National Union of Air Transport Employees (NUATE) has raised the alarm over the alleged mismanagement of Aero Contactors by the Asset Management Corporation of Nigeria (AMCON).

Aero Contactors formally took over the running of Aero Contactors in 2016 when it dissolved its management. Before then, AMCON had taken partial takeover of the airline.

However, the National Union of Air Transport Employees (NUATE), in a circular signed by its President, Ben Nnabue, warned that the airline’s operations and growth are being undermined.

The union accused AMCON of refusing to provide the necessary funding required to sustain the airline’s operations, a development it said had negatively affected Aero Contractors’ stability in an already challenging aviation environment.

The union also wanted AMCON to as a matter of urgency divest its shares in the airline through the stock market to allow for more professional and market-driven management capable of repositioning the carrier for growth.

The circular also faulted AMCON’s involvement in the day-to-day running of the airline, alleging that the corporation lacked the technical expertise required in the aviation industry.

According to NUATE, the deployment of personnel without adequate industry knowledge had led to operational setbacks in a time-sensitive sector.

For instance, NUATE accused AMCON of redeploying staff from Arik Air to Aero Contractors, noting that the former airline’a performance deteriorated under AMCON’s management NUATE maintained that such a move could negatively impact Aero Contractors, which it said had grown steadily through prudent management from a single aircraft to a fleet of nearly six aircraft.

In addition, the union alleged that AMCON had directed Aero Contractors to remit its internally generated savings to the corporation, rather than allowing the airline to reinvest the funds into expansion and operational improvements.

Describing the development as counterproductive, NUATE warned that it could stall the airline’s recovery efforts and weaken its financial base.

The union, therefore, called on the Federal Government and relevant authorities to urgently intervene by granting Aero Contractors waivers and relief on tax liabilities to support its recovery and ensure its long-term sustainability.

The circular read in part: “AMCON, under whose management Arik Air deteriorated, is now redeploying Arik Air staff to Aero Contractors. This is despite Aero Contractors growing organically from one aircraft to a fleet of nearly six aircraft through prudent management.

“AMCON has requested that Aero Contractors remit its saved funds to AMCON’s coffers, rather than allowing the company to reinvest in expansion and turnaround initiatives.

“We respectfully request that the appropriate authorities grant Aero Contractors Company waivers and relief on tax liabilities to support its recovery and growth.”
However, efforts to reach out to AMCON proved abortive.

But, a source close to AMCON who didn’t want his name in print said that the asset management company had over the years improved the performance of the airline through it’s takeover.

The source also confirmed that AMCON about a month ago, seconded the Director of Finance and Admin (DFA) of Arik Air to Aero Contractors while that of Aero Contractors was redeployed to Arik Air.

The source also said that AMCON would address all the concerns of the union.