrier.
