Other defendants in the case include Mr. Kamilu Omokide, a former receiver manager of Arik Air Limited, Capt. Roy Ilegbodu, Arik Air’s Chief Executive Officer (CEO), Union Bank Limited, and Super Bravo Limited.

During the proceedings, the second prosecution witness, Mr. Augustine Obikwe, a retired Union Bank official, sought to tender a document he obtained from the EFCC.

However, the defense team objected to its admissibility, arguing that it was neither signed nor properly certified.

After hearing arguments from both sides, Justice Dada ruled that the witness was not part of the EFCC’s investigative team or an AMCON official, making him ineligible to tender the document.

Citing Section 104(1) of the Evidence Act, she held that only an officer with the original document had the authority to certify it.

“It is trite that the party must lay the foundation for any document sought to be tendered under the Evidence Act. Public documents must be certified by a public official,” the judge stated, rejecting the document.

Led in evidence by prosecution counsel Dr. Wahab Shittu (SAN), the witness, Mr. Obikwe, recounted his role in the financing of Arik Air’s aircraft procurement. He disclosed that he had worked in the United States from 1980 to 1982 before serving as the Group Executive Director of Corporate and International Banking at Union Bank.

He explained that Union Bank acted as a guarantor for Arik Air in securing funding for the acquisition of five aircraft—three Boeing 737-800 and two Airbus 340-500 planes—through export credit agencies, including US EXIM Bank, Coface of Germany, and the Export Credit Guarantee Department (ECGD) of the UK.

“Union Bank did not commit any money for the guarantee of the 85 percent. The three Boeing 737-800 were used for local operations, while the widebody aircraft were deployed to New York and London,” Obikwe testified.

He further noted that until his retirement from Union Bank in August 2009, Arik Air had never defaulted on its loan repayments.

During the hearing, the prosecution sought to tender a report from a meeting held by stakeholders in London. However, the defense team, led by Prof. Taiwo Osipitan (SAN) and Mr. Olalekan Ojo (SAN), objected on the grounds that the document was neither signed nor dated.

Ojo (SAN) argued that the document lacked authenticity, while Osipitan (SAN) questioned its origin, emphasizing that only original copies could be certified under the law.

Despite the objections, prosecution counsel Shittu (SAN) insisted on its relevance, stating, “Even if the document was stolen, in as much as it is relevant to the case, my lord, it is admissible in the law court.”

Justice Dada ruled in favor of the defense, maintaining that the document could not be admitted as evidence due to improper certification and the fact that the witness was not an EFCC investigative officer.

Following this ruling, the court adjourned the trial to May 19, 2025, for further proceedings.

AMCON also said that its intervention in the troubled Arik Air in February 2017, saved the carrier from liquidation, but vowed that it would ensure the recovery of the total debts owed to the corporation by various business organisations including those owned by Sir Johnson Arumem-Ikhide irrespective of the orchestrated blackmail.

Mr. Jude Nwauzor, the head of Corporate Communications Department of AMCON, stated these on Friday in Lagos while presenting the facts to the aviation correspondents.

AMCON, a debt recovery agency of the Federal Government of Nigeria had watched as several commentators, and writers spread skewed and misguided reports on different media platforms, which does not explain the sorry status of Arik Air before AMCON’s the Federal Government of Nigeria mandated AMCON to intervene in the airline.

Giving the breakdown of the total debts, Nwauzor informed that Arik as of December 2024, owed AMCON N227,637,469,394.34 billion; Rockson Engineering, N163,502,837, 397.75 billion, while Ojemai Farms owed the corporation another N14, 031, 457, 980.71 billion, totaling N455, 171, 764, 772.80. Nwauzor also said that Arumem-Ikhide in some of its agreements with AMCON, agreed to the debts owed to the government agency, and signed restructured agreements on payback, but failed to honour his agreements.

AMCON insisted that despite the campaign of calumny against it, it would ensure the debts were recovered and return the companies to profitability. AMCON insisted that it didn’t take over the running of Arik Air by fiat as claimed in some quarters, but the banks, including Union Bank and Bank PHB (now Keystone Bank), Zenith, Access, Standard Chattered, Afexim, which the airline owed billions of naira, sold the non-performing loans of Arik to AMCON.

