AMCON takes over Aero Contractors Airlines, appoints manager

The Asset Management Company of Nigeria, AMCON, yesterday dissolved the Board of Aero Contractors Airlines and appointed a Manager to oversee the daily affairs of the airline. AMCON is both the majority shareholder and creditor of Aero. The debt management company said the reason behind the takeover is to protect the brand heritage of the airline maintaining that its intervention was in the public interest to sustain and improve the “robust and premium quality service of the airline”. AMCON has also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last 5 years. Aero Contractors is Nigeria’s oldest aviation company which commenced business in 1959, initially providing services to oil and gas sector, before venturing into fix wing operations in the year 2000. Currently, the Asset Management Company of Nigeria (AMCON) owns 60% of the company with the remaining 40% held by the Ibru family. AMCON had in 2010 invested 15 Billion Naira (Fifteen Billion Naira) in Aero and later injected 5 Billion Naira , ( Five Billion Naira ), bringing their total financial exposure to 20 Billion Naira. A statement by AMCON released by the Media Consultants to Aero Contractors, SY&T Communications, yesterday said “In furtherance of the statutory responsibility of acquiring Eligible Bank Assets and putting them to economic use in a profitable manner, the Asset Management Company of Nigeria (AMCON) has dissolved the Board of Aero Contractors and appointed a Manager over the affairs of the airline. AMCON is both the majority shareholder and creditor of Aero.” “An Industry based management team will be put in place to provide the highest level of professional competence which would ensure a quick repositioning of the company.” “The management of AMCON decided to make changes in the Management of the airline to protect the brand heritage of the airline, a very well cherished value. AMCON also maintains that its intervention is in the public interest to sustain and improve the robust and premium quality service which Aero is known for in the country. “AMCON would like to assure the regulatory authorities, the traveling public and key stakeholders that the airline will continue to operate on the solid foundation of safety and security with excellent customer service. AMCON has also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last 5 years.”