Most Read

  • Telkom CEO Sipho Maseko to step down
    Telkom has announced that its CEO and executive director Sipho Maseko will step down on 30 June 2022. The telecoms company said the process to appoint a successor is well underway and a designated group CEO will be announced in the not too distant future.
  • #BehindtheBrandManager: Meet Tamsin Darroch of Kellogg's South Africa
    Few food brands have the historical connection with consumers around the world as Kellogg's does, having held meaning at the breakfast table for over a century. By Lauren Hartzenberg
  • How cooking oil brought a moment of joy during a dreadful week
    It is possible that cooking oil prevented more looting in South Africa in the last week than the president, the ANC, the intelligence community, the army and the police combined. This, without question, says something about the versatility of the product. It says even more about the state of the state. When you are shown up by canola, you might want to revisit your strategy. By Howard Feldman
  • Park Advertising launches digital performance unit, Lucid Media
    Performance Media across Search, Social and Programmatic platforms is the single fastest growing area of digital media in South Africa. Combine that with the detailed analysis of campaign management, tagging and ad operations, and it becomes apparent that these highly specialist functions require a highly specialised unit.
  • Transnet hit by cyberattack - Operations disrupted nationwide
    The Transnet Port Terminals website has been hacked, implying that all companies under Transnet have been affected. All Transnet websites were down at the time when reporting was done for this SA Trucker article. The publication cited sources who requested to remain anonymous because they are not allowed to speak to the media.
  • Business unusual for small enterprises on the road to recovery
    The Covid-19 pandemic has hit South Africa's small business sector hard and there are grim statistics to bear this out. Those statistics will not be repeated here. After all, if you are a small business owner setting out on the road to recovery, the last thing you probably want is more details of the toll the pandemic has taken on small enterprises. Far more useful would be some good, solid tips on how to build back better after any business setbacks. By Ameen Hassen
Show more
Advertise on Bizcommunity

Subscribe to industry newsletters

Government agency takes over Nigeria's biggest airline

A Nigerian government agency on Thursday said it had taken over the country's main private airline Arik Air to prevent it from going bust because of spiralling debts.
© Jaromír Chalabala via 123RF
Jude Nwauzor, a spokesman for the Asset Management Corporation of Nigeria (AMCON), told AFP: "AMCON has taken over the management of Arik because the whole place is in a mess. We have appointed a new management to stabilise the airline and prevent it from going down like other airlines in Nigeria."

Arik, which was set up in 2006, has a 60% share of domestic flights in Nigeria. It also serves destinations across West Africa and flies to London, Johannesburg and New York.

Loans totalling 135 billion naira


AMCON said Arik had failed to repay loans totalling 135 billion naira (US$429 million, 402 million euros) by the end of December and also had debts to "a lot of foreign creditors".

The total amount of debt is more than 300 billion naira, it added. Staff salaries have not been paid for up to eight months and it had defaulted on payments for insurance, repairs and servicing of its planes.

"International creditors have seized some of its planes because of mounting debts," said Nwauzor.

Passengers have borne the brunt of the increasing management and financial problems at Arik, with frequent cancellations and delays to services. In December, services were grounded by a 24-hour strike over unpaid wages.

"Aviation industry already facing challenges


Said Nwauzor: "The aviation industry is already facing challenges and government does not want Arik, being the largest carrier in Nigeria, to go the way of others and so decided to intervene.

"Our intervention is to stabilise and run Arik into profitability so that it can go back to regular and undisrupted operations. We will also encourage interested investors to inject fresh funds into it."

Aviation minister Hadi Sirika said in a statement the intervention would "stabilise the operations of the airline", preventing job losses and protecting Arik as a going concern.

Arik is not the only airline struggling: Nigeria's second-biggest carrier, Aero Contractors, stopped services for four months last year because of "serious financial difficulties".

Lack of foreign currency


Airlines say a lack of foreign currency caused by the economic recession in Nigeria has left them unable to pay fuel suppliers and in some cases landing charges at airports outside the country.

Aviation analysts have previously criticised the running of Nigerian airlines for trying to minimise operating costs to boost profits. That has seen more than 40 operators go bust in 35 years, including Nigeria Airways, which collapsed in 2003.

Abuja's only airport will be shut completely for at least six weeks from early next month for essential runway repairs.

International carriers Lufthansa, Air France and South African Airways, however, have refused to re-route their Abuja flights during the closure.

Source: AFP


SOURCE

I-Net Bridge
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
Comment

Let's do Biz