He insisted that the takeover followed all the due processes and in accordance with the Act setting up AMCON, and the laws of the Federal Republic of Nigeria. According to Nwauzor, AMCON had been part of Arik Air since 2011 but was compelled to take over the company in 2017 through the appointment of a receiver manager after several interventions failed.

He emphasised that the AMCON Amendment Act, 2021 empowers the corporation to, inter alia, take possession, manage, or sell all properties traced to debtors, whether such asset or property is used as security/collateral for obtaining the loan in particular.

He explained that the receiver manager also had the option of either managing or selling off the assets of a debtor company like Arik Air, but AMCON was mandated to ensure that the airline did not die by the Federal Government.

He said:

“If you recall, at the time, there were not so many of these airlines that we have today like Air Peace, United Nigeria, Green Africa, Max Air,  Value Jet, etc, so, the Federal Government at the time, mandated AMCON to save the over 1,500 jobs that would have been lost if the airline was liquidated and the best approach was to appoint a receiver manager to manage the airline. That was the mandate of the Federal Government of Nigeria.

“As you know, AMCON is owned by the Central Bank of Nigeria (CBN) and the Ministry of Finance and is guided by the AMCON Act drafted by the National Assembly, and signed into law by the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria. That was how AMCON came to be. What that means is that you cannot play outside the laws of the Federal Republic of Nigeria, and the AMCON Act, and that the Corporation since inception is guided by this. If push comes to shove, AMCON still has the option to liquidate the company and any other debtor organizations. But, we are still today managing Arik, which was insolvent in 2015 and 2016 before AMCON stepped in.”

He pointed out that AMCON since 2017 when it intervened in the airline, had been putting in money to sustain its operations, yet was unable to recover its investment in the airline. AMCON expressed that it was because the promoters of Arik Air could not pay back the debts it owed several financial institutions either in the country or beyond, stressing that this compelled the banks to sell the non-performing loans to AMCON.

He further debunked the claim that Arik Air had 30 operating aircraft at the time of AMCON intervention in 2017, maintaining that most of the aircraft claimed to be in the fleet of the airline were either abandoned, scrapped, or inactive at the time of intervention.

An investigation by our correspondent revealed that only eight of the 30 aircraft were operational at the time of AMCON intervention.

He insisted that no matter the blackmail, AMCON would ensure the recovery of the debts irrespective of who was involved. Adding that by the time AMCON intervened in Arik Air in 2017, there was zero naira to run the airline, as both KPMG and PwC reports pronounced the airline insolvent pre-receivership.

“We did the forensic evaluation of Arik Air in 2015 and 2016; the report wrote off Arik as an insolvent company. The experts proposed that AMCON should liquidate the airline and move away. Even, the liquidation would not have recovered a fraction of the debts,” he said.

Recall, few days back, the Nigerian Airspace Management Agency (NAMA) had grounded some aircraft belonging to Arik Airline.

The Agency said the action was sequel to an order by the enforcement department of the FCT High Court, regarding a debt of $2.5m owed by Arik to Atlas Petroleum International Ltd.

But, aviation unions appealed to President Bola Tinubu to intervene in the crisis.

The unions in a joint letter dated first August, 2024 signed by their secretaries general and addressed to President Tinubu say, “the grounding of the aircraft has caused anguish and frustration among passengers, with many left stranded and unable to make alternative travel arrangements”.

The unions; the National Association of Aircraft Pilots and Engineers (NAAPE) National Union of Air Transport Employees NUATE and Air Transport Services Senior Staff Association of Nigeria, ATSSSAN noted that, in a letter dated February 20, 2024, they had requested the President’s urgent and compassionate intervention in the matter, which has now led to the grounding of Arik Air’s fleet of four aircraft.

Techeconomy can report that Arik Air is back in the skies.

Confirming the development, Captain Roy Ilegbodu, chief executive officer, Arik Air Limited (in Receivership), said that during the brief pause, the airline was dedicated to ensuring a smooth and seamless return to service, “preparing to welcome you back on board with the comfort and reliability you expect from us”.

