AMCON takes over Aero Contractors

The Asset Management Company of Nigeria (AMCON)
has announced the dissolution of the Board of Aero
Contractors and its appointment of a new manager to
oversee the affairs of the airline.
AMCON said it has also engaged a reputable
accounting firm to undertake a forensic audit of the
airline’s accounts over the last five years ( as from
2011). AMCON in a statement this morning said it this
becomes both the majority shareholder and creditor of
Aero. AMCON said 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.
“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,”
AMCON said in the statement.
“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,” the statement
added
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.
Aero currently provides aviation solutions for the oil
and gas industry, in particular, and other industries in
general, and combines Rotary Wing, Fixed Wing,
maintenance and logistical support in one package.
AMCON assured regulatory authorities in the aviation
sector, 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.
Asset Management Corporation of Nigeria (AMCON)
was established on the 19th July 2010, when the
President of the Federal Republic of Nigeria signed the
AMCON Act into Law.
AMCON was created to be a key stabilizing and re-
vitalizing tool established to revive the financial
system by efficiently resolving the non-performing
loan assets of the banks in the Nigerian economy.