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

The airline, however, faulted the claim, denying AMCON’s involvement in its operations.

It would be recalled that AMCON formally took over Aero Contractors in 2016, following the dissolution of its management.

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.

However, the airline’s PR agency, SY&T Communications Ltd, noted that Aero is in Receivership, and that no healthy company worldwide goes into Receivership.

“Capt. Ado Sanusi, a thoroughbred professional, is managing the airline as MD of Aero, and he has been doing a fantastic job.

“So, it is misleading for anybody to claim that AMCON is running Aero. That is pure mischief.”

“AMCON can second their staff to any entity where the Corporation has an interest, be it in Aero, Arik or any other firm,” the agency stated in its response.

UATE’s circular had 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’s 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 from tax liabilities to support its recovery and ensure its long-term sustainability.