Captain Ilegbodu attributed the return of the airline to the skies to the teams spirited efforts:

“Our entire team has been working tirelessly to enhance your travel experience. From our friendly ground staff to our attentive flight crews, everyone at Arik Air is ready and eager to serve you once again. Whether you are traveling for business or leisure, you can rely on Arik Air to get you to your destination smoothly and comfortably.

“We extend our gratitude to all the stakeholders who played a crucial role in resolving the recent impasse. Your support and cooperation have been instrumental in our return to the skies.

“Thank you for choosing Arik. We look forward to seeing you on board!”, Captain Ilegbodu said.

READ about Minister’s order to ground Arik Air fleet here.

A statement on Tuesday signed by Mrs Obiageli Orah, director, Public Affairs and Consumer Protection at FAAN, reads:

“This is to inform the public that the Federal Airports Authority of Nigeria (FAAN) is aware that Arik Airline has been grounded due to litigation issues between the airline and their creditors.

“The Authority has instructed all airport managers across the country to assist the affected passengers as Arik Airline works out plans to rebook and transfer passengers to other available flights.

“For further information, please contact Arik Airline on these lines: 0700003592745, 02012799999

“FAAN will continue to ensure safety, security, and comfort for all air travellers in Nigeria”.

In a statement available to Techeconomy, the company expressed dismayed by the sudden order issued “made without warning or consultation.

Arik Air said it has serious repercussions for its valued passengers, dedicated employees, and the broader Nigerian economy.

“Our priority has always been to connect people and facilitate commerce, especially on critical domestic routes. The grounding of our fleet disrupts these vital services, leaving passengers stranded and inflating already high travel costs. This decision hurts everyday Nigerians who rely on our flights for business, family, and essential activities.

“The decision also disregards ongoing judicial processes. On February 26, 2016, a judgment was made in favor of Atlas Petroleum International Limited and Engineer Arthur Eze.

“However, there is an ongoing case in the Federal High Court, where Asset Management Corporation of Nigeria (AMCON) is asserting its secured interest in Arik’s assets.

“Despite this, a writ of attachment was issued on July 18, 2024, targeting our Aircraft, subsequent to which, further to an originating motion filed by AMCON, the High Court of the FCT on July 25, 2024 clearly instructed all parties to maintain status quo. We therefore are perplexed as to the grounding of our fleet, which is an overreach of the ongoing judicial processes and directives of court.

“We believe this action undermines the rule of law and sets a dangerous precedent, prioritizing unsecured private interests over the public good and the rights of secured creditors. We are committed to following the legal process and have full faith in the judiciary to resolve these matters fairly.

“Arik Air has always been a proud partner in Nigeria’s growth, providing reliable and safe air travel. We urge the authorities to reconsider this decision, lift the grounding order, and allow us to continue serving the public and supporting the economy.

“We stand with our passengers and employees during this challenging time and are working tirelessly to resolve this situation. Your support and understanding are greatly appreciated.

“We sincerely regret any inconvenience caused to our esteemed passengers”, the statement reads.

Uganda Airlines which is the flag carrier of the Republic of Uganda would be flying from Entebbe International Airport in Uganda thrice a week to Lagos, Nigeria.

The airline that is rated at the top of the list of the youngest fleets of the world airlines is also known as the Uganda National Airlines Company.

Mr. Patrick Ziwa, the Ugandan Country Manager said concerning the partnership between SAHCO and Uganda Airlines that they are happy and blessed to be in Nigeria starting from the 19th of October, 2023. He went on to say that Uganda Airlines is excited about working with SAHCO, partnering with SAHCO and also supporting SAHCO during this novel journey.

SAHCO has been able to attract and retain the confidence of both her existing airlines and new airlines due to the seamless, safe and speedy service delivery which SAHCO is known for.

SAHCO is the only Aviation Ground Handling company that is present in all the commercially operated airports in Nigeria.

In recent times, many foreign airlines have moved their aviation ground handling operations to SAHCO so as to enjoy being handled by a loyal and dedicated workforce who are well trained and whose integrity is undoubtable, delivering their activities in line with global best practices.

Also, SAHCO has invested on modern aviation ground support equipment (GSE) which operate on alternative power sources and are rugged to enable effective maneuvering in the Nigerian terrain.

