An estimated 1,200 staff of Nigeria’s oldest airline, Aero Contractors, would lose their jobs following suspension of all its scheduled operations.
Penultimate Thursday, The carrier, had said it was ‘re-positioning to return to profitability.’
The
implication is that over 1,200 workers have been thrown into the labour
market as the carrier has about 1,250 workers. Before now, Aero, which
was one of the most stable carriers in Nigeria, had commenced downsizing
of its workforce by 50 per cent. Other airlines are said to be
tinkering with the idea of cutting their workforce by the same number.
There
are indications that more airlines may close shop before the end of the
year, owing to economic recession, poor business plan, humongous debts
and lack of support from banks.
A mild drama ensued at the Murtala
Muhammed Airport 2 terminal as passengers, who were oblivious of the
plan by the airline to shut operations, besieged the counters of the
airline for airfare refund.
A visit to the airline’s help desk at
its Lagos headquarters revealed a long queue of passengers, who were
being reimbursed. A source close to the carrier, who spoke under
condition of anonymity, put the airline’s trade debt at N20 billion,
adding that the brand had been badly eroded over crisis that has left
the 57-year-old airline in pitiable situation.
The source stated
that the Assets Management Corporation of Nigeria (AMCON) took the best
decision to suspend the airline’s operations to avoid a crash, owing to
how badly the carrier was run.
The Chief Operating Officer of Aero
Contractors, Capt. Fola Akinkuotu, said that the development was part
of the strategic business realignment to reposition the airline and
return it to profitability.
The decision, which is a result of the
current economic situation in the country, he reiterated, had forced
some other airlines to suspend operations or outrightly 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 service operations.
The factors,
according to him, are both internal and external 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, witnessed epileptic operations and services to the
public.
As part of its resolve to ensure the airline survived,
unlike most other carriers, AMCON appointed Mr. Adeniyi Adegbomire (SAN)
as Receiver Manager on February 6, 2016, with the aim of turning the
airline around.
Since AMCON’s intervention in 2011, it has
provided support for the airline to meet working capital requirements
and fleet expansion. These were to ensure the airline remained a going
concern providing services to various clients and the general public.
Unfortunately,
the operating environment within and outside the airline hindered any
possible progress, especially in the last six months, when the naira
depreciated against the dollar.
With these realities coupled with
protracted engagements with all relevant stakeholders, the management
strenuously reviewed and assessed options and opportunities on ensuring
viability, safety and sustainability of operations.
“The impact of
the external environment has been very harsh on our operational
performance, hence management’s deci-sion to suspend scheduled service
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 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,” the chief executive officer stated.
Akinkuotu
added: “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 to operations within the shortest possible time,
offering reliable, safe and secure operations, which the airline is
known for.”
As at today, over 600 commercial pilot certificate
holders are without jobs, owing to the fact that the number of airlines
in the country has reduced by over 60 per cent of what it was a decade
ago.
The airlines passing through financial turbulence are finding
it difficult to approach banks to rescue them following huge
indebtedness to various financial institutions.
No comments:
Post a Comment