Less than three weeks after its takeover by the Asset Management Corporation of Nigeria (AMCON), the international financiers and other creditors of Arik Air have concluded plans to sue the Federal Government of Nigeria.
Nigerian Tribune reports that the creditors are putting their resources together for the suit against the Nigerian government for the airline’s failure to honour its international obligations.
The development is coming just as AMCON has scaled down Arik Air operations to less than 30 per cent.
The airline, which at peak periods used to operate 120 flights a day now operates about 15 flights daily with very low load factor.
Out of 28 operating aircraft in the fleet of the airline, only eight are now in operation which include two Bombardier, CRJ 900, five Boeing 737 and one Bombardier Q400 which is in a dedicated service with Chevron.
Arik Air has scaled down its domestic and regional operations, while suspending international operations following AMCON takover.
Nigeria has now lost the West Coast and other African destinations to Asky, AWA and Ivory Coast’s national carrier as Arik has stopped most of its regional flight services on the routes.
Arik was the only Nigerian airline that flew to Dakar, Abidjan, Luanda, and Libreville. Since it was taken over by AMCON, it has stopped operating to most of these destinations.