If Aero Airlines must keep afloat, its managers would need to put in place a turnaround strategy of reducing work force to 700 workers from the existing 1, 453, investigation has revealed.
Apart from cutting down on the workforce by an estimated 51 per cent, sourced hinted that the airline needs serious surgical intervention, including fleet enhancement to accommodate the lease of eight aircraft and route expansion in Wet and Central African routes alongside some domestic routes.
The Nation investigations also revealed that failure on the part of managers of the airline to carry out financial restructuring to ensure the carrier is able to pay its suppliers as and when due, may sound the death knell for the hitherto solid carrier..
A source hinted that should the airline carry out the restructuring plan, the benefits will begin to accrue within the next year.
Investigations also revealed that Aero Airlines this year obtained a loan running into over N120 m from the Asset Management Corporation of Nigeria (AMCON), to stop aircraft lessors from repossessing some aircraft from the carrier.
Aero, investigation further revealed may not get additional loan from AMCON, without carrying out staff rationalisation of about 51 per cent.
Currently, Aero operates two Boeing 737 and additional two Dash 8 aircraft with a staff strength of 1, 453.
The overloaded staff strength according to industry analysts puts the ratio to the four aircraft at 363 workers per airplane, a figure experts say is too high for an airline in desperate need of restructuring.
Investigations also reveal that Aero may be struggling to keep afloat, raising posers in the industry over what happened to its many aircraft many years ago as one the leading domestic carriers.
A source queried: “Aero has a strong safety heritage which is a strong asset to the airline, with its strong customer base.”
A few months ago, AMCON appointed former Director General of Nigerian Civil Aviation Authority (NCAA), Captain Fola Akinkuotu to turn around the airline.
Capt. Akinkuotu said he was pleased to be given the opportunity to turn around Aero Contractors, adding: “AMCON has given us a lifeline which is an opportunity for us to succeed. This option is a huge opportunity we must take as there’s no other option. I believe we can make Aero Contractors a success story.
“Aero is a premium Nigerian legacy brand, and I am determined to ensure that this airline continues to serve the Nigerian market efficiently, reliably and with its safety record intact.”
In April, 2016, the management of the airline took bold steps to commence the initial phase of restructuring by erasing some jobs, but aviation unions challenged the action.
Investigations revealed that the personnel affected by the planned restructuring were workers whose services were no longer required.
AMCON, earlier this year dissolved the board of Aero Contractors and appointed a manager to oversee the affairs of the airline.
AMCON also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last five years.
A statement issued by the public relations firm handling the airline: SY&T explained that the takeover of the airline by AMCON is in furtherance of the statutory responsibility of acquiring Eligible Bank Assets and putting them to economic use in a profitable manner.
Currently, the Asset Management Company of Nigeria (AMCON) owns 60 percent of the company with the remaining 40 per cent held by the Ibru family.
The statement reads: “AMCON has also engaged a reputable accounting firm to undertake a forensic audit of the airline’s accounts over the last five years.
“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.
“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.”
(culled from thenationonlineng.net)
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