NUATE Raises Alarm Over AMCON's Management of Aero Contractors
The National Union of Air Transport Employees (NUATE) has expressed serious concerns regarding the alleged mismanagement of Aero Contractors by the Asset Management Corporation of Nigeria (AMCON). The union is now calling on the Federal Government to intervene urgently.
Background of AMCON's Involvement
AMCON took over the full management of Aero Contractors in 2016 after dissolving its previous management team. Prior to this, AMCON had already acquired a partial stake in the airline. However, according to a circular signed by NUATE President Ben Nnabue, the current management approach is undermining the airline's operations and growth potential.
Allegations of Funding Neglect
The union accuses AMCON of failing to provide the necessary funding required to sustain Aero Contractors' operations. This lack of financial support, NUATE claims, has negatively affected the airline's stability in an already challenging aviation environment. The union is demanding that AMCON divest its shares in the airline through the stock market to allow for more professional and market-driven management.
Lack of Technical Expertise
NUATE also criticized AMCON's involvement in the day-to-day running of the airline, alleging that the corporation lacks the technical expertise required in the aviation industry. The deployment of personnel without adequate industry knowledge has led to operational setbacks, the union said. Specifically, NUATE accused AMCON of redeploying staff from Arik Air to Aero Contractors, noting that Arik Air's performance deteriorated under AMCON's management. The union warned that such moves could negatively impact Aero Contractors, which had grown steadily from a single aircraft to a fleet of nearly six aircraft through prudent management.
Financial Concerns
Additionally, NUATE alleged that AMCON directed Aero Contractors to remit its internally generated savings to the corporation, rather than allowing the airline to reinvest the funds into expansion and operational improvements. Describing this as counterproductive, the union warned that it could stall the airline's recovery efforts and weaken its financial base.
Call for Government Intervention
The union is calling on the Federal Government and relevant authorities to urgently intervene by granting Aero Contractors waivers and relief on tax liabilities to support its recovery and ensure long-term sustainability. The circular read in part: "AMCON, under whose management Arik Air deteriorated, is now redeploying Arik Air staff to Aero Contractors. This is despite Aero Contractors growing organically from one aircraft to a fleet of nearly six aircraft through prudent management. AMCON has requested that Aero Contractors remit its saved funds to AMCON's coffers, rather than allowing the company to reinvest in expansion and turnaround initiatives. We respectfully request that the appropriate authorities grant Aero Contractors Company waivers and relief on tax liabilities to support its recovery and growth."
AMCON's Response
Efforts to reach AMCON for comment were unsuccessful. However, a source close to AMCON, who spoke on condition of anonymity, said that the asset management company had improved the airline's performance over the years through its takeover. The source also confirmed that about a month ago, AMCON seconded the Director of Finance and Admin of Arik Air to Aero Contractors, while the corresponding officer from Aero Contractors was redeployed to Arik Air. The source added that AMCON would address all the concerns raised by the union.
