TheCable

The Asset Management Corporation of Nigeria (AMCON) has incurred about $53 million (N22.19 billion) loss as cost implications over uncertainties surrounding the operation of the Nigerian Eagle (NG Eagle).

In December 2019, AMCON started the process of getting an air transport licence and air operating licence (AOC) with three aircraft for the NG Eagle.

NG Eagle is an airline being birthed by AMCON to exit Arik Air.

Last year, the senate committee on aviation said it was misinformed over the development of NG Eagle and charged Nigerian Civil Aviation Authority (NCAA) to go ahead with its duties and perform its statutory functions as the regulator of the aviation industry without interference.

The committee had earlier ordered NCAA not to grant AOC to NG Eagle until AMCON resolved various issues with Arik Air, including staff welfare.

Bala Na’Allah, deputy chairman of the senate committee, had said that the senate “would no longer interfere with the statutory functions of the NCAA because the right of NG Eagle will be unfairly violated if its AOC is not released after the company has complied with all mandatory duties”.

Despite this, the delay in granting an operating licence to the airline had serious cost implications on the business.

An industry source said NCAA refused to sign an operating certificate to NG Eagle due to political reasons and debt owed by Arik Air (now under AMCON’s receivership) to various civil aviation agencies.

The source told TheCable that all aircraft for the airline have been idle for over one year — and one of them is currently due for a C check, a deep inspection of an aircraft’s parts, causing financial implications.

According to a document seen by TheCable, as at March 2022, NG Eagle had lost about $2.4 million due to the heavy maintenance costs of aircraft while projection revenue lost accounted for $45.75 million since AMCON started the process.

Others include rent ($25,000), salaries ($1.66 million), Insurance and Engine lease/shipment gulped N934 million and N757 million, respectively, among others.