Airline shuts down operations indefinitely, suspends all staff

dimeji akinloye

August 31, 2016 7:00 PM

The CEO of the airline said the decision was made as part of the strategic business realignment to reposition the airline and return it to the path of profitability.

Aero Contractors aircraft

The Chief Executive Officer of the airline, Mr Fola Akinkuotu, disclosed this in a statement issued in Lagos on Wednesday.

He said the airline's management made the decision as part of the strategic business realignment to reposition the airline and return it to the path of profitability, stressing that all workers, directly and indirectly, will proceed on indefinite leave of absence.

“This business decision is as a result of the current economic situation in the country, which has forced some other airlines to suspend operation or outrightly pull out of Nigeria," he said.

“In the case of Aero, the airline has faced grave challenges in the past six months, which impacted its business and by extension the scheduled services operations,’’

Akinkuotu said the impact of the external environment has been very harsh on the airline’s operational performance.

He said: “This suspension is 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 staff directly and indirectly involved in providing services, as they are effectively to proceed on indefinite leave of absence during the period of non-services.

“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."

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The CEO added that the appointment of Mr Adeniyi Adegbomire as the airline's Receiver Manager on Feb. 6, 2016, by the Asset Management Company of Nigeria (AMCON), was part of the company's resolve to ensure the airline survives, unlike most other carriers that experienced short life span in the country.

Akinkuotu noted that AMCON’s intervention in Aero Contractors since 2011 has provided support for the airline to meet working capital requirements and fleet expansion.

According to NAN, the airline’s counter at the Murtala Muhammed Airport Terminal (MMA2) was empty today when the news agency visited there.

dimeji akinloye