The National Union of Air Transport Employees (NUATE) has raised concerns over the alleged mismanagement of Aero Contractors by the Asset Management Corporation of Nigeria (AMCON). The airline, however, has refuted these claims, denying any direct involvement by AMCON in its day-to-day operations.
Background of AMCON's Takeover
AMCON officially took over Aero Contractors in 2016 following the dissolution of its management. Since then, the airline has operated under receivership, a status that its public relations agency, SY&T Communications Ltd, emphasized is not unusual for distressed companies globally.
NUATE's Allegations
In a circular signed by its President, Ben Nnabue, NUATE warned that the airline's operations and growth are being undermined. The union accused AMCON of failing to provide necessary funding to sustain operations, negatively affecting Aero's stability in a challenging aviation environment. NUATE also urged AMCON to divest its shares in the airline through the stock market to allow for professional, market-driven management.
NUATE further alleged that AMCON lacks the technical expertise required in aviation, citing the redeployment of staff from Arik Air to Aero Contractors as a key issue. The union noted that Arik Air's performance deteriorated under AMCON's management and warned that similar outcomes could affect Aero, which had grown from a single aircraft to a fleet of nearly six through prudent management.
Additionally, NUATE claimed that AMCON directed Aero to remit its internally generated savings to the corporation instead of reinvesting in expansion and improvements. The union described this as counterproductive, potentially stalling recovery efforts and weakening the airline's financial base.
Aero Contractors' Response
SY&T Communications Ltd, representing Aero, stated that the airline is in receivership and that no healthy company goes into that status. It highlighted that Capt. Ado Sanusi, a thoroughbred professional, manages Aero as Managing Director and has been performing excellently. The agency dismissed claims of AMCON running the airline as "pure mischief." It clarified that AMCON can second staff to entities where it has interests, such as Aero or Arik, but this does not imply direct operational control.
Call for Government Intervention
NUATE called on the Federal Government and relevant authorities to intervene urgently by granting Aero Contractors waivers and relief from tax liabilities to support its recovery and ensure long-term sustainability.
