“But with the advent of the dreaded coronavirus pandemic, the challenges have now triples meaning that the leadership of any airline that wants to stay afloat must think differently and strategically to ensure that the airlines survives.”
The disclosure, however, unsettled stakeholders, who sought the rationale and justification of new bailouts of private businesses that are perpetually at their infancy.
Although the aviation sector accounts for around eight per cent of AMCON’s restructuring portfolio, Ismail explained that the AMCON’s actions in restructuring the loans of airline operators protected a critical sector of the economy for Nigeria. However, Ismail said when the airlines failed to repay the loans, AMCON was left with no other choice, which necessitating the appointment of Receiver Managers to manage the airlines pending AMCON’s divestment. He also highlighted the challenges faced by aviation in Nigeria given AMCON’s experience since it intervened in the sector.
Apparently in agreement that past intervention were mismanaged to warrant AMCON’s takeover of two local airlines, stakeholders questioned the propriety of further injections into the sector. “By the way, has AMCON been able to find out the total annual earnings of the domestic airlines or the loss in their earnings for three months of March to May? AMCON, think about your primary link with aviation now; to recover debts from the airlines and not to add to their debts,” Ojikutu said.
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