The attention of the Shareholders of Arik Air Limited has been drawn to publications in the Daily Post, BuinessDay of 17 July, 2024 and some online publications purporting that 13 Nigerian airlines have been blacklisted by international lessors for contract defaults. The publications stated that “the lessors blacklisted the Nigerian airlines over their refusal to pay lessor fees contrary to the terms of their contract”.
If this is true, it is unfortunately counterproductive to the unrelentless efforts of President Bola Ahmed Tinubu-led federal government in securing very needed foreign direct investment into Nigeria.
We wish to clarify that Arik Air Limited founded in 2006 has a verifiable good record of transactions of acquisition of aircraft with no-default in repayments to the international credit agencies that financed acquisition of her aircraft up until 9 February 2017 when it was forcefully taken over by AMCON through an ex parte order of the Federal High Court.
Arik Air financial model is such that all sales collections are by Nigerian banks. By this collection arrangement, Arik Air authorised the local collection banks that the repayments for the aircraft shall be first charge on the sales collections accounts.
Furthermore, the banks were authorised to bid for forex from the Central Bank of Nigeria (CBN) to pay for the aircraft acquisition. Where the local banks could not source forex from the CBN, Arik Air authorised the banks to purchase forex from other sources/channels to meet these obligations.
By this arrangement, Arik Air Limited has fully paid-up over 80% of its aircraft fleet to the aircraft financiers. Hence, up to 9 February 2017 when AMCON forcefully took over Arik Air there could not have arisen any cases of default in meeting the airline’s obligations.
Suffice it to state that Arik Air commenced domestic flights operations in Nigeria in 2006 and further extended into West, Central Africa and South Africa. The network grew over the years to London Heathrow (which it operated from Lagos for about 9 years), New York (which it operated from Lagos for about 8 years), and Dubai (which it operated from Lagos for about 4 years). During this period (30 October 2006 to 9 February 2017), no Arik aircraft or engines were seized, detained or commandeered for any default.
Rather than seizures, based upon Arik satisfactory repayments performance, the international financiers offered about $500 million to Arik to purchase additional newly manufactured aircraft to further expand the airline operational capacity and route network before AMCON forceful take over on 9 February 2017.
Thus, it is an incontrovertible fact that the legacy Arik Air management did not default in any of its aircraft purchase repayments and was not blacklisted by any lessor or aircraft financing partners. Any such reports of default before 9 February 2017 are false, unfounded and grossly misleading
Suffice it to state that Arik Air was placed into receivership on February 8, 2017 vide an ex parte order of the Federal High Court and was forcefully taken over on the February 9, 2017 by AMCON’s receiver manager, Mr. Oluseye Opasanya (SAN) with a large detachment of mobile policemen. The takeover was effected without any form inventory of assets and liability as required by law.
It is interesting to note that AMCON and its Receiver Manager took over Arik Air Limited vide an ex parte order of the Federal High Court Lagos, yet it refused to obey a judgment of the Federal High Court Lagos that granted an unfettered access to the shareholders/directors of Arik Air to their offices in March 2023.
We note with dismay that AMCON took over 19 serviceable aircraft that operated average of 120 daily flights with spare parts inventory valued at about $150M. Arik Air Limited valued at the sum of $3.7 billion by Delloite of London has been recklessly mismanaged by AMCON’s receiver managers resulting in only two serviceable aircraft as of date, the rest have been cannibalised/grounded , engines abandoned in maintenance shops worldwide, multimillion dollars London Heathrow and New York JFK landing slots lost while some aircraft cannot be accounted for due to AMCON’s receiver manager discontinuation of servicing contracted financial obligations of legacy Arik Air Limited. Today, Arik in Receivership has only two operational aircraft and its route network is embarrassingly reduced to Lagos-Abuja-Lagos flights.
As in receivership practice, AMCON Receiver Managers are obligated to service all contracted obligations, duly maintain the aircraft and manage efficiently the network and value of the airline.
In this regard therefore if there is any blacklisting of airline, it is the Arik (in Receivership) by AMCON that is blacklisted and not the legacy Arik Air Limited.
It should be noted that all reported defaults of the airline occurred sometime in 2019, two years into AMCON receivership under the watch of Mr. Oluseye Opasanya SAN through to the tenure of Mr. Kamilu Alaba Omokide FCA (both AMCON receiver managers).
In conclusion, it is important that Nigeria and the international community are informed of the true facts of who and what is working against Nigeria in the international business community.
Hence any such bad reputation associated with Nigeria resulting from negative media in aviation associated with Arik Air (in receivership) is only as a result of mismanagement of Arik Air by AMCON receivership managers.
