Economic recession: Aero Contractors to suspend operation September 1st

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One of Nigeria’s local airline operator, Aero Contractors has said it would suspend its scheduled services from tomorrow, 1st of September, 2016 as part of its strategic business realignment to position the airline for profitability.

In a statement released by company, it said the decision was necessitated by the current economic situation in the country which has forced some airlines to suspend operations.

“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.

Speaking on the development, Chief Executive Officer of the airline, Captain Fola Akinkuotu, said the airline had faced grave challenges in the past six months which impacted its business and by extension the scheduled services operations.

He added that “We are aware of the impact this will have on our staff and our highly esteemed customers, hence we have initiated moves to ensure that we are able to return back to operations within the shortest possible time, offering reliable, safe and secure operations, which the airline is known for.”

ALSO SEE: Aero to scale down cost of operation as recession bites hard

He said during the period in review, Aero, which was hitherto revered for its safety, timeliness among other virtues 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.

The implication of the suspension of scheduled services operations extends to all staffs directly and indirectly involved in providing services as they are effectively to proceed on indefinite leave of absence during the period of non-services,” the Chief Executive Officer stated.

Recall that as part of its resolve to ensure the airline survived unlike most other carriers that experienced short life span in the country, AMCON had appointed Mr. Adeniyi Adegbomire SAN as Receiver Manager in February 6, 2016, with the aim of turning the airline around.

Since AMCON’s intervention in Aero Contractors in 2011, it has provided support for the airline to meet working capital requirements and fleet expansion. These were to ensure the airline remains a going concern providing services to various clients and the general public.

Unfortunately, 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 thus making it impossible for the airline to achieve its operational targets.

 

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