Aero Contractors Airlines has announced that it would suspend its scheduled services indefinitely from Thursday, September 1, 2016.
According to the airline, the decision was as a result of the current economic situation in the country, which had gravely affected its business over the past six months and by extension, its scheduled services operations.
The airline management, in a statement made available to The Point, however, said that suspending operations was part of the strategic business realignment to reposition the airline and return it to the part of profitability.
“The factors responsible for the suspension are internal and external environmental factors that have made it difficult for the foremost airline to continue its scheduled services,” the airline’s Chief Executive Officer, Capt. Fola Akinkuotu was quoted as saying.
He said that during the period in review, Aero witnessed epileptic operations and services to the external publics that are caused by non-alignment of fundamental issue of the business, which in some cases have been frustrating and embarrassing to all parties including staff, customers and indeed all stakeholders.
Determined to ensure the airline survived unlike some other carriers that experienced short life span in the country, AMCON had earlier in February, appointed Mr. Adeniyi Adegbomire, a Senior Advocate of Nigeria, as Receiver Manager, with the aim of turning the airline around.
Since AMCON’s intervention in Aero Contractors in 2011, it had 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, Akinkuotu said, the operating environment within and outside the airline have hindered any possible progress, especially in the last six months when the Naira depreciated against the dollar, thereby making it impossible for the airline to achieve its operational targets.
“With these realities, coupled with protracted engagements with all relevant stakeholders, the Management of Aero has strenuously reviewed and assessed options and opportunities on ensuring viability, safety and sustainability of operations during the period with a lot of sacrifices.
“The impact of the external environment has been very harsh on our operational performance, hence management decision to suspend scheduled services 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,” Akinkuotu stated.