These GSE are also equipped with the technology to guarantee zero carbon emission to ensure the commitment of SAHCO to protecting the environment. Among these is the first ever Cool Dollies which are used to convey temperature sensitive shipment from the aircraft to the warehouse to safeguard that the shipments are not denatured.

In the same vein, Ibom Air has signed an aviation ground handling contract with SAHCO to handle her regional flights starting with the Lagos to Accra route which also commenced on October 17, 2023 by providing Passenger handling services, Baggage handling services, Ramp handling services, Cargo handling services and Premium Lounge services.

Despite operating in a challenging industry, SAHCO ensures that the focus is to confirm operational excellence which has helped in the handling of an array of aviation clients that enjoy customer specific services that are unique to them.

This has enabled SAHCO to be the leading player in the Nigerian aviation landscape by providing services to Aero Contractors, African World Airways, Air Cote D’Ivoire, KLM, Air France, Air Peace, Arik Air, Allied Air, Badr Airlines, Bristol Helicopters, British Airlines, Camair-Co, Caverton Helicopters, Dana Air, DHL Aviation, Ethiopian Airlines, Emirates Airlines, Execujets, Green Africa Airlines, Ibom Air, Inter Air, Max Air, Middle East Airlines, Overland Airways, South African Airways, TAAG Angola, Tarco Airlines, United Airlines, United Nigeria, Airlines, XE Jet, Value Jet, Virgin Atlantic Cargo.

Since aviation is all about safety, SAHCO has ensured that the organization is RA3 certified, ISAGO certified and ISO9001 certified.

It is worthy to note that SAHCO is also the recipient of numerous awards both locally and internationally due to its quality service delivery in aviation ground handling operations in Nigeria.

In a statement available to Techeconomy, Arik strongly refuted the publication by Sahara Reporters on October 3, 2023 (“SR Publication”).

In response to these accusations, the company said they feel compelled to clarify the situation for the benefit of the general public.

Grant of Duty Waivers

Arik said that all duty waivers granted to it before the receivership period, under the leadership of Sir Johnson Arumemi-Ikhide, were not properly documented and handed over to the receivership team as required by law.

“Furthermore, it was Sir Johnson who pledged various Arik Aircraft and Engines to various local and international lenders, possibly in violation of the terms of the waivers”, the statement reads.

Arik’s financial struggles with local and foreign creditors have been well-documented, including enforcement actions against assets pledged to them, which may have enjoyed waivers.

“It is also worth mentioning that as at today, there is complete duty waiver on commercial planes”.

Cape Town Convention

“The Convention and Protocol are intended to reduce risks for creditors, and consequently, borrowing costs to debtors, through the resulting improved legal certainty. This promotes the granting of credit for the acquisition of more modern and thus more fuel-efficient aircraft. The intention is to give international assurance to the effect that where a debtor defaults in the payment of loans or leases over a plane, the creditor can easily take possession of the plane.

“Debtors therefore were required to issue an Irrevocable De-Registration and Export Request Authorisation (“IDERA”) to lenders and lessors over the pledged planes. This is judiciously managed in Nigeria by the Nigeria Civil Aviation Authority (“NCAA”).

It is a false claim to suggest that a lender needs to go to court to enforce its rights under the Cape Town Convention. The public is invited to note that it amounts to sleight of hand for a borrower to issue an Irrevocable deregistration and export request authorisation (IDERA), enjoy a credit facility on the basis of the security conferred by the IDERA, then behind the lender, enter into another arrangement that will prevent the peaceful enjoyment of the IDERA.

“We assure the public that Arik is not party to this. It is Johnson Arumemi-Ikhide that has done everything possible to prevent lenders from taking full benefit of their IDERA. If this farce is allowed, it portends grave dangers to the Nigerian aviation industry both in terms of access to leases and international aircraft financing. The international lending and leasing community is keenly watching this unfolding episode.

