AMCON Calls for Fresh Bailout of the Aviation Industry

• AMCON Calls for Fresh Bailout of the Aviation Industry

In an effort to protect jobs and support businesses in the aviation industry, the Asset Management Corporation of Nigeria (AMCON) has called on the Federal Government to make bailout of the industry a top priority.

This was disclosed in a statement signed by the corporation’s Executive Director of Operations, Mr. Aminu Ismail, and released in Abuja on Thursday.

Ismail explained that AMCON’s previous intervention has led to the acquisition of around $1 billion non-performing loans owed by major airlines to Nigerian banks, these airlines include Arik and Aero Contractors.

Between 2012 and 2020, the Federal Government has spent a total sum of N50 billion to stabilise the aviation sector, Ismail stated.

He said the intervention is to support growth in the sector and protect jobs, especially with the huge cost of maintenance and operations of businesses in the sector.

It should be recalled that the Minister of Aviation, Hadi Siriki, had said many airlines won’t survive COVID-19 lockdown.

According to Hadi, airlines are losing about N17 billion to the lockdown monthly.

He said “Certainly in civil aviation, we’re in very difficult moments like everyone else…but we are worst hit than any other sector. Some N17bn monthly is being lost by the Airlines to COVID-19.”

“This is the situation of civil aviation. It is really a pathetic one and I can guarantee you that several airlines won’t come out of this unfortunately.”

“To open up and start business as usual, there are safety issues and concerns. Those airplanes have been kept, and when we see going to bring them back into service, we will ensure their worthiness.

“For the flight crew, there are certain standards they must conform to, like ensuring they are up to date with their licensing. Their medical health and proficiency in order to conduct a very dare flight must be ascertained.”