Cally Air Operation Stalls Over N900m Debt To Aero Contractor, Planned Concession

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Cally Air Operation Stalls Over N900m Debt To Aero Contractor, Planned Concession
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Barely two years after it commenced flight services amidst fanfare and pageantry, operations of Cally Air, the state-owned airline of Cross River State may

Apart from this, the outgoing governor had earlier in the year listed some of the state’s assets to be concessioned to private firms and included Cally Air as one of such assets.

Our correspondent reliably gathered that the government owed Aero Contractors over N900 million for services rendered to it on the operations and maintenance of Cally Air for over 24 months. The B737-300 with the registration number: 5N-BYQ is still parked at the Aero Contractors hangar, while the other B737-300 with the registration number: 5N-GRS is at the graveyard of the Murtala Muhammed Airport , Lagos due to its non-airworthiness.

When contacted, a top management staff of Aero Contractors confirmed the development with our correspondent, but declined to give more details. It was learnt that the agreement stipulated that as the operator, Aero Contractors would be entitled to 10 per cent of net sales after deductions of all taxes and charges and all operations expenses as well as any fixed amount due to Aero.

“Also, the state government told the management to handover the aircraft to IRS Airlines Limited and prepare it for concession. But, the management insisted on the payment of debts owed before such a state could take place. As I am talking to you now, nothing concrete has been reached.”The aircraft has 144 seat capacity in two classes configuration of business and economy seats.

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