Allegations of Illegal Sale of Aircraft and Aircraft Parts by the Receivership

“It is crucial to dispel the baseless and unfounded claims made in the SR Publication regarding the sale of aircraft and aircraft parts during the receivership period. The facts surrounding specific aircraft transactions are detailed below:

a. The Q-400, CRJ-1000, and CRJ-900 Aircraft

Arik’s involvement with Export Development Canada (“EDC”) in a financing transaction for the purchase of specific aircraft types is as follows:

1. EDC is a Crown Corporation of Canada. It serves as the export bank to support the production and export of made-in-Canada goods;
2. Johnson Arumemi-Ikhide approached Bombardier, a Canadian company, to purchase planes for his aviation business;
3. EDC was approached to grant loans to support the purchase request;
4. EDC agreed an acceptable structure to the lending requests taking into consideration Nigeria country risks, etc.
5. EDC agreed to extend loans to an entity called JEM Leasing Limited towards meeting Arik’s equipment needs. The company was registered as a special purpose company in a tax haven. Arik had no shares in the company;
6. JEM Leasing Limited purchased two Bombardier Q-400 aircraft with one spare engine (the “Q400 Aircraft”) and one Bombardier CRJ-1000 Aircraft. These were pledged to EDC;
7. Furthermore, Johnson Arumemi-Ikhide pledged two CRJ-900 Aircraft (the “CRJ Aircraft”) owned by JEM Air Limited. JEM Air Company was also registered as a special purpose company in a tax haven. Arik had no shares in JEM Air Limited even though it was fully responsible for paying-off the loan on the planes owned by the comapny;
8. JEM Leasing Limited leased the two Bombardier Q-400 aircraft with one spare engine (the “Q400 Aircraft”) and one Bombardier CRJ-1000 Aircraft to Arik (in Nigeria);
9. IDERAs were duly executed in favour of JEM Leasing and EDC. These were duly noted by NCAA;
10. Arik paid lease sums directly to EDC in settlement of the loan obligations of JEM Leasing Limited to EDC;
11. Johnson Arumemi-Ikhide, on behalf of Arik (pre-receivership) approached the Federal Government of Nigeria for a waiver of customs duty on the planes. This was granted;
12. Due to Arik’s financial difficulties, pre-receivership, they defaulted on the lease obligations related to the Q400 and CRJ 1000 Aircraft;
13. Post-receivership, the receivership team, after initial struggles with meeting lease rentals on the planes, decided to exit the CRJ line of planes. It further agreed not to interfere with EDC’s mortgage rights over the CRJs;
14. To come to the decision, the receivership team took into consideration the history of technical availability of the planes, the lack of capital by Arik to buy or effectively overhaul engines, and the need to reduce the complexity of Arik’s operations with several aircraft types in the fleet. An independent valuation of the planes by specialist international company was conducted;
15. EDC agreed to write off Arik’s outstanding lease obligations on the CRJ 1000 Aircraft owe to JEM Leasing Limited, which is under its control. Compared to their valuation, this was a good deal for Arik;
16. EDC confirmed in a letter dated April 21, 2023, that they sold the two CRJ900 Aircraft. The decision to sell was made by EDC, not the receivership team of Arik;
17. Regarding the CRJ1000 Aircraft, EDC negotiated with a buyer who chose to dismantle it into its constituent parts;
18. It should be noted that JEM Leasing Limited, the owner of the CRJ Aircraft, confirmed in a letter dated May 5, 2023 that they sold the plane.
19. The CRJ planes sold were not owned by Arik. The Receiver/Manager could not have sold or passed title on assets that are not covered by his receivership;
20. In summary, the sale of the CRJ Aircraft was a lender-led transaction. Arik only exercised its rights to exit an unprofitable lease arrangement. Thus, the assertion that the Receiver/Manager of Arik sold the aircraft is without merit.  It is patently false”.

b. The MJI Aircraft

Continuing on the allegation that the receivership team of Arik sold the Boeing 737-700 MSN 23640 aircraft with registration number 5N-MJI (“MJI”), the company described it as “also baseless”.

