Arik, Aero Operation Under AMCON 

Chinedu Eze

Last week, Asset Management Corporation of Nigeria (AMCON) took credit for the success story of Aero Contractors, where it has a 60 per cent stake and is in charge of the management.

After many years the airline was moribund, even under AMCON management, it turned the corner with 14 per cent profit, the first it recorded since 2016. EulogisingAMCON for its feat, the Managing Director, Mr. Gbenga Alade, said the corporation had pushed back Aero Contractors to profitability following its takeover of the management in 2016.

The head of the management of the airline Captain Ado Sanusi, who is the Managing Director and CEO, announced last week that the airline has achieved a significant financial turnaround, reducing its liabilities by 33 per cent and recording a 14 per cent profit margin in 2024, a sharp contrast to the -69 per cent loss recorded in 2022.

Beating his chest, Alade said the new management of the airline had been able to turn around its fortune with two aircraft they got from the Cross River State government.

According to him, “Right now, they have only two aircraft flying and yet they were able to make money from them and the two aircraft did not even belong to them. They were given to them to manage by the Cross River State government. They don’t even have their own. The ones they have had problems, and they are trying to fix them.

“Now that they have started to make a profit, they are creating a pool of funds to refurbish their own aircraft. They also have plans to bring five more 737-500 series very soon on dry lease arrangement.”

He confirmed that Cross River State government had given Aero two additional aircraft, which the airline would put into use soon and expressed optimism that  Aero would transform the airline market with almost 10 aircraft, remarking that it is an airline to watch out for and because they have a history of safety among the airlines, they will take the market by storm very soon.

“If they don’t have their own aircraft but leasing and hiring engines to fly and are able to make a profit, imagine what will happen if they have their own,” Alade said.

But Ironically, while Alade was eulogizing Aero Contractors, he was mute about Arik Air, which was allegedly run down by AMCON, considering that the corporation inherited 19 aircraft (AMCON oscillates on the number between 17 and 19) when it took over the airline on February 9, 2017. But on December 10, 2024, the 19 aircraft had been reduced to three airworthy aircraft under AMCON’s receivership. And in the past few years, the airline has never had more 4 of the inherited aircraft that were airworthy at any point in time. AMCON also inherited about 5, 000 personnel and currently the workforce is about 1, 500.

Consequently, Justice Mojisola Dada of the Special Offences Court in Ikeja, Lagos, last Tuesday, issued a bench warrant for the arrest of Ahmed Lawal Kuru, the former Managing Director of the Asset Management Corporation of Nigeria, over an alleged fraud involving N76 billion and $31.5 million. The bench warrant was issued after Kuru failed to appear in court for his arraignment.

The court had scheduled the arraignment of Kuru alongside Captain Roy Ilegbodu, the Managing Director of Arik Air; Kamilu Omokide, the receiver-manager of Arik Air; Union Bank PLC; and Super Bravo Limited.

The accused faced six charges, including making false statements, fraudulent conversion, abuse of office, stealing, and dishonest conversion of property, all brought against them by the Economic and Financial Crimes Commission (EFCC).

The EFCC alleged that in 2011, Union Bank Nigeria Plc caused the unwarranted sale of Arik Air’s loans and bank guarantees by making false statements to AMCON regarding Arik Air’s performing loans, later transferring N71 billion to AMCON.

The commission further claims that Kuru, Omokide, and Ilegbodu stole and fraudulently converted N4.9 billion for their own use through NG Eagle Limited in 2022.

The EFCC also accuses Ilegbodu, in his role as MD/CEO of Arik Air Limited in receivership, of stealing N22.5 million in May 2024, which he fraudulently converted for the use of Magashi Ali Mohammed’s property of Arik Air Limited.

Additionally, the Commission stated that on July 11, 2019, Kuru and Omokide, in their roles as public officers, incorporated NG Eagle Limited (RC Number 1600277) to secure undue advantage for themselves and their associates.

The accused parties are also alleged to have authorisedthe destruction of a Boeing aircraft, valued at $31.5 million, on February 12, 2022, in an arbitrary act harmful to the economic stability of Nigeria and Arik Air.

On November 29, 2023, the defendants allegedly converted three Boeing aircraft, registered 5N-MJG, 5N-MJN, and 5N-MJE, belonging to Arik Air, for use by Super Bravo Limited.

The EFCC said these offenses contravene various sections of the criminal law of Lagos State, including Sections 96, 278(1)(a), 278(1)(b), and 278(6) of the Criminal Law of Lagos State (2011 and 2015).

So, while AMCON brought the hitherto biggest Nigerian carrier down, it resurrected Aero Contractors. But according to industry observers, the success of Aero Contractors was due to the dexterous management of one man, Captain Ado Sanusi. Aero Contractors was at the quagmire of extinction when Sanusi took over the management of the airline in February 2017. Then the company was not able to pay the salary of the workers; in fact; the Management Director of the airline then was about to throw in the towel, when captain Sanusi was appointed to take over.

Everything was bleak. Ahead was foggy, dark labyrinthine towards a cul-de-sac.  Then Sanusi decided to revive the aircraft maintenance arm of the company. It received the Aircraft Maintenance Organisation (AMO) certification from the Nigeria Civil Aviation Authority (NCAA) and started the maintenance of some aircraft types, including Boeing 737 classic, Bombardier Q300 and Q400 and helicopters. That success revived some hopes. Aero recalled the engineers and others sent on redundancy and then started paying the salary arrears of the workers.

It is worthy to note also that Aero Contractors slumped again when Sanusi left the company to manage another emerging airline. Salary stopped coming for nine months, but in October 2022, Sanusi was called back to manage the airline and he revived it again. And as Mr. Alade noted, the airline has moved from nothing to profitability, credit will only be given to AMCON for appointing the man that made the change.

Sanusi had told THISDAY that the secret of his success at Aero, was prudent management of resources. The industry wished that AMCON was so prudent at managing Arik Air.