HOW ARIK INCURRED OVER 78MIL DOLLARS WITH IATA,

 

Arik Air owes IATA $78m as ex-management sues AMCON

Fresh revelations emerged on Monday that the distressed Arik Air recently taken over by the Assets Management Corporation of Nigeria (AMCON), is owing the International Air Transport Association (IATA) $78 million.

This was the amount accrued from debts yet to be settled by the airline for the services that were rendered to it.

IATA which is the clearing house for over 268 global airlines had last week temporarily suspended Arik from its Billing Settlement Plans (BSP).

This was not unconnected with the huge indebtedness of the airline to the global body.

AMCON also insisted yesterday that it did not take over the airline to liquidate it but to turn the biggest carrier in the country around.

AMCON had taken over the airline on February 9 over alleged indebtedness.

However, the former management has made good its threat to sue AMCON over the takeover.

It was learnt that the new management has been served with court documents.

Media Consultant to AMCON, Simon Tumba in an interactive session with journalists confirmed the development.

According to him, the airline failed because of lack of corporate governance.

Tumba disclosed that the carrier also failed to remit pensions to pension administrators just at is owing many agencies and partners.

He said, “The main function of this current management is we want to stabilize their operations, to rebuild customer’s confidence which is working already.

“Arik is very critical in terms of air traffic and travelers in Nigeria. So it must operate. If Arik does not operate, some businesses would have problem AMCON wants to manage the airline and return it to profitability. It is not under receivership to liquidate.”

He disclosed that the management is working with the Federal Government to bring in five aircraft into the fleet to expand its routes.

Read more at http://www.dailytrust.com.ng/news/business/arik-air-owes-iata-78m-as-ex-management-sues-amcon/187190.html#lK9c2dZxPAtm4uAU.99

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