Arik Air Shareholders Blame Nigerian Agency, AMCON For U.S. Flight Suspension, Say Mismanagement Caused Loss Of Major Routes, Aircraft

The Shareholders of Arik Air have accused the Asset Management Corporation of Nigeria (AMCON) of mismanagement that led to the suspension of its flights to the United States.

According to Arik Air shareholders, the discontinuation of its New York (JFK) and London (LHR) routes stemmed from Nigeria’s loss of the US Federal Aviation Administration (USFAA) Category 1 certification—a development they attribute to AMCON’s alleged mishandling of the airline.

The statement, signed by Arik Air’s shareholders and obtained by SaharaReporters, outlines how AMCON’s forcibly took over the airline, resulting in the appointment of incompetent supervisors.

The mismanagement reportedly led to the suspension of international flights and the loss of valuable landing slots at JFK and LHR.

However, the shareholders claim that over 17 brand-new aircraft were cannibalized and destroyed under AMCON’s oversight.

They detailed that AMCON’s intervention initiated the suspension of the Lagos/New York (JFK) flights, which had previously been operated by Hi Fly of Portugal to comply with Part 129 requirements.

After Nigeria regained its Category 1 status and Arik Air obtained its own Part 129 certification, the airline resumed the route with its own Nigerian-registered aircraft and crew, successfully operating it for over six years before AMCON’s takeover.

The statement reads, “The attention of the shareholders of Arik Air has been drawn to the news of recent delisting of Nigeria from the USFAA Category 1 Certification which granted access to the United States travel market by certified Nigerian air operators.

“It should be noted that Arik Air invested in the rigorous and painstaking audit and certification programmes that resulted in the Cat 1 certification for Nigeria and Nigerian air operators in collaboration with the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN) and the Ministry of Aviation and Arik Air between 2009 and 2010.”

According to the stakeholders, Arik Air made direct investments of over $12 million in engaging a world class consultant, SH&E from USA to develop manuals, procedures, supervise and facilitate the implementation of the Cat 1 certification process.

SH&E USA assisted the Nigerian civil aviation authorities and Arik Air, to train several professionals to achieve the USFAA Cat 1 certification for Nigeria and airline operators in Nigeria between 2009/2010.

“During this process, several flights, safety and operations professionals of Arik Air, NCAA and FAAN were trained and certified by USFAA, this is in addition to their respective NCAA certifications. Also, the entire check-in, boarding, security of Nigerian main airports (Lagos/Kano, Abuja & Port Harcourt) related operation support for airlines were enhanced as recommended by the Consultants and approved by FAA,” it said.

It said, “It is important to acknowledge the tireless efforts of Mrs. Fidelia Njeze, former Minister of Aviation, Dr Harold Demuren, former Director General of NCAA, Dr Richard Aisuebeogun, former Managing Director of Federal Airports Authority Nigeria & the Managing Director Nigerian Airspace Management Agency at the time in ensuring the delivery and success of the Cat 1 audit and certification process.

“While attesting to the commitment of Arik Air to aviation development in Nigeria, Dr. Harold Demuren, the then DG NCAA in 2010 explained to newsmen at a press conference of August 15, 2010, in Zaria that Arik Air deployed its newly acquired A340-500 aircraft to fly to Lagos/London-Heathrow/Lagos and Lagos/JFK/Lagos with FAA, NCAA,British Civil Aviation Authority(BCAA) and SH&E(USA) Inspectors and officials for 50 hours without passengers on board and did it successfully to demonstrate its capacity to respond to FAA and BCAA requirements.

“According to Dr Demuren, “Arik Air demonstration of the core competence to operate long haul flights seamlessly is one of the final requirements for the regulatory agency, NCAA, to attain Cat 1 certification” which Dr. Demuren assured Nigerians the nation would attain to celebrate the country’s 50th independence (and it did!).”

The statement continues, “It is regrettable and painful that the reports that Nigeria has been delisted from the USFAA Cat 1 certification listing due to inactivity of a Nigerian operator on the American route among other requirements is now the headlines in the media.

“This inactivity of a Nigerian operator is as a result of the forceful take-over and discontinuation of the long-haul flights of the Arik Air operations by the Assets Management Corporation of Nigeria on 9 February 2017.”

They stakeholders explained that AMCON embarked on the discontinuation of the Lagos /New York -JFK/ Lagos Flights ; a service that was initially operated on behalf of Arik by Hi Fly of Portugal to meet the Part 129 requirement for operators from Nigeria at the time, until Nigeria obtained the Cat 1 status and Arik Air obtained its Part 129 certification.

It noted that Arik Air took over the Lagos/New York /Lagos operations with its Nigerian registered aircraft and crew and operated successfully for over 6 years before AMCON forcefully took over the airline.

It said, “While the acknowledgement of the huge investment of Arik Air Limited in aviation development and pursuit of a first-tier Nigerian own airline service and good image for Nigeria cannot be overemphasized.”

“It is necessary to acknowledge the efforts of Mr Mike McTighe, former Managing Director, Captain Ianko- former Director of Flight Operations, late Captain Victor Egonu, Mr Suraj Sundaram, Mr, Lanre Bamgbose, Mr Shukru Khan, Mr Zaidan Khlifat, Mr Mark Holland Mr. Miguel Sierra, Captain Toks Adekunbi and Captain Ado Sanusi who led the cohorts of the Arik Air flight operations, safety, technical and commercial teams,” Arik stakeholders stated.

“In addition, is the core teams of Nigerian Civil Aviation Authority under the leadership of Dr Harold Demuren, FAAN and NAMA in this arduous national service. They all worked with SH&E(USA) to develop and implement training and certification manuals in strict accordance with global best practices.

The technical support of Boeing Corporation, General Electric, Arik International (UK) and High Fly of Portugal was outstanding and on record.

“In addition, is the active collaboration of the United States Embassy in Abuja and the Consulate in Lagos who facilitated all consular and administrative support for the achievement of Cat 1 by Nigeria and Part 129 for Arik Air.”

The shareholders said the management of Arik Air pre-AMCON takeover of 9 February 2017 did not discontinue flights to New York, adding that the disruption of flights on 29 December 2016 was as a result of a catering truck incident that damaged the airline’s A330-200 aircraft on the said date at the JF Kennedy Airport. USA.

It is on record that AMCON’s appointed Receiver Manager discontinued all Arik long haul flights, they said.

They said, “This lack of deep thinking has caused monumental loss not only to Arik Air as a Nigerian airline, but to the Nigerian state in the loss of Cat 1 status which now ultimately robbed other promising airlines.

“The shareholders of Arik Air understood the demands and level of commitment required for aviation business before investing in the sector, they also understood the enormous goodwill and capital with global networking required to support their country, hence the tireless pursuit of top-quality operating assets and human capital.

“This investment and goodwill had been hemorrhaged by the AMCON appointed Receiver Managers.”

Meanwhile, AMCON forcefully took over the airline and allegedly mismanaged it through its choice of incompetent persons who supervised the discontinuation of New York, London.

They added that the unpardonable embarrassment to the country requires that the government should hold AMCON and its Receiver Managers accountable.

“Now that Arik Air operations had been reduced by over 95% by Receiver Managers of AMCON to the disadvantage of the traveling public and the economy of Nigeria through gross mismanagement and misrepresentation of facts.

“It is not surprising that the perpetrators have continued to mount campaign of calumny against the legacy management of Arik Air through misinformation in order to cover their heinous act of economic sabotage and destruction of value,” they added.