“The true circumstances surrounding MJI are as follows:

1. The MJI was flown to Lufthansa Technik’s (LHT) facility in Malta for a C-Check in 2013, which was never completed. This occurred over 4 years before the commencement of the Arik receivership in February 2017;
2. Over time, mainly prior to the receivership, the aircraft was cannibalized, rendering it unserviceable;
3. The MJI lacked engines as they had been removed by the pre-receivership management of Arik;
4. The MJI did not possess a valid Certificate of Airworthiness, and its cabin had been stripped in preparation for the incomplete C-Check;
5. The aircraft was abandoned in a remote dump site at the Maltese Airport, due to infrastructure development by the airport authorities;
6. In light of these circumstances, LHT in 2020 (seven years after the commencement of the C-check) advised a tear down to salvage parts from the plane;
7. Please note that it was uneconomical to overhaul the plane. In any case, Arik lacked the capital for such a venture. There was therefore no way of flying same to Nigeria;
8. The Receivership Team conducted a valuation of the plane prior to the tear down. The value was near scrap at $1.55m. Therefore, rather than lose the plane to the aircraft graveyard in Malta, the Receivership Team authorized LHT to tear down the plane and salvage parts from the aircraft, with the intention of returning value to Arik. However, LHT withheld all salvaged parts to offset substantial debts owed to them by the pre-receivership team of Arik. Arik owed LHT over $34 million; and
9. MJI was pledged to the Asset Management Corporation of Nigeria (AMCON)”.

Arik said it is co-operating with the Nigeria Customs Service, in respect of these allegations and they are being provided with comprehensive details of the Aircraft, which will demonstrate clearly, that there has been no misdeeds on the part of the receivership.

“We urge the public to disregard the sensationalized headline click-bait of $40 million duty waiver.  The duties are paid in Naira.  The use of inflated and unsubstantiated sums in newspaper headlines, particularly Sahara Reporters (SR) has been part of the strategy to tarnish the reputation of Arik Air Limited (in Receivership). The public is also advised to be wary of those who, if they cannot regain control of Arik would rather kill it.

“We challenge SR to practice responsible journalism and have the courage to hear from the other side before publication.

Arik Air Limited (in Receivership) remains indebted to AMCON to the tune of over N240 billion. “

Together with Rockson and Ojemai Farms, all companies owned by Johnson Arumemi-Ikhide, they are indebted to the tune of over N400 billion to AMCON.

“Rather than engage in fruitless campaigns of calumny, they should approach AMCON to pay their loans”, the company said.

This came even as AMCON explained the major reason it intervened in the airline’s N300 billion debt saga.

AMCON also denied reports of the airline having over 17 aircraft before it took over, stating that most of the aircraft were unserviceable.

It equally stated that its frustration in setting up NG Eagle led it to the sale of the last stages of its Air Operator Certificate (AOC), to an unnamed company set to commence operations in the country.

Arik Air was set up in 2004 from the ashes of Nigeria Airways, which was liquidated in 2002 by President Olusegun Obasanjo’s government.

In August 2006, the Federal Ministry of Aviation granted Arik Air authorisation to fly to Trinidad and Tobago as well as Amsterdam, London and Madrid in Europe.

However, while speaking during an interactive sessions with journalist in Lagos yesterday, AMCON’s Managing Director, Ahmed Kuru, noted that the asset management company does not take pride in taking over thriving businesses.

Kuru, who noted that AMCON got caught in the Arik Air saga and intervened to save the carrier, said:

“The Federal Government at that time wanted a situation whereby Arik should be saved because of the security report that they had that the airline stood no chance of survival for another two weeks in 2016.

“This call for intervention was initiated by former Vice-President, Prof. Yemi Osinbajo, when he acted as acting President in the absence of former President Muhammadu Buhari.

“The idea of Acting President, Prof. Yemi Osinbajo, was that Arik must be saved because of its prominence at that time. We made it clear that we didn’t know much about aviation.

“Capt. Roy Ilegbodu was headhunted. There was Capt Roy, then Capt. Ado Sanusi. These are some of the best guys in the industry. They said AMCON came to kill Arik when in actual fact, Arik would have long gone. But the fact that AMCON’s name was there, then, AMCON has killed it.”

The AMCON MD put the carrier’s indebtedness to the company alone at N240 billion, adding that the claim that the airline had 17 aircraft at the time the carrier was taken over was a big lie.

“When we got into Arik, there were about seven aircraft on the ground. It doesn’t mean the aircraft were okay but it was on the ground which means if you fix one or two things, they will fly.

