The Asset Management Corporation of Nigeria (AMCON) is planning to merge struggling airlines Arik Air and Aero Contractors into a single national carrier as both airlines grapple with severe debt issues from local and international financial organizations.
This move comes just months after Festus Keyamo, the Minister of Aviation, suspended the Nigeria Air project, which was originally intended to serve as the national carrier.
The merger is seen as a strategic step to stabilize the aviation sector and address the financial challenges faced by the airlines.
Gbenga Alade, AMCON’s Managing Director/Chief Executive Officer who disclosed the move, said that both airlines have accumulated so much debt that they might not be able to repay it.
Alade mentioned that the idea of merging Arik and Aero Contractors into a national carrier was proposed to a former aviation minister, but the suggestion was not accepted.
He further explained that the previous AMCON management created a special purpose vehicle (SPV) to facilitate the conversion of these airlines into a national carrier, but it was sold off.