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AMCON takes over Aero Contractors, appoints new manager

By The Rainbow
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The Asset Management Company of Nigeria has taken over the Aero Contractors Airline  following lingering labour and financial crisis.

AMCON announced the  the dissolution of the Board of of the airline and the appointment of a new manager to oversee its affairs. .

AMCON said in a statement on Fridy  it had also engaged a reputable accounting firm to undertake a forensic audit of the airline's accounts over the last five years ( as from 2011).

The asset manager said that by this development it had become   both the majority shareholder and creditor of Aero.

It explained that  its eventual take over of Aero Contractors was to keep the airline on the path of profitability. The move was one considered long overdue as the airline in recent month has been immersed in severe labour and financial crisis.

According to the statement, “In furtherance of the statutory responsibility of acquiring eligible bank assets and putting them to economic use in a profitable manner, the management of AMCON decided to make changes in the management of the Aero airline to protect the brand heritage of the airline, a very well cherished value.

“An industry based management team will be put in place to provide the highest level of professional competence which would ensure a quick re positioning of the company. 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.”

Aero Contractors is Nigeria's oldest aviation company which commenced business in 1959, initially providing services to oil and gas sector, before venturing into fix wing operations in the year 2000.

“Currently, the Asset Management Company of Nigeria (AMCON) owns 60 per cent of the company with the remaining 40 per cent held by the Ibru family,” AMCON said in the statememt.In recent years, the airline's financial fortunes has continued to go down sparking severe crisis among staff and labour groups in the aviation sector who allege massive fraud by the management of the airline was responsible for the airlines woes. At the peak of the crisis, following public complaints that the airline could go bust, the Federal Government had to mandate AMCON to take over a majority equity in the airline.