”Based on the record we had, Arik was supposed to have more than 30 aircraft. Some of them had been vandalised and cannibalized. What they did was to take one engine and put in another aircraft, take the landing gear and fix in another.

“If you go to Arik hangar, you will see many aircraft parked. They look so innocent as if they can fly. Many of them have no engines, landing gears, and some other things. They have been cannibalised and even become a challenge. Some of the aircraft belong to some lenders.

“Even to the lenders, it became a challenge. Most of the aircraft belong to some lenders, such as AFRI-EXIM Bank, Access Bank, Zenith Bank, and one other bank from Canada. Some of them, when they tried to seize the aircraft, they realised that the engine belonged to a company and another part to another company,” he said.

Kuru noted that the case of Aero Contractors was worse before the assets recovery firm came in for rescue, describing what culminated in the near-death of the once flourishing carrier to a case of “when people decide to steal from themselves.”

He said:  “AMCON can never be popular with the kind of job we do. We don’t go and close a running business. Some of those businesses were already dead. AMCON cannot see a thriving business and close it down. It does not happen like that.

“The founder of Arik Air, Sir Johnson Arumemi-Ikhide, had a good idea and wanted to have an international airline but got it all wrong with his choice of aircraft, some costing as high as $150 million, and overpaid for so many others.”

AMCON sold truncated stage five NG Eagle’s AOC

He stated further that the frustration encountered by the firm in setting up NG Eagle led it to sell the last stages of its AOC to an unnamed company which planned to begin air operations.

‘The NG project was truncated at stage five of the process of getting it’s AOC. The NG Eagle’s AOC processes are expected to expire next week and it is incumbent on the new owner to continue with the processes or allow it to expire.

“We started the process of setting up NG Eagle. It took us two years to follow the process. We went through the rigour of getting the license. At that point when we were about to pick up the license, some people came up that we were trying to set up a national carrier. We were frustrated.

“If you recall, there were three aircraft that were branded sitting on the tarmac and they sat on the tarmac for one and half years which was very strange.

“We went through the process all to the point that we were to pick our license. They thought we wanted to float a national carrier. Unfortunately, we were not encouraged and we were not able to deal with it up to the extent that we had to find a way of dealing with the license because it was expected to expire within some time.

“We started the process and we were able to sell the process to somebody who intends to do airline business if he meets the requirements of the NCAA before the license expires.”

[Vanguard]

In a press statement on Friday, Arik said:

We equally wish to notify on the decision of the buyer to tear down the plane. Arik Air, as the lessee since 2014, operated the Aircraft pursuant to a lease agreement with JEM Leasing Limited. Arik discontinued operations of the CRJ fleet since 2019.

The airline reassured all stakeholders, including passengers, partners, and the general public, that the decision by the owner and financier of the Aircraft will not impact its (Arik’s) operations or compromise its commitment to providing safe, reliable, and convenient air travel services.

In a statement Sunday evening, Jude Nwauzor, Head, Corporate Communications at AMCON, said that the Judgement clearly and without equivocation affirmed that AMCON was competent and empowered to appoint the Receiver/Manager of Arik, that the appointment by AMCON was proper, and that the continued operations of Arik are not affected.

Put simply: the judgment does not affect the operations of Arik or the powers of the Receiver/Manager to superintend the affairs of Arik.

“Specifically, the Judgment did not either:

• rule against the appointment of the Receiver/Manager of Arik or
• (ii) “grant all the prayers of the Plaintiffs” as stated in certain online publications. The Court did hold that the Receiver/Manager was obligated to act in the best interests of Arik and other creditors – a point that AMCON, and the Receiver/Manager have never disputed.

“In any event, AMCON and the Receiver/Manager are dissatisfied with certain parts of the Judgment relating to AMCON’s dealings in specific transactions concerning limited assets.  We are exercising our constitutional rights to appeal, in respect of these.

“The public should bear in mind that the issues under appeal have no bearing on the continued operation of Arik as a company in Receivership – as the Court has already affirmed the Receivership.

“We urge media houses and the general public to rely only on certified true copies of court judgments, especially in reportage about court pronouncements”.